FEASIBILITY

Suitable energy strategies for a development require compliance with key industry documents to achieve carbon targets whilst ensuring new heat networks operate efficiently. The London Plan/Local Plan requirements, updated SAP requirements, Building Regulations Part L requirements and GLA/Local Energy Assessment guidance must be considered at the feasibility stage to allow for the development of effective and compliant energy strategies.

FairHeat provide support in the following areas:

• Overall energy strategy through a lifecycle risk assessment of each proposed option.
• System peak load sizing
• Network routing strategy, to ensure efficient use of development space and avoid oversizing utility connection applications.
• Ensuring CP1 2020 is considered and met throughout feasibility stages through checklists and statements of applicability, therefore providing our clients with the assurance that their heat networks are undergoing similar processes and meeting the same technical requirements that has been used as a basis for the development of HNTAS.

FairHeat support in this stage is key as often decisions are made here that have major limitations and implications over the heat network going forward (particularly heat generation strategy, oversizing and architectural considerations).

When developers are connecting to wider heat networks operated by ESCos, there are additional considerations, particularly with regards to technical requirements and heat supply and connection agreements.

FairHeat will be able to feed into this stage to ensure that:

• Any commercial, operational and legal risks within the connection and supply agreements are highlighted.
• Appropriate assumptions are made and calculations provided to determine any charges through to the developer (e.g. connection charge, cost of heat, service charge, etc.).
• ESCo technical requirements are reasonable and compatible with design of the development, leveraging any client ERs to ensure requests are reasonable.
• Suitable support is provided in negotiations for changes to the agreements.
• Any derogations due to deviations from ERs and technical requirements are clearly documented and tracked.

For organisations managing multiple heat networks, achieving consistent, high performance across the portfolio can be a significant challenge. Our Portfolio Review service provides a comprehensive evaluation of network performance, identifying key inefficiencies and prioritising high-risk, underperforming sites. By conducting structured site audits and data-driven assessments, we help clients develop a targeted performance improvement plan, ensuring that investment is focused where it delivers the greatest impact.

Our structured review process ensures a clear and actionable approach to portfolio-wide performance optimisation:

• Network Performance Evaluation: Conducting site audits and data analysis to assess efficiency, reliability, and compliance gaps across multiple networks.
• Prioritisation of Key Issues: Ranking sites from highest to lowest priority based on specific KPIs, such as heat loss, return temperatures, operational reliability, and resident complaints.
• Performance Improvement Plan Development: Creating a structured remediation plan, focusing on the worst-performing, highest-risk sites first to maximise impact and cost-effectiveness.
• Regulatory Readiness & Milestone Compliance: Providing guidance on aligning with HNTAS requirements and other heat network regulations.

FairHeat brings a deep technical understanding of diverse heat network typologies, allowing us to accurately diagnose inefficiencies across various system designs. Our structured and quantified risk assessment process ensures that client priorities are strategically addressed, even when site information is limited. Using our proven methodologies and expert insights, we deliver clear, pragmatic recommendations that optimise performance within budget constraints while ensuring long-term compliance with current and upcoming regulatory requirements.

As the technical authors of the Heat Network Optimisation Guidance (HNOG), FairHeat is at the forefront of industry best practices for heat network performance improvement. We take a strategic approach to delivering work packages, ensuring that optimisation opportunities are considered early in the feasibility stage to maximise impact. Our proven expertise in delivering successful optimisation studies has made us a trusted partner for HNES-funded projects, supporting clients in securing government funding for network efficiency upgrades.

Poor heat network performance can lead to high energy bills, excessive maintenance costs, resident complaints, and unreliable heat supply – all of which negatively impact stakeholders. FairHeat’s Heat Network Optimisation Study provides a comprehensive evaluation of operational networks, identifying key inefficiencies and delivering targeted, cost-effective improvement strategies. Through site audits, heat loss assessments, and techno-economic analysis, we help clients quantify the benefits of optimisation measures, ensuring more efficient, reliable, and financially sustainable heat networks.

Our Optimisation Study provides a detailed, data-driven approach to diagnosing and resolving network inefficiencies:

Performance Evaluation & Site Audit: Conducting a detailed assessment of network operation, identifying key inefficiencies affecting heat loss, peak loads, and overall system stability.

Heat Loss & Techno-Economic Analysis: Comparing current system heat losses against potential improvements, quantifying cost savings and carbon reductions.

Customised Work Packages for Improvement: Developing bespoke technical solutions that address system inefficiencies, including equipment upgrades, control system refinements, and operational adjustments.

