Shetland’s Community Owned Heat Network

Shetland’s Community Owned Heat Network

In the windswept northern isles, the town of Lerwick has quietly achieved what much of Britain still aspires to: a functioning, affordable, low-carbon heat network. Born in 1998 out of necessity and ingenuity, the Shetland Heat Energy and Power (SHEAP) system channels warmth from waste, literally, turning refuse into reliable heat for homes and public buildings. What began as a local response to the absence of mains gas has grown into one of the UK’s longest-running and most resilient district heating networks, a testament to Shetland’s pragmatic blend of self-reliance and community spirit.

Keeping Energy Money Local

SHEAP’s economic impact reaches far beyond its pipes. By capturing value from waste and cutting reliance on imported oil, the network retains an estimated £6.5 million annually within the Shetland economy. Its £24 million in cumulative investment since inception, spanning the Energy Recovery Plant, pipe network, and supporting infrastructure,  has created local jobs, fostered technical expertise, and turned what might have been an environmental burden into a source of community wealth. For residents, district heating offers not only cost stability but also peace of mind: predictable prices, minimal maintenance, and a sense of collective ownership in an uncertain energy market.

A Shared Vision for Britain’s Clean-Heat Future

Perhaps the greatest lesson from Shetland is not technological but cultural. Governed by the Shetland Charitable Trust, SHEAP reinvests profits for public benefit rather than shareholder return, a model that ties social purpose to energy delivery. As the UK wrestles with the challenge of decarbonising heat, Lerwick’s experience offers a quietly radical template: that success depends not merely on engineering, but on trust, long-term finance, and local ownership. In turning waste into warmth and infrastructure into shared wealth, Shetland has illuminated a path for communities across Britain, clean heat, street by street.

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