Lessons from European regulation and practice for Scottish district heating regulation

ClimateXChange commissioned Changeworks and the Centre for Energy Policy, University of Strathclyde to review existing European regulatory models and identify learning from each that are relevant to the Scottish context. The outputs will add to a body of existing research which will inform the Scottish Government’s proposals regarding regulation in the coming years.

This report details the findings from a review of seven European DH regulatory models, including a contextualised evaluation of each model. The research used evidence gathered through a literature review and interviews. 

As a product of the research, four key components of an effective regulatory system for district heating are identified as:

• Long term planning and commitment to DH development
• Successful use of tools which stimulate market development and investment in the sector
• Co-ordination of national and municipal governments, and scope for industry interests to have a say in certain regulatory issues
• Flexibility to allow for innovation, and account for market changes

These are the key lessons to be considered for the introduction of district heating regulation in Scotland.