Scenario-Based Cost Assessments: Providing high-level financial modelling to compare the cost-effectiveness of different improvement strategies.

Stakeholder Engagement & Reporting: Presenting findings through detailed reports and client presentations, ensuring clear, actionable recommendations.

As the heat network sector moves towards net-zero, operators must identify the most cost-effective and technically feasible decarbonisation pathways for their networks. Our Heat Network Decarbonisation Option Appraisals provide a detailed feasibility assessment of different renewable energy and low-carbon technology integration strategies, ensuring networks are future-proofed, regulatory-compliant, and optimised for efficiency. This provides a clear technical and financial evaluation of potential solutions, including:

Feasibility Assessments: Evaluating site-specific suitability for integrating low-carbon technologies, such as air-source heat pumps (ASHPs) and waste heat recovery.

District Network Connection Viability: Assessing the potential for linking to a wider district heat network, including cost-benefit analysis and technical compatibility.

Options Appraisal Report: Delivering a detailed analysis of the most suitable decarbonisation strategy, balancing carbon reduction, operational efficiency, and financial viability.

Renewable Energy Integration: Identifying opportunities to incorporate solar thermal, biomass, or heat pump technologies to reduce reliance on fossil fuels.

Risk & Impact Analysis: Reviewing regulatory compliance, capital investment requirements, and long-term operational implications of each decarbonisation pathway.

FairHeat’s expert-led appraisals provide practical, data-driven insights to help operators make informed investment decisions for decarbonising their networks. Our deep technical knowledge and proven track record in low-carbon heat network design ensure that clients receive clear, actionable recommendations aligned with both regulatory requirements and long-term operational goals.

Accessing grant funding is essential for heat network operators looking to enhance efficiency, improve performance, and decarbonise their systems. FairHeat provides expert support in preparing highly successful applications for key funding schemes, including the Heat Network Efficiency Scheme (HNES). Our deep understanding of funding requirements and technical expertise ensures that clients maximise their chances of securing critical financial support for network upgrades and optimisation projects.

We guide heat network operators through the entire grant application process, ensuring a strong technical and financial case for funding approval.

Heat Network Efficiency Scheme (HNES) Applications:

FairHeat’s Optimisation team has supported over 40 organisations, including Housing Associations, Local Authorities, Private and Public Sector bodies, in securing over £12 million in HNES funding.

• Expert assistance in preparing, managing, and submitting funding applications.
• Proven success in securing funding for optimisation studies and capital works.
• Support for addressing technical queries raised during application reviews.

Building Connection Suitability Surveys:

• Assessments of buildings’ compatibility with proposed heat networks.
• Temperature lowering tests to determine necessary system upgrades and integration feasibility.

With extensive experience in grant-funded heat network projects, FairHeat provides tailored, expert guidance that aligns technical feasibility with funding priorities. Our unmatched technical expertise, strong track record of successful HNES applications and deep understanding of funding frameworks enables clients to secure funding efficiently and confidently.

The regulatory landscape for heat networks is evolving, with upcoming milestones that operators must comply with to meet industry standards. The introduction of the Heat Network Technical Assurance Scheme (HNTAS) and other regulatory requirements will set clear expectations for compliance, accountability, and performance in the sector. Ensuring that your heat network is aligned with these changes is critical to achieving operational efficiency and long-term regulatory compliance.

FairHeat provides comprehensive milestone compliance assessments to evaluate the status of your heat network and ensure it meets current and upcoming regulatory requirements. Our service includes:

Assessment of Current Compliance Status

• Review of the heat network or portfolio in its present state
• Identification of requirements to reach the next compliance milestone

Identification of Non-Compliance Risks

• Clear demarcation of system elements
• Definition of responsibilities across stakeholders
• Identification and designation of duty holders
• Technical assessment of key performance indicators (e.g., metering)

Guidance for Future Compliance

• Strategic recommendations to prepare for regulatory milestones
• Detailed support for compliance with HNTAS

As the Technical Authors of HNTAS and key influencers in other industry guidance such as CP1 and the BESA HIU Test Regime, FairHeat is at the forefront of shaping industry standards. Our in-depth expertise in Quality Assurance of heat networks ensures that you receive the most insightful, technically robust, and practical guidance to navigate the evolving regulatory landscape with confidence.

FairHeat’s Techno-Economic Modelling (TEM) service provides a detailed analysis of network performance, costs, and carbon impact, allowing developers to evaluate project feasibility and financial viability with confidence.

