THE roll-out of central heating districts across Scotland offers major commercial benefits to the Scottish business community, a report has found.

Research by Scottish Enterprise has confirmed there are currently 9,886 properties connected to district heating schemes, which provide heating to buildings from a single source through insulated pipes, in Scotland.

With a target to lift that to 40,000 homes by 2020, it highlights a major opportunity for Scottish businesses and investors. These range from companies that dig up the roads and build the infrastructure to firms in the supply chain, including technology providers.

This commercial prospect is in addition to the environmental and financial benefits district heating is said to bring, as systems can be based on renewable technology such as biomass boilers.

Stephanie Clark, policy manager at Scottish Renewables, said: “Scotland’s ambitious climate targets mean we must drastically reduce the amount of carbon emitted by our society. District heating schemes offer an opportunity to do that, and also to reduce energy bills – particularly relevant when more than one in three Scottish households are living in fuel poverty.”

The Athletes’ Village at last summer’s Commonwealth Games in Glasgow’s east end, since being retrofitted into a mix of affordable and social housing, is one of several new-build housing projects to adopt the approach.

Major projects to install central heating districts are under way or are being planned at some of the country’s biggest universities of Glasgow, Strathclyde, Glasgow Caledonian and St Andrews, as well as housing associations.

Ms Clark said: “Glasgow already leads the way in district heating, with schemes at the Commonwealth Games Athletes’ Village and several housing developments, as well as projects underway at the city’s universities.

“That experience means the city, and the wider Scottish heat sector, could benefit from the work that must be done in the next five years if we are to hit our district heating target.”

One housing project in Banchory, Aberdeenshire, is looking to power a district heating network from a biomass boiler or potentially a geo-thermal source.

With many heat networks currently based on combined gas heat and power, Ms Clark signalled the importance of renewable power underpinning the roll-out of central heating districts.

“As heating accounts for 55 per cent of our energy demand, we really need to move to renewable and to low-carbon sources of heat to achieve our heat target, which is 11 per cent,” she said.

“The more district heating projects that come further that are renewably sourced, the better.”

The report suggests the 103 projects now being planned will require 190km of heat networks, with the investment required ranging from £85m to £190m.

It acknowledges that central heating schemes involve a “high initial capital expenditure” up front, but states this can be offset by “secure and stable long-term profitable operations for multiple decades.” Ms Clark said: “The high capital costs are a barrier ... but I think the schemes we have got going on in Glasgow and across Scotland show that it is possible.”