In 2019, Lancaster City Council declared a climate emergency and set itself a target to make the whole district carbon neutral by 2030. The City Council has received £5.3 million from the UK government through the UK Shared Prosperity Fund, to invest over the next three years in projects which improve the lives of local people and the economy and one of those projects highlighted by the authority was to get a Local Area Energy Plan (LAEP).

Energy Systems Catapult was chosen to help the city get its whole systems, evidence-led roadmap – a LAEP in July 2023 and the final plan was signed off by the Council in October 2024.

The innovation

Local Area Energy Planning was developed by the Catapult over 10 years ago to help ensure that a local area’s unique characteristics play a central role in defining what the Net Zero transition looks like. Since then, over 30% of local areas across the UK have either got one or are developing one to support a place-based approach to the energy transition.

This approach sets out the importance of taking a whole energy system approach which is evidence-based and recognises the coordination required across many factors, including different stakeholders, to achieve Net Zero cost-effectively and ensure it is locally led, centring on local opportunities and benefits.

Lancaster City Council wanted a plan to help it support decarbonisation for both communities and businesses across its district. The result is a localised whole energy systems roadmap to decarbonisation which provides an evidence-based investment plan.

The challenge

The LAEP sets out the changes required to transition the Lancaster District energy system and built environment to Net Zero while also addressing fuel poverty. It details what changes are required, where, when and by whom.

It also provides a high-level overview of the likely scale of investment that will be required to achieve Net Zero.

This includes:

• Domestic fabric upgrades – 38,000 domestic properties (approximately 54% of all buildings) are recommended to be retrofitted with fabric upgrade measures
• Low carbon heating – installing heat pumps to 52,000 – 65,000 properties and having approximately 75% of non-domestic building floorspace being heated by heat pumps in the future
• Installation of electric vehicle charge points – It is estimated that 45% of households will not have the ability to charge at home. The LAEP recommends the deployment of up to 1,250 public charge points to help ensure a just transition to electric vehicles whilst enabling active travel, leisure, and tourism.
• Local renewable generation – The district has a significant opportunity to generate renewable energy locally from solar PV and onshore wind. Up to 575 GWh of annual generation is recommended
• Energy Networks: The plan illustrates the importance of investment in the electricity network to ensure there is capacity for the rapid growth of low carbon technologies. The council has been working closely with Electricity North-West to develop the LAEP

The solution

Lancaster District now knows the scale of investment needed to deliver its Net Zero energy transition, whilst also seeking to deliver co-benefits for the local economy such as jobs and skills development. The LAEP addresses electricity, heat, and gas networks, future potential for hydrogen, the built environment (industrial, domestic, and commercial) its fabric and systems, flexibility, energy generation and storage, and providing energy to decarbonised transport e.g., electricity to electric vehicles and charging infrastructure.

From the evidence base provided in the area’s LAEP, Lancaster City Council has set a pathway to deliver a Net Zero energy system for Lancaster District by 2040 made achievable through ‘Local Innovation’. This pathway provides the best balance of a cost optimal Net Zero transition whilst delivering benefits such as jobs, air quality improvements, and fuel poverty mitigation across the district.

A key benefit of the LAEP is that it helps to join up current plans and policies. For example, Lancaster District wanted to consider how to transform its energy systems and align it with the new Local Plan, key policies and other developments such as The Eden project, Morecambe.

Impact

Within three weeks of the Catapult delivering the LAEP plan, Lancaster City Council adopted its LAEP in October 2024, this pioneering new strategy will help the area to shape its future energy planning, reduce carbon emissions and support economic prosperity. It sets out a long-term vision for decarbonising the district by 2040 and looks beyond the council’s own 2030 target for its direct activities.

The main aim of the LAEP is “to establish a fully costed and spatial plan that identifies preferred combinations of technological and local energy system changes that can be made”, this will be done in a bespoke way based on the whole energy system characteristics and stakeholder engagement for Lancaster District.

The LAEP will support the city’s vision for Lancaster District to thrive as a vibrant regional centre in the north west of England, because it will support the city in attracting investment by giving investors an evidence based plan.

Next steps

The next step to build on the LAEP is to set out how the whole district can transition to a low carbon future, and that’s what the LAEP is all about. But it’s not just a blueprint for reducing emissions, it’s a vision for a sustainable future and supporting the local economy.

The city council will need to collaborate closely with key local stakeholders along the way but this is an exciting start to delivering a Net Zero district.

“Stakeholders across Lancaster District have proven themselves to be willing and able to act upon climate change and energy decarbonisation. Lancaster City Council are ensuring momentum and standards are maintained by setting ambitious decarbonisation targets whilst focussing on a just transition. I’m confident that this LAEP gives Lancaster District a robust and de-risked plan which includes their preferred pathway to a decarbonised energy system by 2040. Areas of previous uncertainty such as low carbon heating, roll out of electric vehicle infrastructure, and scale of renewable generation are given more clarity whilst highlighting the key decision points in future. I’m equally confident that Lancaster City Council and local stakeholders are motivated and capable of delivering a pipeline of projects derived from this LAEP.”

Peter Graham, Local Energy Transition Adviser

Client testimonial

“The Local Area Energy Plan is a comprehensive, evidenced blueprint outlining how the district can rapidly reach Net Zero in a way which is both equitable and affordable. Ahead of national energy targets, we aim to support local economic growth in emerging green sectors and enhance the quality of life for our residents. By leveraging resources, embracing technological innovations, and fostering community engagement, this plan outlines how we can create a robust, diversified, and sustainable energy future for Lancaster District for all residents and sectors.

“The Local Area Energy Plan is more than a strategy document; it is a call to action. It embodies our District’s commitment to a sustainable future and sets a clear pathway toward Net Zero. By working together across sectors and with communities, we can build a resilient, sustainable, and vibrant energy future for generations to come. We look forward to you joining us on this challenging yet exciting journey.”

Councillor Gina Dowding Lancaster City Council Portfolio Holder for Climate Action