Heatropolis

Project Data

Start date:

01/04/2023

End date:

30/10/2028

Budget:

£11,798,614.00

Summary

Heatropolis is pioneering a first-of-its-kind commercial and technical solution to create a smarter, more flexible electricity and heat network. By combining flexibility services, innovative connection arrangements, thermal storage and smart controls, the project aims to reduce electricity demand from low-carbon heat networks at peak times, helping to avoid unnecessary network upgrades.

What is the project about?

Low-carbon heat networks are set to revolutionise how we heat our homes and buildings, reducing our dependence on fossil fuels. By 2050, DESNZ projects that these networks could meet over 18% of the UK’s heat demand for buildings. However, the increasing electricity demand from heat networks presents a growing challenge, especially given the current disconnect between heat network design and Distribution Network Operator (DNO) planning. 

Heatropolis addresses this gap with a groundbreaking, multistage framework that aligns the design and operation of heat networks with the needs of the electricity system. By integrating smart controls, flexibility, and intelligent planning, the project aims to significantly reduce peak electrical loads and avoid expensive network reinforcements. Heatropolis represents a smarter, more coordinated approach to energy planning, delivering better outcomes for customers, networks, and the Net Zero transition. 

How we’re doing it

Heatropolis is developing and trialling a first-of-its-kind technical and commercial framework to bridge the gap between heat and electricity networks. By enabling more intelligent heat network design and operation, the project will deliver greater flexibility and reduce electrical loads—cutting the need for unnecessary DNO reinforcements and accelerating the transition to Net Zero. 

Over three winters (2026, 2027 and 2028), Heatropolis will test its approach at three distinct trial sites: a large mixed-use development, a medium low-density predominantly residential area, and a small high-density residential community. These trials will allow us to refine and optimise the framework for wider application. Work is currently progressing across all three project archetypes with Trial 1 currently underway. Its mission: build a solid baseline that will unlock full end-to-end technology integration in Trial 2. 

Trial 1 is aiming to test a range of combinations of thermal storage and heat pumps in the energy centre, to understand the right level of capital required to get the best value peak demand reduction. At the building level, Trial 1 is testing smart controls on both domestic and commercial properties.

Alongside the trials, we are exploring commercial solutions which are designed to counterweight the investment of Heatropolis. The initial business case highlights Heatropolis’ potential to deliver significant financial and environmental benefits to the UK by reducing peak electrical demand and emissions. To unlock this, there is a funding gap for heat networks to implement the solution, which we will explore further throughout the duration of the project.   

Designed to be scalable and replicable across the UK, Heatropolis will support the rollout of low-carbon heat networks while helping the energy system meet rising demand more efficiently. Ongoing engagement with residents and industry stakeholders will ensure the solution is fit for purpose, addressing real-world challenges and delivering benefits for consumers and networks alike. 

What makes it innovative

Heatropolis addresses a critical gap in the energy transition: the untapped potential for low-carbon heat networks to operate flexibly and support the wider electricity system. While smart controls, thermal storage, and innovative customer tools have been used in other sectors, their application in managing peak loads for heat networks remains largely untested. Similarly, the integration of flexible demand connections with the delivery of flexibility services has yet to be designed and trialled for this context. 

Currently, Heat Network Operators have little incentive to shift or reduce demand during peak times. Heatropolis seeks to change that by unlocking new flexibility from both operators and end users – positioning heat networks as active participants in the energy transition rather than passive loads. 

The project is powered by a consortium of experts: Metropolitan, a leading UK heat network owner and operator; Passiv, specialists in smart energy systems and automation; and Guidehouse, global experts in energy strategy and policy. In collaboration with UK Power Networks, Heatropolis is uniquely placed to deliver a replicable, scalable solution that reimagines the future of heat and power as a coordinated, cost-effective, and climate-aligned system. 

What we’re learning

Heatropolis has already demonstrated the potential to transform how low-carbon heat networks interact with the electricity system, delivering operational savings, cutting carbon and easing the burden on consumer bills. 

During the Alpha phase, a live trial on the King’s Cross heat network tested the real-time impact of smart building controls on heat demand. Conducted in collaboration with Passiv and Metropolitan, this trial showed that strategic investment in smart controls and thermal storage could cut peak heat network demand by up to 85%. This has major implications for the electricity network, freeing up capacity, reducing the need for unnecessary reinforcements and helping customers transition to electric heating more affordably. 

Now in the Beta phase, Heatropolis is deepening its work across four key areas: 

  • Technical Performance: Monitoring smart controls and thermal storage in action to assess how well they reduce electrical and heat demand, and identify any technical barriers.
    • Learnings so far: In Trial 1, we are experimenting with various air source heat pump and thermal storage configurations to understand their effect on total electrical demand. 
  • Commercial Arrangements: Testing new models that incentivise flexible operation of heat networks—helping unlock new forms of flexibility from both operators and end users.
    • Learnings so far: Our latest analysis shows that Heatropolis has the potential to deliver billions of pounds in benefits to Great Britain, primarily through reducing peak electrical demand and cutting emissions. However, unlocking these benefits will require closing a significant funding gap for heat networks to implement the proposed solutions. 
  • Consumer Engagement: Capturing feedback from households to understand their experience and willingness to adapt behaviours in the shift to low-carbon heating. 
    • Learnings so far: To better understand customers’ experiences and attitudes towards their heat networks, flexibility and smart heating controls, we surveyed over 900 heat network customers across Great Britain. These insights highlight the interest of customers towards flexibility and smart meters, especially at a reduced cost. Key findings include:
      • 73% are comfortable using digital tools or smart controls to monitor or manage their heating.
      • 71% are open to flexibility heating especially if it leads to lower bills or rates 
      • 74% care about the environmental impact of their heating supply
      • Those who often/always struggle to pay their bills are less satisfied with all aspects of their heating system 
  • Environmental Impact: Measuring emissions savings and energy efficiency gains, quantifying Heatropolis’ contribution to Net Zero. 
    • Learnings so far: Our latest analysis shows that Heatropolis has the potential to deliver millions of tonnes of CO2e of reduction in emissions to Great Britain. Most of this benefit is due to Heatropolis helping heat networks to connect to the electricity network faster, therefore enabling heat networks to shift away from natural gas sooner. 

Reports & Documents

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