Gareth Jones BSC(HONS)
Managing Director, FairHeat
gareth.jones@fairheat.com

Lucy Sherburn, MENG
Senior Engineer, FairHeat
lucy.sherburn@fairheat.com

Jake Adamson MEng(Hons), MCIBSE
Consulting Engineer, FairHeat
jake.adamson@fairheat.com

Abstract

The Heat Network Technical Assurance Scheme (HNTAS) is to be a performance-based assurance scheme to ensure that certain performance outcomes are achieved.

One core principle of HNTAS is to be proportionate, with the effectiveness of the assurance process balanced against the cost of compliance.

Research has been undertaken to determine the cost of not having a technical quality assurance (TQA) scheme in place, in order to enable an upper bound to be calculated for the cost of HNTAS, so the scheme is cost effective.

To facilitate this, data was taken from networks that have been through optimisation studies (HNOO and HNES) as the opportunity to improve the performance of those schemes provides an initial proxy for the gains that would be expected from a TQA process.

An assessment was then made of what base market performance levels are, referencing: HNOO and HNES data; data from a 2016 SBRI study of 30 networks; and data from recent design reviews. This data was used to establish benchmark levels of performance. These were compared to levels of performance from networks that have been through TQA, together with improvements identified in optimisation studies, to establish the overall NPV expected from HNTAS.

The direct benefits of assurance have been identified through reductions in CAPEX, heat losses, pumping energy consumption, O&M costs, and generation efficiency improvements.
Overall, the total NPV of HNTAS has been calculated to be £11k per dwelling, with a direct benefit of £8k and expected savings of £460 per dwelling.