Heat networks

What is a heat network?

Heat networks are systems which use a central source of generated energy which is then distributed via pipework either to multiple residences in a single building, or to multiple buildings in a larger district heating network (DHN).  This avoids the need for individual boilers or electric heaters in every premises or building.  Heat networks can provide space heating, cooling and hot water.

Most existing heat networks in Northern Ireland use fossil fuels as the heat sources - believed to be about 100 (mainly communal systems.).  However, newer, larger heat networks can make use of heat sources that individual buildings cannot, such as large heat pumps accessing rivers and geothermal heat (both deep and shallow), green gases, waste heat (from industrial and commercial processes e.g. power stations and data centres), and biomass.

District heat networks

These networks vary in size and length, carrying heat from just a few hundred metres between homes and flats, to several kilometres and can even cover an entire city. 

Communal heat networks

Heat is supplied within a single building to multiple occupants, for example, heat supply in a block of flats. (Source: Energy Saving Trust website).

Benefits of heat networks

There are many benefits of heat networks compared to supplying heat at an individual building level. These include:

• significant carbon savings compared to conventional fossil fuel heating systems
• attract investment, create jobs and support local supply chains
• enables decarbonisation of hard-to-treat estates where installing individual heating systems can be difficult or costly
• using locally generated renewable electricity, and also local resources such as river and harbour water, industrial and commercial heat, geothermal (shallow or deep), solar, biomass, biomethane and combined heat and power, which can be scaled up as needed
• flexibility and future proofing, as they can be readily switched to connect to new energy sources as new primary heat sources arise
• providing cooling to buildings, particularly in the summer months with the advent of climate change.

 

What the NI Energy Strategy says

The Northern Ireland Executive’s Energy Strategy, The Path to Net Zero Energy recognises that heat networks can play an important role in reducing carbon emissions from heating. The strategy commits to exploring opportunities to decarbonise existing heat networks and to supporting trials and demonstration projects using a range of low-carbon energy sources, including geothermal energy and, where feasible, waste heat.

By enabling low-carbon heat to be supplied to homes, businesses and public buildings, heat networks can help reduce reliance on fossil fuels and support Northern Ireland’s transition to a cleaner energy future. They are considered one of a number of technologies that can contribute to meeting the region’s net zero ambitions while supporting a secure and sustainable energy system.

Progress so far

The Department has been considering policy for the long-term role that heat networks could play in delivering secure, affordable and low-carbon heating.

In 2021, Northern Ireland contributed to the UK's National Comprehensive Assessment of the Potential for Efficient Heating and Cooling, which identified areas with potential for district heating networks across the UK.

In 2022, the Department for the Economy consulted on proposals to introduce a new regulatory framework for heat networks in Northern Ireland. The consultation considered how to strengthen consumer protections, improve market oversight and support future sector growth. Following the consultation, the Department confirmed its intention to develop a heat network regulatory framework for Northern Ireland.

The Climate Change Act (Northern Ireland) 2022 established legally binding targets for reducing greenhouse gas emissions. Heat networks can support delivery of these targets by enabling the use of low-carbon and recovered heat sources in places where they are technically and economically viable.

The Climate Change Committee has also identified heat networks as one of the technologies that can contribute to reducing emissions from heating in Northern Ireland.

In August 2026, the Department published a further consultation, Heat Networks in Northern Ireland: Protecting Consumers and Setting up Regulation, seeking views on proposals for a new regulatory regime for heat networks. The proposed framework would replace the existing Heat Network (Metering and Billing) Regulations 2014 (HNMBR), which are anticipated to be revoked in 2027, and establish a foundation for future regulation of the sector in Northern Ireland.

Legislation/regulation

The HNMBR in 2026 in Northern Ireland require fair and transparent billing of customers on heat networks, through accurate billing requirements, and for heat network suppliers to notify DESNZ of their heat networks’ attributes. Further information on the requirement can be found at Regulations: heat networks (metering and billing) - gov.uk

Developments in Great Britain and Ireland

Great Britain

The UK Government introduced the Energy Act 2023, establishing powers to create a comprehensive regulatory framework for heat networks across the UK. In Great Britain, these powers have been used to introduce the Heat Networks Market Framework, which gives Ofgem responsibility for regulating heat networks.

Republic of Ireland

The Irish Government is also developing a regulatory framework for heat networks through the proposed Heat (Networks and Miscellaneous Provisions) Bill. The legislation aims to support the growth of heat networks while providing protections for consumers and setting clear rules for the sector.

Northern Ireland 

In August 2026 the Department published its proposals to introduce a locally led heat network regulatory framework in Northern Ireland.  The proposed regulations would establish the regulatory framework for heat networks in Northern Ireland. They would provide the Utility Regulator functions as the heat network regulator, introduce oversight of heat network operators via an authorisation regime, strengthen consumer protections, and create new requirements for reporting and provision of information. The regulations would also provide a formal role for the Consumer Council in supporting heat network customers and would ensure that existing protections relating to metering and billing continue under Northern Ireland legislation. 

Case studies

The Energy Strategy Action Plan 2022 report references ground source heat pumps providing communal space heating and hot water for social housing providers and a geothermal project on a university campus to provide heating and cooling across several buildings on the one site.

Belfast City Council is investigating the potential for a new large low carbon heat network in Belfast as part of its Local Area Energy Plan.

Belfast City Council launches Northern Ireland’s first Local Area Energy Plan

John Thompson & Sons Ltd, a large feed milling operation in North Belfast operates a Combined Heat and Power plant to provide electricity and heat to its feed milling operations.  It is now developing proposals to use the waste heat from its CHP and processing to support a heat network in North Belfast, with off-takers including the Mater Hospital and Ulster University Belfast Campus.

North City District Heating Network - The Very… | IN2 Engineering

Looking to the future

The Department intends to continue heat network policy development in Northern Ireland with the intent of bringing forward further consumer protection, and industry regulation, as the industry develops in Northern Ireland.

The heat network industry in Northern Ireland is small, and largely fossil fuel based. The Department intends to work with public and private sectors to find ways to make heat network development more investable in Northern Ireland, to bring the decarbonisation and other benefits of heat networks to consumers.