Heat zones: the future of affordable, secure and sustainable energy?

Cities generate heat almost everywhere you look – from data centres powering your Wi-Fi to fridges in your local supermarket – yet most of it is wasted. In London alone, enough heat is thrown away each year to meet 38% of the city’s heating demand.

Capturing even part of this through heat networks could warm homes, businesses and public buildings without needing to generate as much new energy.

We stand on the verge of the most significant shift in how we heat our homes and workplaces in generations – Heat Zones.

Heat zones replace the current model – where each building has its own heating system – by planning entire districts around shared low‑carbon heat infrastructure: a more efficient, collective approach.

Waste heat from places like data centres, energy from waste, industry, rivers or even the Underground can be captured and shared. Heat pumps and thermal stores can be deployed at scale. And costs that would be prohibitive for one building become far more manageable when spread across thousands.

In other words, heat zones offer one of the clearest, most practical routes to delivering energy that is more affordable, more secure, and more sustainable.

By shifting our heat supply from often fossil fuels (and the price volatility that comes with trading global commodities) towards local, renewable and recovered heat sources, we create an energy system truly rooted in place.

And because these systems are built around local infrastructure and local resources, they are inherently resilient. If one heat source goes offline, others can compensate. Networks can expand and adapt over time. Storage can balance peaks in demand. And cities become far less vulnerable to forces beyond their control.

But this is the point where ambition needs to meet action: a structured, strategic and people‑centred way to redesign heat infrastructure at city scale. If we get it right, we will reshape not just our energy system, but the resilience and competitiveness of our cities for decades to come.

 A proven path to more stable energy bills

Affordability is top of mind for households and businesses across the country. Volatile global gas markets continue to push bills to unpredictable heights. At the same time, the investment needed to decarbonise buildings can feel daunting for property owners and local authorities.

Heat Zones offer a way through this challenge.

We can already see this in action. At Citigen in the City of London we use a mixture of waste heat, heat pumps and thermal storage to provide heating, cooling and electricity to dozens of buildings across the Square Mile. The system cuts emissions by roughly 5,000 tonnes a year while offering a stable, long‑term alternative to traditional heating. It is a glimpse of what can be achieved when districts decarbonise together rather than in isolation.

A long‑term investment in sustainable cities

Energy systems aren’t built for election cycles or short‑term budgets, they are built for generations. If we want to ensure our cities are liveable, competitive and aligned with net zero targets, we need infrastructure that delivers value over the long term and provides wider urban improvements.

Installing a new transmission main, for example, creates opportunities to renew streetscapes, upgrade utilities, improve drainage, expand cycle routes and create greener, cooler neighbourhoods. The public space benefits as much as the energy system.

They also support the workforce of the future. The transition to low‑carbon heat will create tens of thousands of skilled jobs across engineering, operations, maintenance, digitisation and customer engagement. Through apprenticeships, training partnerships and school outreach, we are helping young people see clean heat not just as a technology, but as a career.

Ambition needs to meet action

No single organisation can deliver Heat Zones alone. They demand deep cooperation between energy providers, local authorities, central government, regulators and the communities who ultimately use the infrastructure.

From E.ON’s work in Malmö, Berlin, London and a host of other major cities across Europe, one lesson stands out: cities succeed when heat planning is coordinated, long‑term and grounded in shared purpose.

Clear regulation, predictable revenue frameworks and early engagement with building owners all make a meaningful difference. So does aligning heat infrastructure with other major city projects. And critically, Heat Zones only thrive when people understand the benefits and feel empowered to participate in the transition.

For London, the opportunity is especially significant. The density of buildings, diversity of energy demand and abundance of recoverable heat sources make the City one of the most promising locations in the UK for district‑scale heat. With collaboration across boroughs, utilities and the Greater London Authority, the capital could showcase one of the most advanced clean‑heat systems in the world.

Antony Meanwell is Director of UK Heat Zone Development for E.ON Energy Infrastructure Solutions