Annual Update on the Delivery Plan 2024-29 for Perth and Kinross Local Heat & Energy Efficiency Strategy and Local Area Energy Plan 2024-45
Perth and Kinross Council · 10 November 2025
Back to Climate Change and Sustainability Committee — 10 November 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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PERTH AND KINROSS COUNCIL Our vision is a Perth and Kinross where everyone can live life well, free from poverty and inequality ___________________________________________________________________ Committee or Board: Climate Change & Sustainability Committee Date of Meeting: 10 November 2025 Report Title: Annual update on the delivery plan (2024-2029) for Perth & Kinross Local Heat & Energy Efficiency Strategy and Local Area Energy Plan (2024-2045) Report Number: 25/297 Report Author: Stuart McLaren, Shelley McCann, Divindy Grant Organisational Lead: Serge Merone, Strategic Lead – Economy, Development and Planning ___________________________________________________________________ 1. Purpose 1.1 The purpose of this report is to note progress in implementing the Delivery Plan (2024-2029) for the Local Heat & Energy Efficiency Strategy (LHEES) and Local Area Energy Plan (LAEP) (2024-2045) and to approve priorities for the next 12 months. 1.2 Sections 1. Purpose 2. Recommendations 3. Background/Context 4. 2024/2025 Priorities Summary 5. Annual Progress Update 6. Detailed thematic updates 7. Priorities for the next 12 months 8. Monitoring and Review 9. Conclusion 10. Impact Value Assessment 11. Appendices
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1.3 Abbreviations BAR Building Assessment Reports CATCH Climate Action Through Community Heating DESNZ Department of Energy Security and Net Zero DFES Distribution Future Energy Scenarios DNO Distribution Network Operators EPC Energy Performance Certificate EV Electric Vehicle EVIF Electric Vehicle Infrastructure Fund HEEPS ABS Home Energy Efficiency Programmes Scotland Area Based Scheme HiBs Heat in Buildings Bill HNSU Heat Network Support Unit HNZ Heat Network Zoning KPI Key Performance Indicator LAEP Local Area Energy Plan LDP Local Development Plan LENZA Local Energy Net Zero Accelerator LHEES Local Heat & Energy Efficiency Strategy MPV Multi-Purpose Vehicle NESO National Energy System Operator RAG Red, Amber, Green RESP Regional Energy Strategic Plan SEP Strategic Energy Partnership TCD Tay Cities Deal tRESP Temporary Regional Energy Strategic Plan 2. Recommendations It is recommended that the Committee: 2.1 Notes the progress made during the last year towards the outcomes set out with the Local Heat & Energy Efficiency Strategy (LHEES) and Local Area Energy Plan (LAEP) (2024-2045). 2.2 Approves the LAEP priorities for the next 12 months, listed in Section 7. 3. Background/Context 3.1 In accordance with the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022 and in fulfilment of its statutory obligations, Perth and Kinross Council approved the Local Heat and Energy Efficiency Strategy (LHEES) for the period 2024-2045, along with the corresponding Delivery Plan for 2024-2029, on 27 November 2023 (Report Ref 23/330). 3.2 The LHEES provides a long-term strategic framework aimed at improving the energy efficiency of buildings within the local authority's jurisdiction and reducing greenhouse gas emissions associated with heating these buildings. 3.3 Recognising the importance of a whole energy system approach, a Local Area Energy Plan (LAEP) for 2024-2045 was developed concurrently, with the LHEES at its core. The LAEP offers insights into the scope, scale, pace, and timing of the changes necessary for transitioning to a net-zero energy system.
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It adopts a whole energy systems approach, addressing the complex interdependencies among various energy vectors from generation to consumption. 3.4 The following figure illustrates the components of both the LHEES and the LAEP, as well as their interactions: 3.5 Both the LHEES and LAEP are firmly aligned to the priorities and vision of the Corporate Plan 2022/23 – 2027/28 (approved by Council in December 2022) for a Perth and Kinross where everyone can live life well, free from poverty and inequality. The priorities and outcomes reflect what our communities, elected members, stakeholders, and partner organisations believe are the most important for Perth and Kinross. They are also fully aligned with local strategies, policies and plans including the: • Perth and Kinross Climate Change Strategy and Action Plan • Perth and Kinross Local Outcomes Improvement Plan 2022-2032 • Perth and Kinross Local Development Plan 2019 • Perth and Kinross Local Housing Strategy 2022-2027 • Perth and Kinross Child Poverty Delivery Plan 2022-2026 • Perth and Kinross Mobility Strategy and Action Plan • Tay Cities Regional Economic Strategy and Perth and Kinross Economic Action Plan 4. 2024/2025 Priorities Summary 4.1 In Report No. 24/286 (LHEES annual report 2024/25), Members approved the following delivery priorities for the year November 2024 – October 2025 and progress updates are provided below.
