Heat in Buildings: progress report 2023

Working with UK and local government

Local Heat and Energy Efficiency Strategies (LHEES)

Local Heat and Energy Efficiency Strategies (LHEES) are at the heart of a place based, locally-led and tailored approach to the heat transition. These local Strategies will underpin an area-based approach to heat and energy efficiency planning and delivery. LHEES Strategies will set out the long-term plan for decarbonising heat in buildings and improving their energy efficiency across an entire local authority area.

The Scottish Parliament passed our legislation in April 2022 which requires all local authorities to publish a Local Heat and Energy Efficiency Strategy and Delivery Plan by the end of 2023 and update them on a five-year basis. We published guidance regarding what is required to fulfil this duty in October 2022. Accompanying the Strategies will be Delivery Plans, which will be developed in partnership with key stakeholders and provide a strong basis for action for local communities, government, investors, developers and wider stakeholders, pinpointing areas for targeted intervention and early, low-regrets measures.

Local authorities are making good progress with their LHEES ahead of the statutory deadline and are beginning to consult on draft Strategies and Delivery Plans. We continue to engage closely with local authorities and are providing support through capacity building training, in-person visits to raise awareness of LHEES at a senior level and providing feedback on draft LHEES. We are also working to align our delivery programmes with the emerging LHEES Delivery Plans. For example, our Heat Network Support Unit is working with local authorities to take the indicative heat network zones identified through LHEES and develop them into projects through feasibility and business case support.

UK Government role

Our ambitious plans in Scotland will be affected by actions on the part of the UK Government, whose announcements in September about slowing or dropping some key heat in buildings policies and targets could have implications for Scotland’s climate ambitions, including on jobs and investment in clean heat.

We continue to press the UK Government to: 

• follow through on its commitment to publish proposals to rebalance energy bill costs, while ensuring those at risk of fuel poverty are supported, so that the running costs of clean heating systems are comparable to fossil fuel systems
• make a clear commitment to the Clean Heat Market Mechanism
• fulfil the commitment for a collaborative approach with the Scottish Government (and other Devolved Administrations), as urged by the Climate Change Committee
• bring forward the 2026 gas grid decision (on hydrogen), removing uncertainty
• continue to support and engage with the Clean Heat Forum.