Overview

Heat network zoning is a national government led initiative to speed up the development of new heat networks across England. The Department for Energy Security and Net Zero (DESNZ) summarise the purpose of heat network zoning as follows:-

Since Putin’s illegal invasion of Ukraine shook the foundations of the energy market, we’ve been exploring how to make our power supply more robust and resilient, while reducing our reliance on fossil fuels imported via volatile global markets.

Heat networks are the perfect example of the type of technology that helps address these issues. By using heat from a variety of different sources, they can reduce the need for fossil fuels and provide lower-cost heat to local areas. That is good news for both consumers and the climate. Already, heat networks provide about 3% of our total heat. But as they continue to spread, that figure could rise to 20% by 2050.

Heat network zoning will be essential to speeding up the development of these new heat networks. By indicating where heat networks are expected to be the lowest cost low-carbon heating option, we hope to catalyse growth where it’s most needed.

We also want to give local areas in England greater certainty and confidence about the best locations for heat networks, so that they can better serve the people that live there. And we want to give developers and investors more certainty about the number of likely connections to networks, to help enable the investment needed to build them. Building confidence in the tangible heat network opportunities will unlock huge investment for the UK.

Heat network zoning will give local communities the tools to accelerate the development of heat networks in their towns and cities. Zoning will ensure that more homes and businesses can have access to greener, cheaper heat sooner by removing the barriers which currently limit the scale and pace of developing heat networks.

Liverpool Heat Network Zone

The city of Liverpool has been heavily involved in the development of heat network zones since 2021. The City Council, with support from advisors such as Harbour Project Management, has demonstrated an ability to deliver and a desire to see heat networks become a solution to providing low cost, low carbon heat.

Heat Network Zoning Pilot Programme (HNZPP)

Liverpool was one of 28 English cities and towns selected to help develop and test a national methodology to identify and designate heat network zones. This involved regular meetings with the DESNZ appointed national team, focusing on accounting for local circumstances and the practical application of theoretical approaches. Much of the work undertaken at this stage has been adopted and helped to shape the forthcoming legislation.

Advanced Zoning Programme (AZP)

Liverpool were one of the few cities to be selected for the DESNZ led Advanced Zoning Programme (AZP), and following strong progress were designated as a first trance city. This has seen funding support from DESNZ to continue to be provided, allowing Liverpool to become one of the first cities in the UK to launch a procurement to select a Zonal Developer, and to also commence a public consultation on the zonal boundary.

Our Involvement

Harbour Project Management have been involved in the development of Heat Network Zoning since the very start. We began supporting and advising Liverpool City Council in 2021 under the HNZPP, and have continued to be involved every since. We undertook the role of Project Manager under the Advanced Zoning Programme, working closely with a team of expert technical and commercial advisors to develop a proposed zone boundary and the feasibility stage design for the initial network.

During the summer of 2025 the opportunity emerged for the Liverpool zone to be accelerated and become a tranche one city under AZP. Our detailed knowledge of the city allowed us to propose a project in the Knowledge Quarter which has since been adopted as the proposed started network for the city centre zone. The viability and deliverability of the Knowledge Quarter Heat Network has meant Liverpool has continued to received government funding, allowing the cities zonal ambitions to progress at pace.

Harbour Project Management continue to support the City Council with the procurement of a Zonal Developer, establishment of the zone, and development of the Knowledge Quarter Heat Network project.