Content

11.1

Sheffield is a participant in
the Department of Energy Security and Net Zero’s (DESNZ)
Advanced Zoning Programme, which aims to;

·      
Identify the opportunities for accelerating the
scale and pace of zonal heat network delivery with
cities

·      
Support the acceleration of zonal scale heat network
delivery, aligned with emerging zoning policy

·      
Capture lessons learned, establish standardised
outputs and provide feedback for policy development from key
stakeholders.
 
This paper;

·      
provides an update to the TRC Policy Committee on
the Advanced Zoning Programme (AZP), an overview of the AZP
reference project and Zonal Outline Business Case, including the
submission of a grant funding application to the Green Heat Network
Fund (GHNF);

·      
seeks approval to proceed to the development of the
procurement process utilising the AZP’s route to market
models developed by DESNZ;

·      
seeks delegated authority to the Director of
Investment, Climate Change and Planning to take a decision on the
route to market once further legal and commercial work has been
undertaken through the AZP.

 

 

11.2

RESOLVED
UNANIMOUSLY: That the Transport,
Regeneration and Climate Policy Committee:-
 

(a) 
notes the update on the Advanced Zoning Programme
(AZP) and conclusions of the Zonal Outline Business Case
(ZOBC);
 

(b) 
notes the update on the grant funding submission to
the Green Heat Network Fund (GHNF) of £10m and approve
acceptance of the grant, if successful, under the Grant Memorandum
of Understanding (MOU) terms of which the funding is expected to be
given;
 

(c) 
delegates the power to finalise the Grant MOU to the
Director of Investment, Climate Change and Planning, should the
grant application be successful;
 

(d) 
approves commencement to next stage of the AZP to
procurement of a Development Partner; and
 

(e) 
grants delegated authority to the Director of
Investment, Climate Change and Planning to determine the route to
market strategy for the procurement of the Development Partner of
the AZP reference project and wider zonal area
opportunity.

 

 

11.3

Reasons for Decision

 

 

11.3.1

Heat networks form a
significant opportunity to decarbonise heat and as detailed in the
council’s Growth Plan also provide an opportunity for green
growth through jobs, skills and supply chain
opportunities.

 

 

11.3.2

Continued participation in
DESNZ’s AZP provides access to funded support, enabling
Sheffield to be at the forefront of heat network developments and
readiness for forthcoming heat network zoning legislation as well
as contributing to the city’s decarbonisation.

 

 

11.4

Alternatives Considered and Rejected

 

 

11.4.1

Alternative Option 1: Do
nothing
Under this option, the council
doesn’t prepare for forthcoming heat network zoning
legislation and buildings remain on gas boilers. This option is
rejected as it misses decarbonisation targets as well as negatively
impacting on local air quality. In addition, jobs, skills and
supply chain opportunities are missed. Under this scenario, the
council also loses any support and guidance that the participation
in this programme to date has offered.

 

 

10.4.2

Alternative Option 2: Heat pump
roll-out
Under this option, connecting
buildings to new or expanded heat networks are not considered
priority and instead heat decarbonisation is achieved through the
roll-out of heat pumps. This option is rejected as the Heat Network
Zoning policy is based on designating zones where heat networks
provide the lowest cost route to heat decarbonisation compared to
air source heat pump, so whilst for some buildings heat pumps may
offer the best solution, over the proposed zonal area it is
considered that heat networks provide the best option for heat
decarbonisation.