Energy efficiency, zero emissions and low carbon heating systems, microgeneration and heat networks - skills requirements: consultation analysis

5. Heat Networks

Context

5.1 The Heat Networks (Scotland) Act was passed unanimously by the Scottish Parliament and received Royal Assent on 30 March 2021. It is the first legislation of this kind in UK, and forms part of the Scottish Government's response to the global climate emergency. The Act will stimulate the deployment of heat networks in Scotland by introducing supportive regulation, which will increase investor, consumer and supply chain certainty and confidence. A significant package of regulation must now be brought forward to implement the legislative framework provided for in the Heat Networks (Scotland) Act.

5.2 The Heat Networks Act sets statutory heat network deployment targets, requiring 2.6 terawatt hours of output by 2027 and 6 terawatt hours by 2030. Heat networks in Scotland are expected to create new demands on the supply chains needed to design, install, and commission and maintain these networks. To understand this better, the Scottish Government commissioned research through Energy Saving Trust to identify skills gaps and training needs within the sector. The Heat Network Skills in Scotland Report was published in May 2020.

5.3 The research identified the skills gaps in the Scottish heat network supply chain and compiled a list of colleges/universities with an interest in, and the potential to, expand their curriculum content on heat networks to begin to address the identified skills gaps:

• Project management of heat networks, delivery and operation (e.g. understanding of heat network design, how to procure contractors, stakeholder engagement).
• Heat network design (e.g. most efficient design of pipe routes, low temperature networks, design for retrofit of networks into older buildings)
• Installation and optimisations of heat networks (e.g. extrusion welding for steel pipes, ability to install heat interface units, training on understanding design principles).
• Technical operation and maintenance (e.g. maintaining heat interface units, understanding of building energy management systems, calibrating internals with flow return requirements with different pressures).

5.4 In addition, there is ongoing work to develop technical standards for heat networks which will form a core part of the regulatory regime so that the Scottish Government can design out early on any inefficiencies and consumer detriment arising when networks are poorly specified. Technical standards are also expected to help develop new supply chains in Scotland and drive down costs.

5.5 In partnership with the UK Department for Business, Energy and Industrial Strategy (BEIS), the Scottish Government are investigating options for developing a common standard that would apply across Great Britain. The long term intention is to develop technical standards which can be certified against which will provide further opportunities for further qualifications in Scotland.

Question 5

What are your views on our plans for developing heat network skills? For example, are there any gaps in heat network skills that we have not identified?

5.6 Over half of respondents provided a response to the two separate points asked at Question 5 (56%). A relatively large proportion either left the question blank, had no comment to make, did not have a "strong opinion", or did not consider there to be any gaps in heat network skills over and above those identified in the Consultation Document (44%).

Broad support for the proposals for developing network skills

5.7 There was broad support expressed across consultation responses for the proposals covering heat network skills in Scotland.

5.8 Here, there was recognition: of the "significant" role and contribution of heat networks "on the path to decarbonisation"; that heat networks are a "fundamental part of the solution to reaching net zero"; and that "with a strategic objective of increasing heat networks across Scotland, the identified skills gap must be rectified".

5.9 There was acknowledgement that there was not a clear training route currently in place, and that this resulted in a lack of consistency of provision and limited specialised qualifications and heat network training.

"...there is no current specific and recognised certification route into heat networks", and that training in heat network specific knowledge is usually "developed on the job". NIBE Energy Systems UK

5.10 There was wide "endorsement" of the use of the Energy Savings Trust's 2020 report to help guide and inform plans for developing heat network skills. This included a variety of comments that confirmed that Scottish Government plans "reflect the main skills gaps identified in the Energy Saving Trust report".

5.11 Tighean Innse Gall did, however, note that "these are not the priority for the Outer Hebrides. We have the most dispersed community anywhere in Scotland, with 9 people per square kilometre in homes not always appropriate for heat networks".

5.12 Sustainable Energy Association made wider reference to, and was supportive of, the UK Government Green Jobs Taskforce (recently established to set the direction for the job market as part of the transition to a high-skill, low carbon economy) which outlined three levels of specialist skills required for a heat network project:

• Design: project management, design engineering and supporting professions (legal, financial, commercial).
• Build: project management, construction and commissioning.
• Operate and Maintenance: project management, engineering, operator and technician skills.