Our TEM process streamlines project assessment by integrating real-world data, advanced energy modelling, and market-driven costing insights to deliver:

• Accurate Viability Assessments: We evaluate heat demand, carbon performance, and financial feasibility to provide a comprehensive view of project potential.
• Optimised System Design: Using hourly load modelling, we develop a conceptual network and energy centre design, tailored to project-specific conditions.
• Market-Driven Costing & Efficiency Analysis: Our model incorporates live market data from operational schemes to ensure high confidence in cost and efficiency projections.
• Refined Project Development Strategies: We identify key anchor loads, phasing approaches, and financial strategies to optimise investment decisions.
• Scenario-Based Optioneering: Our in-house modelling enables bespoke development of operating strategies, comparing different energy generation solutions, operating strategies and network configurations.

FairHeat’s TEM delivers a high level of accuracy by integrating real-world data, ensuring confidence in system efficiency, heat losses, and long-term performance projections.

Our strategic expansion planning approach enables district heating developers to identify financially viable routes for network growth, supporting scalable, future-proofed solutions.

With industry leading expertise in funding opportunities and requirements, we help clients align with grant funding opportunities to maximise scheme viability. Additionally, our comprehensive risk analysis highlights key sensitivities in financial models, allowing for targeted refinements that strengthen decision-making.

By partnering with FairHeat, developers gain clear, actionable insights that de-risk projects and accelerate the path to commercialisation.

Reviewing location suitability, developing a deliverable and viable energy centre site and building designs at the feasibility stage, is fundamental to the delivery of any DH project.

FairHeat provides end-to-end design management, covering everything from initial site appraisals to full planning applications and construction contract design packs. Our team develops tailored, optimised solutions, ensuring that energy centres are cost-effective, compliant, and future-ready.

Our Energy Centre Design service ensures a structured, risk-mitigated approach to network development, covering:

• Multidisciplinary Design (RIBA 1-2): Full energy centre design development, ensuring alignment with technical, regulatory, and operational requirements.
• Survey Specification & Procurement: Management of site surveys, ensuring accurate data collection for robust design decision-making.
• Stakeholder Engagement: Collaboration with local authorities, developers, and ESCOs to ensure alignment on planning, delivery, and compliance.
• CAPEX Modelling & Cost Analysis: Accurate cost projections to support investment decisions and funding applications.
• Utility Applications & Infrastructure Planning: Managing grid connections and service applications, ensuring a seamless integration with existing infrastructure.
• CDM Principal Designer Services: Oversight of design risk management, ensuring safety, compliance, and buildability.
• Programme, Delivery & Procurement Strategy: Strategic advice to optimise project timelines, mitigate risks, and streamline delivery.

FairHeat’s experienced District Heating Design team develops energy centre designs in parallel with network design, allowing for adaptability to demand variations and evolving project needs.

We take a proactive approach to risk management, ensuring that energy centres are designed to perform reliably under challenging conditions and tight timeframes.

To optimise cost efficiency and leverage specialist expertise, we work with a trusted network of specialist consultants across the UK, ensuring competitive pricing, localised expertise, and added value to the community.

Development of concept network designs with reasonably de-risked routes are an essential stage in any district heating project. At early-stage feasibility, FairHeat undertake the following route proving activities:

1. Look to minimise total length of network as far as possible, unless justified through significant service congestion or obstacles that warrant alternative routes/diversions

2. Undertake preliminary pipework sizing and determination of system type (steel vs. PEX, Single vs. Twin, insulation series) to allow sufficient level of detail during the route planning stage.

3. During route planning and RIBA 1-2 design, the following risks are assessed. This risk assessment shall form the basis of the optimum route selection and the residual risks requiring further mitigation through detailed design are clearly identified:

• Buried network challenges: Highlight areas and constraints for buried network route, utilising a wide variety of sources C2 utilities maps, OS map, historical maps, route walks to identify existing utilities, to develop comprehensive understanding of high risk areas for buried network routing.
• Above ground challenges: such as high traffic areas, red light routes, building foundations, land ownership, arboriculture constraints.
• Complex crossings: Asses any complex infrastructure crossings (rail, water, bridge etc.) required by the preferred route, and advice on the risks and mitigations required at detailed design stage.
• Passing through third party owned land.

Identifying and avoiding high risk areas, combined with pipe sizing philosophy that optimises pipe capital and operational costs, also ensures the accurate financial modelling of the buried network elements.

