Cheshire East Council has partnered with renewables developer ENGIE to develop district heating networks, promising to save local businesses money.
The two entities will form a new company, to be called Cheshire Energy Networks, which will promote the development of efficient district heating networks in east Cheshire. Local houses and businesses will be to plug into the network to replace traditional boilers and access hot water or steam.
Cheshire East Council is one of 24 local authorities to receive a share of a £1.5 million Department of Energy and Climate Change fund to develop low-carbon energy projects, and the new company will build on the council’s existing low-cost energy scheme, Fairerpower.
Council leader Rachel Bailey said the development placed it in a “strong position” to secure low carbon power in the future.
“Cheshire Energy Networks is a further addition to the Council’s portfolio of energy-saving initiatives and we look forward to working with ENGIE to develop a low-cost district heating infrastructure, exploiting carbon neutral or low-carbon sources,” she added.
Paul Rawson, energy solutions chief executive at ENGIE, meanwhile lauded the potential of district heat networks to “deliver real benefits for UK towns and cities”.
“This partnership utilises the breadth of expertise within ENGIE Group to help Cheshire East Council deliver strategic and transformational outcomes,” he said.
Cheshire East falls within one of six areas in the UK sitting atop a geothermal belt which is claimed to be capable of generating around 4.6 million GWh of zero-carbon heating. The council is currently working with Keele University to research better use of the geothermal belt.
Late last year former energy minister Lord Barker claimed that district heating networks would be the “big development” of this decade, while formal network plans for London remain high on the wish list of environmental groups ahead of next month’s mayoral election.