5.13 The collaboration between the Scottish Government and BEIS to work with the BSI to scope out the possibility of developing a common standard that would apply across Great Britain was also widely welcomed.

5.14 Wider feedback in support of the Scottish Government proposals for developing heat network skills are reflected in the extract of respondent quotes below:

• The proposals are "sensible and necessary"…. "It is vital that these skills are available locally to help reduce operational costs and maintain security of supply for end users". (Energy Saving Trust).
• The proposed plans appear to be "well developed" (Perth and Kinross Council Housing Improvements).
• The development of technical standards "should help develop new supply chains in Scotland and drive down costs". (Warmworks Scotland).
• "We fully support the plans to develop skills requirement for heat networks. These are missing from the industry and will be essential to set standards". (NAPIT Registration).
• "The ADE is supportive of the proposals covering heat network skills in Scotland, and endorses the use of the Energy Savings Trust's 2020 report as guidance". (The Association for Decentralised Energy).
• "The plans reflect the main skills gaps identified in the Energy Saving Trust report and we don't think that there are any gaps" (Glasgow City Council).
• "Solar Energy Scotland applauds Scottish Government on putting together a comprehensive development plan that meets demand and covers the skills needed for delivering heat networks". The organisation also noted that "certain renewable technologies have been excluded or marginalised in the development of heat network designs. Solar Thermal, for example, which operates at a lower temperature than most existing networks currently require for initial feed-in sources. In future, it is imperative new Heat Networks should be designed with renewable sources of heat in mind and skills requirements amended accordingly".

Institutions to support the development of heat network skills

5.15 A common theme that emerged across consultation responses related to the list of colleges and universities identified with an interest in, and the potential to, expand their curriculum content on heat networks to begin to address the identified skills gaps (as identified in the Energy Saving Trust report):

• Colleges - Glasgow Kelvin College, West College Scotland, Edinburgh College, and South Lanarkshire College.
• Universities - Glasgow Caledonian University and Heriot-Watt University.

5.16 There was general agreement that "working in partnership with the six institutions outlined in the Consultation Document should allow successful development of appropriate training courses", and that these colleges and universities "represent a good way for developing heat network skills" in Scotland.

5.17 Wider issues were raised regarding institutions that could help address the known skills gaps (e.g. by Glasgow City Council, Scottish Land and Estates, Solar Energy Scotland, The Association for Decentralised Energy). The points raised have been grouped as follows:

• That it would also be important to consider identifying other institutions given that "most (of the six identified) institutions lie in the central belt".
• Linked to the point above, it was considered important that "opportunities are available for those living and working in rural communities to be able to take advantage of the proposed courses". Further, that "contractors living in other areas of Scotland, particularly the North East and Highlands and Islands regions should have the opportunity to undertake these courses at a facility close to them".
• That there would need to be an "adequate" number of institutions offering courses to keep up with the expected increase in demand for skilled workers within the heat network industry.
• That additional "skills bases should be scoped though zoning/LHEES in areas where heat networks are identified as the most cost-effective decarbonisation solution in a given area".

Gaps in heat network skills not identified in the Consultation Document

5.18 Circa half of respondents that answered Question 5 either raised general points or explicitly identified gaps in heat network skills not identified in the Consultation Document. The main themes, rather than individual points, have been grouped and reported on below.

Review wider evidence base and take stock of ongoing discussions elsewhere to help identify any wider skills gaps of relevance in a Scottish context

5.19 There was reference to the BEIS Heat Network Skills Review (2020) (e.g. by MCS Charitable Foundation and MCS Service Company Ltd, Scottish Power, The Association for Decentralised Energy). More specifically, it was suggested that the Scottish Government could review the BEIS report to identify additional skills gaps in the heat networks sector of relevance in a Scottish context, namely:

• Limited recruitment pool due to being a less visible sector and roles being less clear.
• Lack of skilled senior roles.
• The breadth of skills required for some roles within the heat networks sector make it challenging to find individuals with the right blend of experience.
• The project management skills gap extends to specific gaps across finance, legal, planning and architecture roles.
• The construction and design skills gap extends to specific gaps across pipe layers, welders, and IT.
• Software and IT skills: with many heat networks now being controlled digitally, data scientists and software engineers will be required to build the machine learning algorithms and develop the platforms that process customer payments and monitor the efficiency of networks.

