District energy development in liberalised markets: situating UK heat network development in comparison with Dutch and Norwegian case studies

Many national energy policies envisage residual and renewable heat sources with district heating as a component of sustainable energy systems. There is however limited empirical evidence about facilitation of development in the context of liberalised markets and diminished local government control over direct service provision. Recent attempts to stimulate district heating have had variable outcomes in different countries. Using five case studies, we ask why heat network development in the UK takes a relatively piecemeal and fragmented form in comparison with the Netherlands and Norway, countries whose heating sectors are comparable with the UK and where district heating provision is limited. We argue that energy market liberalisation has been enacted differentially, resulting in different political and economic governance structures: in comparison with the UK liberal market economy, the more coordinated market economies of Netherlands and Norway retain greater capacity for collaboration between energy utilities, localities and states, resulting in stronger foundations for district energy. Implications for UK governance are considered.