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Energy and heat

Imagine we could decarbonise our region’s energy system by replacing carbon intensive energy sources with innovative renewable solutions. 

Imagine these products, services and systems all created and operated in the region, resilient to global energy market volatility. Imagine if we shared our ideas, sold our energy products and services globally, generating jobs and investment.  

Imagine no more – this vision is becoming reality.

How are we going to make this happen?

North East Energy Catalyst

We have the unique capability to test new energy innovations in the UK.

The Catalyst unites the region’s energy innovation and demonstration organisations, making it easy for SMEs, investors and government to access them.

Find out more

Heat Networks

A heat network – sometimes called district heating – is a distribution system of insulated pipes that takes heat from a central source and delivers it to a number of domestic or non-domestic buildings.

Find out more

Regional Energy

As a region, we are pioneering low carbon heat technologies including river source heat networks, geothermal heat from mine workings, hydrogen for heat, and heat pumps.  And as the national and international energy agenda focuses on clean growth, there are huge economic, social and environmental opportunities for the North East.

Subsea and Offshore Energy

The North East’s offshore energy and subsea technology cluster is nationally and globally recognised, the region is also known as an international centre for R&D and skills.

What does the evidence tell us?

Our evidence base shows that there has been an 87% increase in renewable electricity generation since 2014 in the North East LEP. Follow the link below to read our full evidence base.

Explore the evidence

Professor Sara Walker gives her view on how the North East can convert its strengths into economic and community benefits for everyone.

Read the think piece

Challenges

  • The historic low price of gas has been a barrier to investment and innovation in alternative heat sources.
  • There remains a need to stabilise volatility in energy prices to encourage investment into alternative technologies.
  • The capacity of the energy grid to respond to rapid electrification, and accommodate demand for transmission and distribution capacity.
  • The high cost of energy derived from transmission and distribution charges compared with other European countries, representing a distinct competitive disadvantage.
  • The lack of clear policy pathways for alternative energy sectors, which would encourage industry investment and innovation into products and services mirroring the strategic approach set out in the offshore wind sector deal. 
  • Significantly raised supply chain costs and capacity derived from the cost pressure caused by economic shocks. This is also exacerbated by the ramping up of national targets for offshore wind and oil and gas development at the same time.
  • The ending of funding mechanisms which have driven delivery of low carbon energy projects including RHI and ERDF, and the lack of clarity about future funding regimes. 
  • The misalignment of the operating geographies for key stakeholders can create collaborative challenges, and requires ongoing co-ordination between LEP’s, local government, business and utility operators.  
  • Short term initiatives, such as Public Sector Decarbonisation programme and the Green Homes Grant Local Authority delivery schemes, which whilst positively intended, can disadvantage stakeholders who cannot respond to funding calls due to resource, capacity and timeframes, and disincentives industry from longer term investment.
  • Lack of community-led energy projects in the North East which are essential in enabling energy projects and will be increasingly so, particularly in rural areas where planning and local consent will be vital.

Opportunities

  • Continuing, and enhanced regional co-ordination of a long-term approach to provide confidence for investors and deliver priorities such as sustained investment in the energy infrastructure; focused support for growth in our key clusters and skills development
  • Delivery of a regional approach to Local Area Energy Planning, where there is already momentum and an exemplar through the Borderlands programme, could prioritise and coordinate cross sector investment and provide a focus for ongoing innovation in the energy system. 
  • Acceleration of our Energy pipeline through the further deployment of project development capacity and associated funding vehicles. 
  • Development of a Community Energy Network, informed by a regional research study setting out structure and mechanisms needed for the successful delivery of community energy projects.  
  • Continuation and enhancement of successful business support schemes such as those led by Local Authorities, delivering energy audits and advice to businesses to aid them in reducing their energy consumption.  £1 million has been committed by the North of Tyne Combined Authority to support business advice in the North of Tyne area.
  • Growth sector activities such as offshore renewables and battery manufacturing represent opportunities to combine decarbonisation and economic outcomes, through strengthening our project pipeline and support cluster development through business support, inward investment and skills interventions 

What we are doing already

Energy is one of our region's distinct areas of opportunity – we lead the way in so many areas that will contribute significantly to our journey towards Net Zero. Check out some examples below and if you are involved in or know of any other exciting projects in this space, we’d love to hear about them, so please get in touch. 

Meet the team

Maria Antoniou

Jessica Cook

Elizabeth Lunn

Leanne Wilson