Joining The Leeds PIPES Heat Network
Connecting new-build properties to a heat network is an unfamiliar process to many. We sat down with 54North’s Director of Assets and Growth to find out the story behind connecting their Railway Street Development to the Leeds PIPES heat network.
54North Homes is one of the fastest-growing housing associations in the country, with more than 4,000 homes across Yorkshire serving around 7,000 customers. Their new £12m Railway Street development delivers 58 much-needed sustainable and affordable homes in the heart of Leeds, with hot water supplied by the Leeds PIPES network.
The site was purchased from Leeds City Council through a competitive bidding process open to housing associations and 54North were successful, but the construction phase brought some significant challenges. Joanna Chambers, Director of Assets and Growth explains: “The scheme began as a viable project, but after COVID build costs increased by around 20% over a 2-year period. This created real challenges”
The housing association was able to overcome this hurdle by securing additional grant funding to make the project viable and took a long-term view on connecting to the heat network.
Joanna continues, “Whilst district heating can mean higher upfront costs, the long-term benefits often outweigh that. You avoid having to decarbonise the heating system later, so although the capital cost is greater now, it can be the best investment in the long run.
“You’re also helping to extend the city’s heat network, which is positive for everyone involved. For me, it’s about understanding what’s driving the decision and making sure that feeds into the process.”
In addition to the construction costs for the development, 54North were acutely aware of the cost-of-living challenges facing their residents. The rates of fuel poverty in Leeds are above the national average, with around 16% of homes falling into this category. Addressing consumer costs was a primary concern for the housing association.
“Affordability for our residents is a huge part of the decision-making process”. Joanna continues, “It’s also vital to think about future retrofit implications, for example if we’d gone ahead with gas boilers. Factoring in that retrofit liability is important.”
Heat networks can be an unfamiliar technology, so it’s important to have a strong onboarding process and the necessary expertise to support you connecting. The housing association built a strong team consisting of their main contractor and M&E consultant, while gaining specialist advice in core areas such as legal guidance around the connection agreement.
The Council and Vital Energi were also instrumental in supporting 54North through key areas such as buildability, sequencing and contributing. “Both Vital and the Council were easy to deal with and there weren’t any real problems. Vital Energi provided economic modelling, which was presented to us and really helped inform and support our decision-making process.”
Joanna finishes by explaining, “While heat networks might feel unfamiliar, there are already over 4,100 properties connected to Leeds PIPES, so it’s well established. Once we committed, it was exciting to be part of such a sustainable heat network.”
