‘Plenty of opportunity’ for heat sector growth after EU exit

There is “plenty of opportunity” for growth in the UK’s burgeoning heat sector, despite the UK’s decision to leave the European Union, the Association of Decentralised Energy (ADE) has said.

ADE director Tim Rotheray told Utility Week that although it is “very difficult to actually know precisely what the impact will be”, exiting the EU does not have to hamper the growth of the heating sector.

Local authorities have also sought European funding in the past to support projects, however, the district heating sector was awarded £320 million of support in November’s budget last year which is not European money, and this will be able to support local authorities in its stead.

A key driver for the market is the new housing and building sector, so the effect of the decision on the economy, especially in London, will have an impact on district heating.

Rotheray said it is important that heat is not forgotten during the UK’s negotiations with Europe, and appropriate considerations are given to multinational companies operating in heat to ensure the UK is an attractive place to invest in heat infrastructure in comparison to the EU.

He added that keeping standards such as the European energy efficiency directive would be “helpful”, but actual investment frameworks and mechanisms are already decided on a member state level.

“What we would seek to make sure is that the UK is either more attractive or as attractive as other markets so that the market can continue to grow here so that will be the challenge,” he said.

“Whatever happens we will always have to have an eye on what happens in the European Union because it is our neighbour.”