Powering the transition: delivering low-carbon heat at scale

Author Chris Masters - senior programme manager, Public Sector Decarbonisation team, Salix

Across the UK, organisations are moving quickly to decarbonise buildings. Schools, hospitals, leisure centres and housing estates are installing heat pumps and replacing fossil fuel heating as part of the transition to net zero. 

But many delivery teams are encountering the same challenge: the electricity network. 

Low-carbon technologies such as heat pumps, EV chargers and on-site generation increase demand on the local grid. That means projects increasingly depend on the capacity and readiness of the electricity network and on how quickly connections can be delivered. 

Understanding how Distribution Network Operators (DNOs) work is therefore becoming essential for anyone delivering decarbonisation projects. 

In our recent webinar with experts from Northern Powergrid and UK Power Networks, we explored the practical realities behind this shift - from connection processes and network planning to the challenges organisations face when delivering projects on the ground. 

One message came through clearly: engaging with the electricity network early can make the difference between a project progressing smoothly and one facing delays. 

Start the network conversation early

If there was one consistent message from the discussion, it was the importance of early engagement with the local network operator. 

Many projects begin with a focus on building upgrades, funding applications or technology selection. But electricity capacity and connection requirements can quickly become the factor that shapes cost, timeline and delivery. 

Engaging with the DNO early can help project teams: 

• understand available capacity at a site
• identify whether network upgrades or reinforcement may be required
• plan realistic project timelines
• avoid unexpected delays later in the programme 

Early conversations also help network operators understand future demand and plan infrastructure upgrades accordingly. 

In practice, this early dialogue often provides clarity that can prevent significant delays later in the project lifecycle. 

Understanding the connection landscape

Another theme that emerged during the webinar was the complexity of the connection landscape. 

Project teams are often faced with a decision about whether to work directly with their Distribution Network Operator (DNO) or through an Independent Distribution Network Operator (IDNO). 

Both routes are valid, but they operate differently. 

DNOs operate within Ofgem’s regulatory framework, which provides transparent charging structures and a consistent process. For many public sector organisations, this clarity is important when managing public funding and governance requirements. 

IDNOs are also regulated by Ofgem but can sometimes offer different commercial arrangements. In some cases, they may spread the value of network assets across their lifespan, which can reduce upfront connection costs. 

The key point is not that one option is better than the other. Rather, understanding both options early allows project teams to choose the route that best supports their delivery plans. 

Aligning funding with network delivery

Funding programmes such as the Public Sector Decarbonisation Scheme (PSDS) are enabling many organisations to deliver large-scale building upgrades. 

Connection and upgrade works can often be funded where they directly support the approved project. However, maintaining clarity around project scope remains important. 

Where project designs evolve or additional infrastructure is required, early conversations with Salix Relationship Managers can help ensure projects remain aligned with funding requirements. 

This reinforces the need for strong coordination between project teams, funders and network operators throughout the delivery process. 

Preparing the network for low-carbon heat 

The UK is expecting significant growth in heat pump installations in the coming years as buildings transition away from fossil fuels. 

This naturally raises questions about whether electricity networks are ready to support this level of electrification. 

Network operators participating in the webinar emphasised that planning for this transition is already underway. 

Across the sector, DNOs are: 

• analysing network data to identify areas of increasing demand
• reinforcing infrastructure when new applications are received
• improving digital systems to manage connection applications more efficiently
• exploring flexible solutions where upgrades are still being planned