A well-defined commercialisation strategy is essential for transforming district heating concepts into funded, viable, and operational projects.
At FairHeat, we provide expert guidance on funding mechanisms, market entry strategies, and delivery pathways, ensuring projects move seamlessly from feasibility to execution.
Our experience in project commercialisation helps clients navigate public and private sector funding opportunities, assess financial risks, understand stakeholder challenges and determine the most effective delivery models.
FairHeat supports district heating developers by offering strategic advice that de-risks projects, streamlines decision-making and the commercialisation phase of a project. Our approach includes:

• Public Sector Funding Support: Maximising opportunities from schemes like the Green Heat Network Fund (GHNF), the Public Sector Decarbonisation Scheme (PSDS), and Heat Network Efficiency Scheme (HNES).
• Private Sector Investment Guidance: Identifying viable financing models, including ESCO partnerships, third-party investments, and local authority funding structures.
• Risk Assessment & Mitigation: Evaluating financial, operational anchor load customers and key stakeholder risks, enabling developers to make informed, strategic investment decisions.
• Route-to-Market Strategies: Advising on delivery models, procurement structures, and contracting frameworks to ensure smooth project progression.
• Regulatory & Policy Alignment: Ensuring compliance with evolving industry regulations, positioning projects for long-term success.

Connection of existing buildings onto a district heating network requires a detailed technical assessment to ensure system compatibility and identify connection strategy.

Typically, existing buildings are not operating at the temperatures required to readily connect to a district heating network. Understanding the required building side works to facilitate a connection at an early phase of the customer journey is essential. These are typically not as onerous as it may initially seem.

FairHeat provides comprehensive building and secondary system evaluations, defining the scope of works required and providing cost estimates needed for successful network connections. Our approach enables developers, local authorities, and building owners to make informed investment decisions, ensuring technical feasibility and financial viability from the outset.

Our structured assessment and pricing process provides a clear roadmap for building integration into district heating networks. Our services include:

Building & Secondary System Assessments:

Site surveys to evaluate plant rooms, space heating, and hot water systems, ensuring they meet heat network requirements.

Scope of Works Development:

Identifying necessary modifications for seamless integration, including plantroom layout, building entry points, and pipework configurations.

Cost Estimation & Financial Planning:

• RIBA 0 Order of Cost Estimate: Using internal QS rates and contractor benchmarks for accurate early-stage budgeting.
• RIBA 1 Technical Report: Providing detailed findings, assumptions, and scope validation.
• Public Sector Decarbonisation Scheme (PSDS) Costing: Developing order-of-cost estimated to support funding applications.

Temperature Lowering Testing:

Winter testing to refine emitter replacement scope, providing greater cost certainty and system efficiency insights.

Hot Water System Transition Strategy:

Evaluating whether hot water solutions remain on low-temperature hot water (LTHW) or transition to electrification.

FairHeat brings unparalleled expertise in heat network integration, ensuring that building systems are fully compatible before connection.

Our data-driven approach and real-world experience allow us to develop precise and realistic cost estimates, reducing financial and technical risks for clients and facilitating a smoother overall connection.

Securing grant funding can be a critical step in enabling the deployment, expansion, and decarbonisation of district heating projects.

FairHeat provides expert support in preparing and managing compelling applications for key government funding schemes, including the Green Heat Network Fund (GHNF) and the Public Sector Decarbonisation Scheme (PSDS).

Our tailored approach ensures that projects are aligned with funding criteria, maximising the likelihood of approval and securing the necessary financial support for network development and building upgrades.

Our services includes:

• End-to-End Application Support: Assisting in the strategic development, writing, and submission of high-quality funding applications.
• Project Management & Coordination: Overseeing the preparation of technical documentation, costings, and feasibility studies to meet funding requirements.
• Maximising Available Funding: Identifying opportunities to optimise grant allocations for initial deployment, network expansion, and building decarbonisation measures.
• Stakeholder Engagement & Justification: Supporting the business case development and engaging with funders to demonstrate project value.
• Strategic advice: Ensuring clients understand how to make an application competitive, and the impacts/trade-offs that technical and commercial decisions have on an application’s competitiveness.

FairHeat have a market leading, proven track record of consistently securing grant funding for district heating projects.

We have led the technical development and techno-economic modelling of over £150 million of successful Green Heat Network Fund (GHNF) applications, and £33 million of the Public Sector Decarbonisation Scheme (PSDS).

By providing support to both district heating developers and their customers, we significantly enhance the overall viability of early phase district heating networks, unlocking delivery and future growth of these networks.