Decision details

Town Centre District Heat Network (DHN) Phase 2

Decision Maker: Cabinet, Full Council

Decision status: Recommendations Approved

Is Key decision?: Yes

Is subject to call in?: Yes


To provide approval for funding for a study to examine the technical feasibility and economic business case for the Phase 2 expansion of the Town Centre DHN to incorporate properties and developments adjacent to the existing DHN, including assessment of the potential to amend the fuel source from gas to a more sustainable heat source.




That the Cabinet


a)         approves proceeding with the first phase of the study (feasibility) and reallocating £25,000 match funding from the existing £435,000 Town Centre capital budget.


b)         agrees to a new Capital programme scheme for the DHN phase 2 of £94,950 with the balance of £69,950 being funded from Heat Network Development Unit (HDNU) grant.


c)         delegates authority to the Head of Major Projects and Commercial Services in consultation with the Cabinet Member for Environment and Sustainability to review findings of the feasibility study and decide whether to proceed with the second phase of the study (full business case) and earmark a further £55,000 match funding from the Town Centre capital budget for this purpose. (Generic Delegation 7 will be used to enact this recommendation).



Reasons for the Recommendations


a)         In October 2018, Cabinet approved the business case for the Town Centre DHN phase 1 (HPS 15) which is currently under construction.


b)         With the approval of the business case for phase 1, Cabinet also approved the recommendation to:


“Note the projected financial implications for phase 2 of the DHN and that future expansion will be subject to a further report to Cabinet once the capital costs and customer and commercial negotiations have progressed”


c)         With a number of developments in the Town Centre progressing that are potential connections to the DHN phase 2, a prompt examination of the phase 2 feasibility and business case is required.  This will allow a decision on possible future construction to be made.


d)         The Council has also committed to carbon reductions of at least 45% by 2030 and to zero by 2050.  It is therefore timely to examine the technical options and financial implications of switching the DHN from gas to a low carbon heat source.



Report author: Nigel Sheehan

Publication date: 25/11/2021

Date of decision: 24/11/2021

Decided at meeting: 24/11/2021 - Cabinet

Effective from: 01/12/2021

Accompanying Documents: