District Heating Networks in England and Wales: Contracting Framework, Procurement Routes, Key Documents, Risk Allocation and Guidance

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Practice notes

For comprehensive analysis of the regulation, consenting and incentivisation of the net zero energy transition under the laws of England and Wales, see also: Collinson and Hockman on Energy Law: Regulating, Consenting and Incentivising the Energy Transition. That textbook offers further detailed treatment of matters addressed in this Practice Note. This Practice Note examines the contractual architecture for district heating network projects in England and Wales. The topics addressed in this overview include the following:

at an appropriately high level, what district heating networks are
which core project agreements apply to such district heating network schemes
the recurring points that commonly arise when drafting and negotiating those project contracts, and
available guidance on both procuring and operating district heating network projects

In Scotland, the Heat Networks (Scotland) Act 2021, together with later secondary legislation, created a distinct regulatory regime for heat networks. That Scottish system governing district heating networks lies beyond the scope of this Practice Note. For details of the legal and regulatory framework applicable to district heating networks in England and Wales, see Practice Note: District Heating Networks in England and Wales: The evolving regulatory regime.

What are district heating networks (DHN)?

Across England and Wales, DHN deliver...

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Sandy Abrahams

Lux Nova Partners

Sandy Abrahams specialises in clean and low carbon energy projects and UK climate change legislation. She has worked on a wide range of renewable energy deals, including acting on the development of the first utility scale wind farm in the Middle East, advising on utility scale solar farms in Jordan and working on a number of the UK's largest, low carbon district heating schemes. Sandy advises on the full range of project documents required for clean and low carbon energy development providing strategic legal advice to a wide range of clients including the International Renewable Energy Association (IRENA), Total Solar, Lend Lease, Enfield Council, Metropolitan Homes, Pure Leapfrog, Community Energy Scotland and Open Utility. She is also actively involved in policy development, giving evidence at select committees and at government working parties, assisting representative bodies of community energy groups and helping industry to...

Lindsay Edwards

Lux Nova Partners

Lindsay has been involved in the clean energy and low carbon sector since 2013. She brings experience both as a private practice lawyer specialised in advising on emerging energy and low carbon projects, and as a policymaker at the Department of Energy Security and Net Zero (formerly BEIS). Lindsay has worked on a range of renewable energy and low carbon projects, including advising developers and ESCOs on the design and delivery of district heating projects, and providing public and private sector clients with regulatory and structuring advice on decentralised energy generation and storage projects, for example in relation to electricity grid reinforcement projects, and electricity licensing requirements. She has also worked with local authorities and private sector developers on the design and delivery of community energy, garden city and local net zero projects and advised on various e-mobility and smart energy solutions including the...

Web page updated on 21/05/2026

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