A city heating network has been awarded £1 million to help cut energy bills and provide cheap power to thousands of homes across Aberdeen.
The announcement coincides with today’s meeting of the Scottish Government in the city.
Aberdeen Heat & Power Ltd will expand the network to non-domestic properties with commercial heat sales revenues ring fenced to heat households in the city.
The system already supplies around 2,000 council flats in 26 multi storey blocks, low rise sheltered housing complexes as well as 13 public buildings.
The combined heat and power scheme captures heat when electricity is created. Once channelled through underground hot water pipes and pumps, heating and hot water is pumped out to homes.
CHP is the simultaneous generation of electric power and useable heat in a single process. A CHP system generates electricity locally and captures the heat produced to provide space heating and hot water to nearby buildings. This achieves an efficiency of around 85% for the combined production of electricity and heat at the point of use.
The new funding comes from the Scottish Government’s District Heating Loan Fund, which has awarded a total of £2.7 million to 12 projects across Scotland.
Aberdeen Heat & Power Ltd (AH&P) is a ‘not for profit’ company set up by the local council in 2002 to develop and operate district heating and Combined Heat & Power schemes in their area. Its completed projects include 288 flats in 4 high rise blocks of flats in the Stockethill area and a Hazelhead sheltered housing scheme, Hazelhead Pavilion, Hazelhead Academy and swimming pool.
Ian Booth, General Manager, Aberdeen Heat and Power, said: “This loan will help our drive to increase the capacity of the district heat network to deliver affordable heat to domestic and non-domestic properties, and to continue to alleviate fuel poverty and reduce the carbon footprint of the city.”
Scottish Social Justice Secretary Alex Neil added: “This significant funding will help Aberdeen Heat and Power in its drive to deliver reduced bills across the city, at a time when many people are struggling due to rising energy prices.
“Tenants have reported that their typical fuel costs have been reduced by up to 50% over the previous heating system, while carbon emissions from these buildings have been reduced by 45%.“