Nottingham City Council’s long-term options for the future of its district heating network are set to come under further consideration following the completion of a scrutiny review examining how the system could operate beyond 2030.
A final report by the council’s People, Communities and Environment Scrutiny Committee will be presented on 4 March 2026, setting out findings from a cross-party task and finish group established to examine potential future models for the city’s heat network and make recommendations to the Executive Member for Environment and Sustainability ahead of formal decision-making.
Nottingham’s district heating network has its origins in the early 1970s, when it was created as a joint venture between British Coal and Nottingham Corporation. Following the closure of British Coal, ownership transferred fully to Nottingham City Council in 1995 and operated through EnviroEnergy (Nottingham) Ltd. The service was brought fully in-house in 2022 and is now managed directly by the council.
The network supplies heating and hot water to around 5,000 homes alongside more than 100 commercial premises across Nottingham city centre and St Ann’s, including major sites such as the Victoria Centre, National Ice Arena, Nottingham Trent University, BioCity and the Royal Concert Hall complex.
Heat is generated using energy recovered from approximately 170,000 tonnes of municipal waste processed annually at the Eastcroft Incinerator, producing high-pressure steam which feeds the heating system. Gas boilers provide back-up capacity to maintain supply reliability.
As well as providing heat, the combined heat and power plant generates around 60,000 megawatt hours of electricity each year. Electricity is supplied directly to commercial customers through a private wire network, with surplus power exported to the National Grid.
The scrutiny review was launched in March 2024 to allow non-executive councillors to examine options for the network’s future before proposals are brought to the Executive Board. A key issue is the expiry of existing steam supply arrangements in 2030, meaning decisions on replacement infrastructure or alternative operating models must be taken well in advance due to the scale and lead-in time required for major energy projects.
During evidence sessions held between 2024 and 2025, councillors received briefings from senior officers and executive members covering the condition of the existing infrastructure, technical and financial risks associated with different future options, and ongoing negotiations linked to future heat supply arrangements. Members were told that the work involves complex interdependencies and significant long-term financial considerations for the authority.
The review also examined the council’s legal responsibilities to households connected to the network, particularly where the authority remains landlord, as well as privately owned properties — including former council homes sold under the Right to Buy scheme — where residents may have no alternative heating source. Specialist external legal advice is being sought to clarify these obligations.
Councillors highlighted the importance of ensuring long-term stability and environmental sustainability, noting national government support for expanding heat networks as part of wider net-zero objectives. Funding opportunities are understood to exist for feasibility work, capital investment, performance improvements and external financing arrangements linked to low-carbon heat infrastructure.
A site visit to the London Road Heat Station in September 2025 allowed scrutiny members to review operations first-hand and receive updates on work progressing since Executive Board approval of the project’s direction in November 2024. A dedicated project team bringing together technical, legal and commercial expertise has since been established, alongside new governance arrangements including a District Heating Network Board overseeing programme development.
Comparisons were also made with district heating schemes in other cities, including Bristol, where investment has focused on expanding newer infrastructure using multiple smaller energy plants. Officers advised that Nottingham’s system differs significantly due to its age, scale and reliance on a single large plant, meaning similar restructuring would be possible but likely to involve substantial cost.
Detailed conclusions and recommended next steps are contained within an exempt appendix due to commercially sensitive information relating to potential future operating models and negotiations. The scrutiny report itself does not make final decisions but is intended to inform forthcoming Executive Board reports, where councillors will ultimately determine the long-term future of the network.
The outcome of those decisions is expected to have implications for thousands of households connected to the system, the council’s financial position, and Nottingham’s wider approach to low-carbon heating and energy infrastructure over the coming decades.
