The primary aim of the Peterborough Accelerated Net Zero (PANZ) project is to support the transition to a low-carbon future by developing scalable, replicable solutions to accelerate the decarbonisation of energy systems. Specifically, the project seeks to enable local authorities to make data-driven, effective decisions that can help deliver Net Zero outcomes. The project focuses on two key areas: the deployment of rural heat pumps in off-gas communities and the expansion of district energy networks into residential and commercial sectors.

The PANZ project is funded by Innovate UK (IUK), this funding supports a variety of activities, including research, development of new business models, stakeholder engagement, and the creation of blueprints for the deployment of heat pumps and district energy networks. It also covers the tools and platforms needed for data analysis and decision-making to ensure the project’s success.

The innovation

This project is pioneering new approaches to help local authorities make informed decisions to accelerate decarbonisation efforts. It focuses on innovative models to overcome challenges in implementing rural heat pumps and district energy networks.

The challenge

The Peterborough Accelerated Net Zero (PANZ) project addresses two significant challenges in advancing decarbonisation efforts:

Rural, off-gas communities face unique difficulties in transitioning to low-carbon heating systems.

Key challenges include:

• • Supply chain limitations: Limited availability of heat pumps and skilled installers restricts deployment at scale.
  • Cost barriers: High installation and operational costs make heat pumps less accessible for households compared to traditional heating options.
  • Infrastructure constraints: Local electricity networks in rural areas may lack the capacity to support widespread adoption of heat pumps.
  • Consumer trust and awareness: Residents often lack knowledge or confidence in the benefits and reliability of heat pump technology, leading to low adoption rates.
  • Business model inefficiencies: Traditional heating system models do not effectively address the unique needs of rural areas, requiring innovative and tailored approaches to make heat pumps viable.

Expanding district energy systems to residential areas and new commercial markets is essential for achieving local and national decarbonisation targets. However, significant barriers include:

• • Investment challenges: Large-scale energy infrastructure projects often struggle to attract investment due to perceived risks, long payback periods, and limited investor understanding of the technologies involved.
  • Technical and operational complexity: Ensuring efficient integration of district heating systems in diverse urban and suburban areas requires advanced planning, stakeholder collaboration, and innovative technical solutions.
  • Consumer engagement: Lack of awareness and understanding among consumers about the benefits of district energy systems can impede acceptance and adoption.
  • Policy and regulatory alignment: Ensuring that district energy systems comply with evolving regulations and align with council priorities adds complexity to implementation.

These challenges are compounded by the urgent need to decarbonise energy systems to meet climate goals, making innovative solutions critical for success. The PANZ project aims to tackle these barriers head-on by leveraging cutting-edge tools, collaborative frameworks, and new business models to enable and accelerate the energy transition.

The solution

PANZ brings together a consortium of expert partners to develop innovative, scalable, and replicable solutions to decarbonisation challenges. Energy Systems Catapult is playing a leading role by focusing on two demonstrator projects:

1. Rural Heat Pumps Demonstrator. The Catapult is addressing the barriers to heat pump adoption in rural, off-gas communities by:
   • Innovative business models: Designing new delivery mechanisms tailored to rural areas to overcome financial, supply chain, and logistical challenges.
   • Consumer-centric engagement: Conducting consumer research and engagement activities to build trust, enhance understanding, and drive uptake of heat pumps.
   • Framework and blueprint development: Collaborating with partners to create a replicable blueprint for deploying heat pumps in Peterborough, with potential applications in other rural regions across the UK.
   • Stakeholder collaboration: Working with local authorities, community organisations, and industry experts to ensure solutions are feasible, practical, and widely supported.
2. District Energy Network Demonstrator. Energy Systems Catapult is enabling the expansion and commercialisation of district energy networks by:
   • Go-to-market strategies: Developing a comprehensive market entry strategy to promote district heating in residential and commercial sectors.
   • Investment engagement: Engaging with potential investors to address barriers such as risk perceptions, expected returns, and technology unfamiliarity, thereby unlocking funding for large-scale public energy infrastructure.
   • Business case development: Creating a robust business case for future projects that highlights the financial, environmental, and social benefits of district energy systems.
   • Tools and frameworks: Leveraging proven frameworks, tools, and data platforms from previous projects like PIRI (Peterborough Integrated Renewables Infrastructure) to support delivery and expand impact.
   • Collaboration with local authorities: Supporting Peterborough City Council in embedding the solutions into council priorities and decision making processes to ensure alignment with local goals.

Across both demonstrators, the Catapult emphasises innovation, stakeholder collaboration, and real-world application. By combining technical expertise, advanced data science, and user-focused design, the project is ensuring that the solutions developed are not only effective but also adaptable to diverse contexts.

Additional support activities

• Knowledge sharing: the Catapult is actively contributing to the wider dissemination of findings and best practices, ensuring the project’s impact extends beyond Peterborough.
• Consumer research: Using surveys and other data collection methods to target messaging and engagement strategies effectively.
• Risk mitigation: Implementing a proactive approach to managing risks, ensuring the project’s success even in the face of uncertainty.

This multi-faceted approach ensures that the PANZ project not only addresses immediate challenges but also establishes a foundation for long-term, sustainable energy transition across the UK.

Expected impact

• Environmental: Accelerated progress toward Peterborough’s Net Zero goals, providing blueprints for nationwide adoption.
• Economic: Creation of innovative business models to attract investment and reduce operational costs for decarbonisation projects.
• Social: Improved access to low-carbon heating solutions for rural households and increased public trust in sustainable energy systems.

This project’s ambition to lead the energy transition through practical, replicable solutions.