Funding will come from the public purse and one of the country’s leading net zero infrastructure developers.
Work on the project is set to begin in 2026, and once complete it is hoped the system will cut gas demand in the Midlands city by 7% and air pollution by 86%. This would be equivalent to removing 16,000 cars from local roads annually.
Led by 1Energy, already behind similar schemes in Oxford and Bradford, the new undertaking will cut carbon emissions from connected buildings by 77%. This includes estates owned by the University of Derby, NHS, and Rolls-Royce. SmartParc — a collection of world-class, cutting-edge food production facilities — will also use the network.
Private investment by the developer will amount to £100million, with an additional £23million coming from central government budgets. A further £40million could come from 1Energy to support further growth and expansion of the infrastructure, which uses underground hot water pipes and water source heat pumps to deliver heating.
‘Derby has long led the world in terms of innovation, from water networks to defence. We are delighted to bring long-term investment to the city and build on its rich industrial heritage, enabling leading businesses to play a key role in delivering a new utility model,’ said Andrew Wettern, CEO of 1Energy.
‘Home to world-renowned innovators, Derby is uniquely placed to lead the transition to a more secure energy future,’ he continued. ‘Alongside transforming the city’s energy infrastructure, the Derby Energy Network will give businesses greater choice and long-term price certainty. All while unlocking economic, health and environmental benefits for the city, the region and the country. We are exciting to continue working with Derby’s trailblazers to develop the network.’
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