District Heat Piping Costs Rocket March 6, 2009

Some recent reports have suggested that the price of district heating and cooling pipes is rocketing.

We’ve recently had experience, while working on a feasibility study for a distributed energy network in Lambeth and Southwark, where the capital costs for the hot and cold water piping were critical in making a financial case for the project. With private capital expected by the LDA to meet the majority of infrastructure investment, this will only prove another stumbling block for London’s burgeoning distributed energy network.

This comes at a bad time with the government’s 10GW CHP target (pdf) looming on the horizon in 2010, with London city district-wide heating hoping to provide a key contribution. The price increases may also have ramifications for new developments hoping to connect into existing networks. This is an approach favoured by the London Plan and, consequently, many London borough planning authorities.