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4.2 Improving buildings’ energy efficiency aiming for affordable warmth and regulatory compliance 2024/25 priority RAG status Comments Develop One Stop Shop for Home Energy Retrofit Innovate UK funded project completed in July 2024, next phase in planning Utilise HEEPS ABS funding to deliver energy efficiency measures £503,524.11 worth of improvement works was carried out in 24/25, with 86 properties getting insulation measures and 9 solar panel systems. Campaign developed with Home Energy Scotland and energy savings trust Heat pump comms campaign developed, launched October 2025. Estate decarbonisation - Explore how the approach of categorising buildings by types for building decarbonisation can be rolled out across the rest of the non-domestic and domestic stock to prioritise retrofit and clean heating system transition. Utilising council data and categorising the buildings allows the transition to be more efficient and more focused. Building categorisation has shown that there is not one solution to fit throughout the PKC estate. Every building needs to be treated separately in relation to decarbonisation to make sure that it can be as efficient as possible. Engage with Scottish Enterprise to stimulate supply chain Through energy efficiency and retrofit & skills and supply chain delivery groups 4.3 Decarbonising heat within a transitioning energy system focusing on heat networks and heat pumps 2024/25 priority RAG status Comments Undertake Perth City heat network feasibility study (Heat Network Support Unit (HNSU) funded) Technical and Commercial feasibility complete, next phase of heat network design and delivery to be investigated. Further HNSU funding being explored. Work to ensure the approach developed through this work can be replicated in other potential heat network zones in rural areas. Feasibility studies for small scale rural heat networks looking at hard to decarbonise Council sites where we have non-domestic properties in close proximity to social housing Decision taken with Development Plans team to adopt a phased approach to Heat Network Zoning,
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signposted in LDP3 local planning policy to a live web resource to enable reactive approach to emerging national policy. Complete Building Assessment Reports (BAR) for Council owned buildings Returns received from several stakeholders. Further action is awaiting decision from the Scottish Government regarding funding for national approach to data collection and publishing via the Scottish Government, Improvement Services and Spatial Hub. Engage with SSEN to explore impact of low carbon heating solutions on grid capacity through Local Energy Net Zero Accelerator (LENZA) Perth and Kinross to pilot process to utilise SSEN's LENZA to plan decarbonisation pathways, which in turn drive SSEN Distribution’s longer- term strategic network planning that will power local net zero ambition 4.4 Reduce transport 2024/25 priority RAG status Comments Align PKC’s Mobility Strategy with LHEES and LAEP Ongoing with new lead mobility officer in post from June 2025 Innovate UK project on connecting regional travel - Aberfeldy Project completed in July 2025 4.5 Decarbonise transport 2024/25 priority RAG status Comments Align Mobility Strategy with LHEES and LAEP Ongoing with new lead mobility officer in post from June 2025 Finalise and deliver the public charging EV infrastructure strategy EVIF project ongoing with Angus Council as a partner. Procurement for private partner ongoing and expected to be completed by Spring 2026. Expansion of recharging network throughout Perth and Kinross Continued growth of public charging EV infrastructure Continually assess air quality across Perth and Kinross to assess any necessary mitigation measures The Perth Air Quality Action Plan has been created and has been approved by the Climate Change and Sustainability Committee in August 2025.
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4.6 Deploy local renewable energy generation 2024/25 priority RAG status Comments Support community energy ideas through Scalable Cities project Scalable Cities project complete and was launched at PKC’s Big Energy Event on 20 September 2025. Develop a replicable approach for how investment from the public and private sectors in smart local energy systems can generate wealth for local communities and help meet net zero target. Through Scalable Cities community investment framework, commercial feasibility completed to identify delivery models, capable of leveraging substantial private investment, for the development and delivery of heat networks and pipeline low carbon Strategic Energy Partnership procurement and contract strategy being progressed Reassess suitability for renewable energy sites and opportunities aligned to the Local Development Plan 3 Renewable and Low Carbon Energy Planning Guidance is currently out for consultation. 4.7 Enabling actions 4.7.1 Developing green skills and the capacity of the supply chain 2024/25 priority RAG status Comments Tay Cities Region Deal and Clean Growth Platform to identify existing skills and partnerships Through energy efficiency and retrofit & skills and supply chain delivery groups linking with the TCD Skills Programme, Skills Board and Skills Pathways project. Engage with Scottish Enterprise to use the LHEES and LAEP to stimulate supply chain development Through energy efficiency and retrofit & skills and supply chain delivery groups Through the Innovate UK funded Revitalising Homes project, quantify the market opportunities and risks for local suppliers Work completed and report published
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4.7.2 Working in partnership with communities to build community wealth and wellbeing 2024/25 priority RAG status Comments Collaborate with Community Energy Scotland and partners SSEN, Bable and CATCH through the Scalable Cities project to identify and set up the pathway for the development of community energy schemes Completed through the scalable cities project. Further engagement and collaboration with CATCH through the Danish Board of District Heating mentoring scheme. 4.7.3 Mobilising partners and public and private investments for projects 2024/25 priority RAG status Comments Through HNSU funding work with a legal advisor to produce a Delivery Options Appraisal and progress towards a Strategic Outline Case for delivery of the Perth city-wide heat network as a key anchor project for a wider energy projects investment programme. Commercial feasibility work completed by legal advisors to assess delivery model options and progress Strategic Energy Partnership procurement. Strategic Energy Partnership Board formed. Establish the Strategic Energy Partnership (SEP) and develop a five-year investment programme. SEP Board now formed and meeting to progress procurement, but longer timescales to fit Competitive Dialogue procurement process.