5.20 Tweeddale Energy Efficiency Supply Chain Development Project (c/o Southern Upland Partnership) added that plans to develop heat neatwork skills should include "the legal and financial aspects of establishing heat networks, especially in the context of local/community operated systems and/or ESCOs^[1]".

5.21 Further, Worcester Bosch highlighted that early discussions were taking place in England around Heat Assurance that might identify other skills gaps, as reflected in the company's quote below:

"These providers would need to be highly skilled and it is of particular concern that there may only be a very small number of such providers currently. If Scotland adopts similar schemes in the future, this skills gap would also need to be addressed. We believe there could be a role for manufacturers to support installer training and there are some initial exploratory discussions with Building Engineering Services Association about this".

5.22 There was recognition that heat networks is a "dynamic area", and that as the industry grows, the skills required would likely change and evolve. The point raised was that new skills (and a greater range of skills) might be required to be "be added in line with the learning curve" and go "beyond what are thought of as traditional heat network skills". This was further expanded on by The Association for Decentralised Energy.

"Both development of new and retrofit of existing heat networks will require knowledge of emerging, low carbon generation technologies (for example, ground/water source heat pumps and geothermal), as well as more advanced network monitoring and efficiency solutions. The Scottish Government should keep this in mind when considering the skills and supply chain ramp up required to deliver on the ambition set out in the Heat in Buildings Strategy". The Association for Decentralised Energy

The role of local government in delivering District Heating Schemes

5.23 There were a few comments that highlighted specific points on the role of local authorities, and more specifically on the resources within local government (e.g. skills, knowledge, expertise) to support the development of heat networks. Aligned to this, was acknowledgement of the new duties placed on local authorities to deliver and operate District Heating Schemes (DHS). The points raised are reflected in the organisation quotes below.

"The lack of skills and resources within local authorities, housing associations and developers have been barriers to successful deployment which needs to be addressed". Scottish Power

"There is no acknowledgement in the skills gaps to recognise the new duties placed on local authorities, the expectations from their finance and management in delivering DHS and in the operation of DHS. It is essential that the Scottish Government addresses this…..local authorities have not yet been informed of their options in this respect and therefore are not in a position to make informed decisions at a corporate level. Without explaining these options local authorities are more likely to stumble towards an end goal they do not fully understand and in that process, there will be many mistakes made and opportunities missed". The joint response from The Energy Poverty Research Initiative, Common Weal The Built Environment Asset Management Centre, Glasgow Caledonian University

"…few planning authorities feel they have the resources, in terms of skills, knowledge and expertise to support development of heat networks; especially when it comes to assessing district heating feasibility proposals. This may lead to outsourcing work to external consultancies, which can result in higher resourcing pressures. There is also a need to provide elected remember training in regards to this matter. This needs to be understood in the wider context of diminishing resources for planning departments, which across Scotland have suffered disproportionately from budget cuts". RTPI Scotland

Understanding the next generation of Heat Networks

5.24 There were a couple of specific references to the importance of having clear definitions and a shared understanding of the next generation of heat networks, as illustrated in the respondent quotes below.

"Consultants are currently producing reports which use terms freely due to lack of clear definitions such as first, second, third, fourth and fifth generation DHS. The Scottish Government should urgently issue, through their planning process, clear definitions of fourth and fifth generation DHS". The joint response from The Energy Poverty Research Initiative, Common Weal The Built Environment Asset Management Centre, Glasgow Caledonian University

"There are significant gaps in the plans for heat network skills. Currently, training refers to high temperature heat networks only, and it must be amended to include training in Ambient Heat Networks and 5th Generation Heat Networks. The Scottish Government risks training a generation of designers unable to understand the next generation of Heat Networks". The Kensa Group