Scottish Government
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Loan scheme for district heating
A £2.5 million loan fund to support district heating networks and cut emissions is to open for expressions of interest next week.
District heating distributes heat through a network of pipes to provide space and water heating in homes or offices.
The Scottish Government's scheme will offer loans on a commercial basis for both renewable and low carbon technologies. It will be delivered by the Energy Saving Trust and expressions of interest are being invited to match expected demand.
The news comes as figures published today show that renewable heating uptake doubled in the last year. 2.8 per cent of heat demand in Scotland was met by renewables in 2010 - double the 2009 figure of 1.4 per cent and now three times the UK rate. The figures show Scotland is on track to meet its target for 11 per cent of heat to come from renewables by 2020.
Energy Minister Jim Mather said:
"Today's figures are welcome news that Scotland is warming to renewable heating, with more and more individuals, businesses and communities using innovative green energy schemes.
"The largest increase in green heating has been in industrial biomass facilities that make the biggest impact on cutting emissions. We want to see biomass used as efficiently as possible, in heat or combined heat and power schemes, particularly in areas off the gas-grid, making the best use of the available local biomass.
"District heating is much more efficient than traditional heating and can cut emissions and help eliminate fuel poverty for many people. The new loans scheme will be targeted at new or extended district heating schemes, to turn more people on to low carbon heating and green up Scotland."
The £2.5 million district heating loan scheme comes from the Scottish Government's 2011-12 Budget.
Around half of Scotland's heat use is in homes, industrial use accounts for around a third per cent and commercial and public use makes up the rest. In 2009, Scotland produced 1.4 per cent of heat from renewables.
A new heat mapping tool to help councils plan local heat strategies is also due to be published at the end of the month. The map will be a useful tool to help identify opportunities to maximise the use of heat within all planned new developments (industrial, commercial and domestic) and refurbishment projects, including local skills and services. These can include the creation and/or extension of district heating networks, the use of waste heat and low carbon heat/CHP where this could lead to greater opportunities for renewable heat in the future.
The Scottish Government works with the Forum for Renewable Energy Development in Scotland (FREDS) Renewable Heat Implementation Group to deliver actions set out in the Renewable Heat Action Plan and the recently updated heat section of the Renewables Action Plan to help Scotland meet its target of 11 per cent of heat coming from renewable sources by 2020.
An expression of interest form will be available be the EST website from Monday, March 21.
A report to Ministers by the Wood Fuel Task Force is due to published on Monday March 21, updating estimates of wood fibre availability. The report will be available on Forestry Commission Scotland's website.
