Understanding local authority roles in heat network development

Insights for local authorities

Heat networks are entering a period of rapid policy and regulatory change across the UK which will reshape how local authorities will engage with the sector. This report provides a pre-regulatory overview, guidance and frameworks to help councils prepare strategically and determine the best role they can play in this transition.

The report begins by situating heat network development within a shifting national policy landscape. In England, heat network zoning regulations will introduce statutory zone boundaries, mandatory connection readiness for certain buildings, and new responsibilities for Zone Coordinators. Across the UK, Scotland’s Heat Network Zone designations and Wales’ emerging strategic approach signal a wider move towards more structured, place-based planning for district-scale heat.

Recognising that each local authority’s capacity and context for heat network development varies, the report outlines five typical roles they could play, from early exploration to acting as a public-led developer or strategic coordinator. It also puts forward a Decision Support Tool to help councils identify where they currently sit and which guidance themes would be most relevant to them.

The rest of the report then focuses on practical delivery enablers, shared across seven core themes. The themes include planning tools, delivery models, and funding pathways. Local authorities will be able to use it to better understand how to align spatial priorities, how to identify long-term heat network opportunity areas, and the best ways to audit demand across schools, leisure centres and housing. It also provides a clear overview of delivery model choices and how to embed service standards, billing transparency and protections for vulnerable households early into their decision-making.

In England especially, zoning will reshape how heat networks are allocated, delivered and overseen, and councils will need new internal governance, legal capacity and cross-departmental coordination to take on this statutory role. The report offers advice to local councils on how to become or support a Zone Coordinator and understand incumbency rules.

The report reassures local authorities that they do not need to be the developer to play a decisive role. Instead, by strengthening spatial planning, coordinating anchor loads, embedding consumer protections and preparing for zoning, councils can ensure heat networks contribute meaningfully to local net zero, regeneration and affordability goals.

Key findings

• Emerging regulations and zoning frameworks will create new statutory responsibilities, requiring local authorities to strengthen their internal capacity and regulatory readiness.
• Local authorities can play a number of roles in this transition, from exploring options, to offering land and leading or funding delivery, so it is important to determine a role early.
• Councils can support credible, scalable, community-focused heat network solution by identifying clear delivery models, conducting early risk management, and embedding consumer protections into their design.