Installation and maintenance licences for heat networks

We propose Scottish installation and maintenance licences will be granted to an organisation, not individual networks. For example, if one organisation was responsible for building or maintaining several networks across Scotland, the organisation would only require one licence and that could apply to all of its networks. This responsible organisation could be defined in a few ways such as a company, Special Purchase Vehicle (SPV), Joint Venture (JV) or Energy Service Company (ESCO). The origin of the organisation does not alter the ability to apply for a licence should they wish to utilise the rights and powers for installing and maintaining heat networks. It will be the responsibility of the organisation to assess their requirement for these rights and powers and whether they wish and need to apply for the licence.

For some heat networks with more complicated ownership structures there may be more than one organisation which would want to apply for a licence – for example if one organisation needed to access land to maintain apparatus, but another organisation was going to conduct road works related to the same network. Again, it will be the responsibility of each organisation concerned to decide whether they wish to apply for a licence or not.

We propose Scottish installation and maintenance licences will apply to all types of heat network, as defined by the Heat Networks (Scotland) Act 2021. That legislation defines two types of heat network, district heat networks (where heat or cooling is distributed to more than one building, such as a residential street) and communal heat networks (where heat or cooling is distributed to multiple units within a single building, such as a block of flats).

However, under our licensing proposals it does not matter whether a network is district or communal. The responsible organisation will be able to choose whether they wish to apply for a licence and, if granted, use the rights and powers provided for any type of network they install or maintain.

Similarly, licences may apply to networks which use alternative technologies, such as shared ground loops or ambient loops. Companies which build or operate any type of heat network will be eligible to apply for a licence, if they feel the rights and powers are required.

Licences will only apply to heat networks in Scotland. Companies based elsewhere in the UK or the world will be able to apply for a Scottish installation and maintenance licence if they need one. However, if it is granted the licence will only apply to their heat networks in Scotland. Heat Networks in England and Wales will be covered by a separate licensing regime.