Question reference: S6W-23962
- Asked by: Liam McArthur, MSP for Orkney Islands, Scottish Liberal Democrats
- Date lodged: 15 December 2023
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Current status: Answered by Patrick Harvie on 15 January 2024
Question
To ask the Scottish Government what the estimated capital cost will be of meeting its existing heat network targets, and what proportion of this capital cost it has committed to providing (a) to date and (b) in its Budget for 2024-25.
Answer
Based on available evidence, we estimate that the cost of achieving the targets is up to £1.4 billion for the 2027 target, a further £3.7 billion for the 2030 target and a further £1.1 billion for the 2035 target.
Much of this cost will need to be met by the private sector and the Scottish Government is working to introduce a strong policy and regulatory framework to underpin that investment. The extent to which individual projects require public subsidy will vary from project to project. To date, through Scotland’s Heat Network Fund and the Low Carbon Infrastructure Transition Programme, Scottish Government has committed approximately £62.7 million in capital funding for the construction of heat networks. SHNF is a demand-led programme meaning future funding requirements will be dependent on projects with viable business cases and committed co-investors progressing to capital readiness – based on the current pipeline, we expect to allocate around £25mn to projects in 24/25.