Scottish Government
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Granite City green heat revolution

Funding will help power homes across Aberdeen.

A city heating network has been awarded £1 million to help cut energy bills and provide cheap power to thousands of homes across Aberdeen.

Aberdeen Heat & Power Ltd will expand the network to non-domestic properties with commercial heat sales revenues ring fenced to heat households in the city.

The system already supplies around 2,000 council flats in 26 multi storey blocks, low rise sheltered housing complexes as well as 13 public buildings.

The combined heat and power scheme captures heat when electricity is created. Once channelled through underground hot water pipes and pumps, heating and hot water is pumped out to homes.

The funding comes from the Scottish Government’s District Heating Loan Fund, which has awarded a total of £2.7 million to 12 projects across Scotland.

Social Justice Secretary Alex Neil said:

“This significant funding will help Aberdeen Heat and Power in its drive to deliver reduced bills across the city, at a time when many people are struggling due to rising energy prices.

“Tenants have reported that their typical fuel costs have been reduced by up to 50 per cent over the previous heating system. Carbon emissions from these buildings have also been reduced by 45 per cent.

“The heating system is delivering reduced levels of fuel poverty and eliminating damp conditions, which creates improved health conditions and homes that people now want to live in.

“Last year, the District Heating Loan Fund was increased to £8 million and I would encourage organisations with district heat projects, at all scales, to apply for funding.”

Ian Booth, General Manager, Aberdeen Heat and Power said:

“We are delighted to be able to accept this loan from the District Heating Loan Fund.

“It will help our drive to increase the capacity of the district heat network to deliver affordable heat to domestic and non-domestic properties, and to continue to alleviate fuel poverty and reduce the carbon footprint of the city.

Aberdeen City Council's Communities, Housing & Infrastructure convener, Councillor Neil Cooney, said: "Our combined heat and power scheme is a real success story, with many residents who once had old and inefficient heating systems now enjoying lower bills and warmer homes.

"As the network grows, so do the benefits it provides. Significant savings are being realised on heating costs for several public buildings and the city’s carbon footprint is being cut.

"AH&P has won national acclaim and awards for its pioneering work to reduce fuel poverty.

“The creation of a subsidiary company to work with the private sector will generate additional monies, which will be used to increase the reach of district heating across Aberdeen and befit even more of our citizens."

Notes To Editors

Aberdeen Heat & Power Ltd (AH&P) is a ‘not for profit’ company set up by Aberdeen City Council in 2002 to develop and operate district heating and Combined Heat & Power schemes in their area.

AH&P has been awarded the first higher value loan from the District Heating Loan Fund, as loan applications over the previous £400,000 cap are now being considered on a case by case basis.

In March 2014, Energy Minister Fergus Ewing announced that the district heating loans fund budget would increase by over £4 million, making a total of £8 million available over the two years from 2014 to 2016 .

For more information please contact Ian Booth, Aberdeen Heat and Power on 01224 580058 or 07789980797.

A list of the 12 projects is available at:


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