Community Energy: Lothian Heat
Turning waste heat into community energy – Lothian Heat CIC
What if there was a better, fairer, more cost effective way of heating our homes?
Across Scotland, heat is being wasted every single day. From factories and cement works to incinerators and distilleries, industrial processes generate enormous amounts of surplus heat that simply disappears into the air. Meanwhile, one in three Scottish households cannot afford to keep warm. Lothian Heat CIC was founded on a simple but compelling question: what if we could use the heat that is thrown away as a fairer, greener way to heat our homes?
Lothian Heat plans to develop the UK’s largest community heat network – serving 100,000 or more homes powered by local waste heat and renewables. The vision is bold, but it grew from a very familiar starting point: a small group of people who saw a problem in their community and decided to do something about it.
How it started
Like many community-led initiatives, Lothian Heat began with conversation. A shared frustration about fuel poverty in the region, recognition that there had to be a better way, and – crucially – the discovery that there were people nearby with exactly the expertise needed to explore it. Engineers, finance specialists, community energy practitioners and policy professionals all found themselves drawn to the same idea.
The group set up as a Community Interest Company (CIC) – a structure that makes clear from the outset that the organisation exists to benefit the community, rather than private profit. But as with any startup, the early stage was about bootstrapping: building credibility, developing the evidence base, and working towards the next phase of development whilst exploring new sources of funding.
What the evidence showed
Lothian Heat commissioned a feasibility study – produced in partnership with leading Danish heat network consultants Viegand Maagøe – to assess the technical, economic, and social case for a regional heat network. The findings were striking. The study identified over £900 million in savings compared to heat pumps as the alternative, alongside hundreds of local jobs, improved energy security, lower emissions, and a meaningful reduction in fuel poverty.
Critically, the study found that a heat network, actually a series of interconnected networks, would offer the lowest long-term cost for homes, and that the long term costs for households would be lower than installing an air source heat pump. That matters enormously for communities where the barrier to adopting clean heat is often the cost and disruption of the transition itself.
On the ground: Warm Homes East Lammermuir
Alongside the regional ambition, Lothian Heat has been doing practical work at community level. The Warm Homes East Lammermuir project supports households in rural East Lothian, many of them off the mains gas grid and left behind by the energy market, to explore and adopt low-carbon heating and energy efficiency measures. The project works with owner-occupiers, social landlords, private landlords and tenants, offering independent advice, grant and loan guidance, and coordination of feasibility work for shared heat solutions. It is supported by community benefit funding from local wind energy developments – a stellar example of how money generated locally, can be reinvested locally.
The project now has a full-time staff member: a practical sign that the organisation is moving from vision to delivery.
Governance built for trust
One of the most important things Lothian Heat has done is build its governance carefully. The board brings together district energy expertise, community finance, CIC governance experience, and place-based delivery knowledge. An independent Expert Advisory Group provides technical challenge, and a Community and Regional Partners Group will give place-based community organisations structured, formal input – not just consultation. Memorandums of Understanding (MoU’s) with local councils seek to formalise the relationship with local authorities.
This matters because heat networks are complex, capital-intensive infrastructure projects. Communities, councils, and funders all need to be able to trust the organisation leading development. Robust governance is absolutely crucial, as it’s what makes investment possible.
Takeaways
Despite the impressive expertise behind the organisation and the progress made to date – the underlying approach Lothian Heat has taken is entirely transferable. Advice from Lothian Heat is to start with the problem your community is actually experiencing. Look honestly at what local assets and resources exist. Find the people – and there will be people – with relevant expertise who care about the place. Choose a legal structure that reflects your community purpose. Commission or develop the evidence. Build partnerships with local authorities and community organisations before you approach funders. Start asking the questions and having the conversations.
Heat networks in particular are an area where community-led development is increasingly both viable and supported – Scotland’s Heat Networks Act and the requirements placed on councils through Local Heat and Energy Efficiency Strategies (LHEES) create a policy environment that actively needs organisations like Lothian Heat to exist. Add to that there are examples of community-led and owned heat networks across Europe, delivering fairer heat to households. If your area has industrial waste heat, an off-gas-grid community, or a cluster of buildings that could share a heat source, the conditions for a similar initiative may already be in place.Turning waste heat into community energy – Lothian Heat CIC
What if there was a better, fairer, more cost effective way of heating our homes?
