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is more costly than investing in other incumbent heating infra- structure. Typically, infrastruc- ture investment is perceived as low-risk, low-return; however, due to the risk pro le of the heat networks market, investment in heat networks is o en less at- tractive than investment in other infrastructure. The introduction of regula- tion to address these risks and ensure positive consumer outcomes, coupled with nan- cial support such as from the government's Heat Networks Investment Project in England and Wales, will help to make investment in heat networks more attractive and boost much- needed growth in the sector. The prevalent idea amongst industry is to introduce a licensing scheme whereby an organisation must hold a licence to own or operate a heat network. This would mean that organisations become subject to the rules of the licence, and that the regulator has a means by which to hold the organisa- tion to account. Embedded in the licence conditions could be requirements around consumer protection, transparency of pric- ing, network maintenance and supplier of last resort processes, for example. Licensed operators could also gain access to other ben- e ts that will reduce demand risk or the cost of development, including the right to connect certain zoned properties to the network, statutory undertaker rights, and nancial support. What role do heat networks play in a decentralised energy system? As a technology and fuel-agnos- tic infrastructure, heat networks are consistent with all net zero scenarios. They can use various types of generation, including waste heat, electric heat pumps, biomass boilers, gas CHP, and in the future, hydrogen. Current understanding sug- gests there is no silver bullet for decarbonising heating in the UK, and we must press on with this understanding. It's likely that a strategic, patchwork ap- proach will enable us to ensure that the best solutions are directed to the most appropriate areas of the UK. As we strive to decarbonise our energy system, we must see greater empowerment for local action. Local actors that un- derstand local context are well placed to assess demand and opportunity, and make deci- sions about the future of energy in their area. Local authorities should thus be empowered to direct national government policy; one emerging way to go about this is through heat and energy eˆ ciency zoning. Heat networks are o en the most suitable choice for decar- bonising dense urban areas, and areas with harder-to-decarbon- ise buildings and lower EPCs. Areas with these characteristics could thus be zoned for heat networks, with policy targeted to support their deployment. With the electri cation of heating in some areas of the UK, the need for electricity system ‰ exibility will increase as we strive to avoid the costs associ- ated with network reinforce- ment and the carbon associated with meeting peak demand. Heat networks will have a role to play in adding ‰ exibility to the broader energy system, pro- viding a further buŠ er between properties and the grid through thermal storage and inertia in the system, allowing networks to respond reactively to signals from the grid. In answer, heat networks will play a role in decarbonising urban areas and play an ena- bling role for decarbonising the electricity system. Already, heat networks save 700,000 tonnes of CO2 emissions each year (about the same as the carbon from heating 300,000 UK homes for a year), and that's with heat networks meeting just 2 per cent of demand in the UK. As the cost of investing in low carbon technology reduces, and we strive towards 17 per cent in the context of regulation, carbon savings are expected to soar. NETWORK / 23 / DECEMBER 2019 / JANUARY 2020 How do utility fi rms navigate the complex and unknown territory that is the future? Global confl ict and political upheaval, at home and abroad, the acceleration of new technologies and the existential threat of climate change add up to a rapidly changing world. Utilities of today – if they are to become utilities of tomorrow – will need to anticipate and adapt to the challenges and opportunities thrown at them. Are they up to the stretch? This is where our new campaign, Utility of the Future, fi ts in. Over the next few months – leading up to the Utility Week Live Conference and Exhibition in Birmingham on 19-20 May 2020 – Utility Week and Network will be exploring the changing landscape. In a series of fi ve key themes, they will be looking at what is coming down the tracks – and what may be over the horizon. We will be talking to those in the business, of course, but we will also be looking for wider input, talking to experts drawn from further afi eld to present the facts, debate the issues and answer some of the questions. The campaign's fi ve key pillars are: climate change; customers; business models and workforce; regulation ( see left); and technology. For each of these pillars, the titles will be running in-depth articles, research, podcasts and events. On climate change, Utility Week has kicked off with the results of a survey looking at what it means for utility fi rms to meet the stretching target of delivering net-zero greenhouse gas emissions by 2050, what the public thinks of it and how much support utilities can expect in their quest to decarbonise and conserve water. It's a mixed picture. The good news is that utilities do not have to convince the public of its importance; they already know – but getting people to change behaviours won't be easy. Nor, sadly, will it be easy to convince them of the part utilities are playing in the transition. For a utility of the future – the journey starts here. UTILITIES LOOK ING TO THE FUTURE IN THE AGE OF UNCERTAINTY