Cost Analysis of a Typical 4th and 5th Generation Heat Network

Scottish Enterprise commissioned Ramboll to analyse the actual capital costs (operational and connection costs are not in scope) and value across the supply chain for design, build and delivery of 4th and 5th generation heat networks and any developing and/or potential cost/supplier trends. The report also includes analysis of the current supply chain, including where equipment is currently being manufactured

Ramboll’s own extensive knowledge together with data from a number of sources including suppliers, network operators and engineering firms were analysed and compared.

The results are analysed and presented in 4 sections. • Energy centre Costs – Key Take-Aways include: - The estimated total cost of a 21MW 4GDH in Scotland (inc a sewer source heat pump, electric boilers and solar PV) is approx. £26m (£13 million excluding uplifts) equal to a cost of 1300 £/kW installed capacity. - The cost of the electrical connection and transformers is expected to be significant for energy centres with fully electrified heat production. • Waste Water Deep Dive – Key Take-Aways include: - The study finds that the cost of a 4G WWHR system ranges from £1700 to £3,500 per kW. 5G systems range from £4,000 to £4,600. The variation in cost is somewhat due to economies of scale, as the higher cost per kW applies to smaller systems. Cost data for 5G systems could only be obtained from one supplier, leading to less variation in price. • Distribution Costs – Key Take-Aways include: - Trench excavation dominates the total cost of the network. - Cost of plastic pipework is found to be highly variable depending on manufacturer and system specification. • Case Studies – 3 case studies are covered. 3GDH in Aberdeen, 5GDHC in Glasgow & 5GDHC in New York State. Supply Chain Analysis – Key Take-Aways include: • There are substantial resources and significant growth potential for constructing and installing networks in Scotland. Numerous Scottish companies are engaged in these projects. • Skills and competencies within O&G sector are transferable to the heat network sector.

No recommendations.