Scottish Policy

The heating and cooling of homes and businesses in Scotland account for approximately 50% of greenhouse gas emissions and cost £2.6 billion annually. As this accounts for such a large percentage of emissions, it is clear that this will need to be addressed in order to meet Scotland's ambitious renewable energy targets.

The Heat Policy Statement was published in 2015, which brings together and sets out Scottish Government's framework to deliver low-carbon heat to households, businesses and communities, along with promoting improvements in energy efficiency.

A report produced by the Energy Saving Trust on behalf of Scottish Government shows Scotland is continuing to make progress towards its energy target of 11% of the country's heat demand being met by renewable generation. This objective is complemented by the target to reduce the total final energy consumption in Scotland by 12% (against a base line of the average energy consumption in 2005-07), and underpins our ambitious climate change targets including a 80% minimum reduction in greenhouse gas emissions by 2050 and a world leading 42% reduction by 2020.

​Heat networks are one of the ways which have been recognised as a means of meeting these targets. Scotland aims to deliver 1.5 TWh of heat by district energy schemes, having over 40,000 homes connected by 2020. As a result, a range of loans, grants and government incentives have been established to stimulate the growth of this emerging market. The available schemes will be explored in the financial analysis.​