Across Scotland, heat is being wasted every single day. From factories and cement works to incinerators and distilleries, industrial processes generate enormous amounts of surplus heat that simply disappears into the air. Meanwhile, one in three Scottish households cannot afford to keep warm. Lothian Heat CIC was founded on a simple but compelling question: what if we could use the heat that is thrown away as a fairer, greener way to heat our homes?
Lothian Heat plans to develop the UK’s largest community heat network – serving 100,000 or more homes powered by local waste heat and renewables. The vision is bold, but it grew from a very familiar starting point: a small group of people who saw a problem in their community and decided to do something about it.
How it started
Like many community-led initiatives, Lothian Heat began with conversation. A shared frustration about fuel poverty in the region, recognition that there had to be a better way, and – crucially – the discovery that there were people nearby with exactly the expertise needed to explore it. Engineers, finance specialists, community energy practitioners and policy professionals all found themselves drawn to the same idea.
The group set up as a Community Interest Company (CIC) – a structure that makes clear from the outset that the organisation exists to benefit the community, rather than private profit. But as with any startup, the early stage was about bootstrapping: building credibility, developing the evidence base, and working towards the next phase of development whilst exploring new sources of funding.
What the evidence showed
Lothian Heat commissioned a feasibility study – produced in partnership with leading Danish heat network consultants Viegand Maagøe – to assess the technical, economic, and social case for a regional heat network. The findings were striking. The study identified over £900 million in savings compared to heat pumps as the alternative, alongside hundreds of local jobs, improved energy security, lower emissions, and a meaningful reduction in fuel poverty.
Critically, the study found that a heat network, actually a series of interconnected networks, would offer the lowest long-term cost for homes, and that the long term costs for households would be lower than installing an air source heat pump. That matters enormously for communities where the barrier to adopting clean heat is often the cost and disruption of the transition itself.
On the ground: Warm Homes East Lammermuir
Alongside the regional ambition, Lothian Heat has been doing practical work at community level. The Warm Homes East Lammermuir project supports households in rural East Lothian, many of them off the mains gas grid and left behind by the energy market, to explore and adopt low-carbon heating and energy efficiency measures. The project works with owner-occupiers, social landlords, private landlords and tenants, offering independent advice, grant and loan guidance, and coordination of feasibility work for shared heat solutions. It is supported by community benefit funding from local wind energy developments – a stellar example of how money generated locally, can be reinvested locally.
The project now has a full-time staff member: a practical sign that the organisation is moving from vision to delivery.
Governance built for trust
One of the most important things Lothian Heat has done is build its governance carefully. The board brings together district energy expertise, community finance, CIC governance experience, and place-based delivery knowledge. An independent Expert Advisory Group provides technical challenge, and a Community and Regional Partners Group will give place-based community organisations structured, formal input – not just consultation. Memorandums of Understanding (MoU’s) with local councils seek to formalise the relationship with local authorities.
This matters because heat networks are complex, capital-intensive infrastructure projects. Communities, councils, and funders all need to be able to trust the organisation leading development. Robust governance is absolutely crucial, as it’s what makes investment possible.
Takeaways
Despite the impressive expertise behind the organisation and the progress made to date – the underlying approach Lothian Heat has taken is entirely transferable. Advice from Lothian Heat is to start with the problem your community is actually experiencing. Look honestly at what local assets and resources exist. Find the people – and there will be people – with relevant expertise who care about the place. Choose a legal structure that reflects your community purpose. Commission or develop the evidence. Build partnerships with local authorities and community organisations before you approach funders. Start asking the questions and having the conversations.
Heat networks in particular are an area where community-led development is increasingly both viable and supported – Scotland’s Heat Networks Act and the requirements placed on councils through Local Heat and Energy Efficiency Strategies (LHEES) create a policy environment that actively needs organisations like Lothian Heat to exist. Add to that there are examples of community-led and owned heat networks across Europe, delivering fairer heat to households. If your area has industrial waste heat, an off-gas-grid community, or a cluster of buildings that could share a heat source, the conditions for a similar initiative may already be in place.