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4.7.4 Data and scenarios building tools and platform 2024/25 priority RAG status Comments Continue to work to evolve the LHEES/LAEP evidence base and tools to support whole systems energy planning with delivery partners and data providers. Work with SSEN to pilot development to support alignment with grid investment planning (e.g. Distribution Future Energy Scenarios (DFES) and pathways for the Regional Energy Strategic Plan (RESP). Potential Heat Network zones updated. Work with SSEN, Ordnance Survey, Energy Savings Trust and additional delivery partners to map user access journeys to digital evidence underlying LHEES/LAEP including data sharing and licensing arrangements. We continue to work with our delivery partners as part of the LHEES/LAEP delivery groups. User access groups for stakeholders including community groups, commercial and contracted consultants, LAEP partners. Open data access supported. Onboarding of staff to facilitate continued use and update of data. CATCH onboarded. Prioritise and publish LHEES/LAEP and related energy projects data on corporate systems and develop a process for update and improvement with support from the Corporate Data Team. Corporate Data and Analytics Work Programme dedicated onboarding resource established to ensure LHEES and LAEP related data products are available to stakeholders using ArcGIS and establishing data management plans. Potential Heat Networks zones published corporately, and improved renewables pipeline data process established.
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4.7.5 Governance 2024/25 priority RAG status Comments Develop a monitoring and evaluation plan (MEP) building on and aligning with supporting strategies such as the Local Housing Strategy, Mobility Strategy and Action Plan and Climate Action Plan KPI framework developed Continually monitored and updated during coordination team meetings with associated KPIs. Develop a Communication and Engagement Plan through the delivery group setting out that the Council and Steering Group will conduct regular consultation and engagement with stakeholders Communication and engagement through delivery groups quarterly and events such as the energy event in September 2025. Communication and engagement plan for heat pumps and solar PV for owner occupied and landlords. 5. Annual progress update Overall Performance against LAEP Action Plan 5.1 Out of the 35 actions in the LHEES action plan, across seven themes, 22 of the actions are either complete, ongoing or moving into the next phase of the project that requires additional funding. The other actions are in progress but delayed due to lack of funding, lack of resources or require further policy updates from the Scottish Government to move forward. The graphic below shows the split of the actions in relation to RAG status. 0 1 2 3 4 5 6 7 8 Energy Efficiency Heat Decarbonisation - Heat Network Heat Decarbonisation - Heat Pumps Reduce Transport Demand Decarbonise Transport Local Renewable Generation Enabling Actions RAG status of actions Green Amber
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5.2 The performance of the actions and associated plan are monitored through the LHEES/LAEP Coordination group that meet every 2 months to discuss any actions that need progressed. The group consists of lead officers from all LHEES/LAEP themes so actions can be discussed and progressed if necessary. 5.3 Some of the challenges associated with delivering the action plan include: • Supply Chain, Skills and Staff Shortages: A lack of specific skilled workers and retrofit supply chain capacity slows down implementation, especially in rural or remote areas. This has been highlighted as a major issue in the roll-out of cleaner technology including heat pumps and solar PV. Working alongside agencies such as Perth UHI, Scottish Enterprise and Energy Skills Partnership we hope to identify the key areas where investment is required to develop or transition of existing trades into greener skills. • Grid Infrastructure Limitations: Many areas face grid capacity issues which means engaging with Distribution Network Operators (DNO) like SSEN is vital in planning the roll- out of solutions such as heat pumps. We are working alongside SSEN to identify areas that require development and investment through Distribution Future Energy Scenarios (DFES) and the Regional Energy Strategic Plan (RESP). These projects will allow DNOs to see where energy users are looking to expand into and look at grid expansion and upgrades. Additionally, we continue to utilise and codevelop the SSEN LENZA tool which shows live grid capacity on the network and predicted constraints, enabling better decisions on the siting of new energy assets and roll out low-carbon programmes. It uses a traffic light system to show whether a new energy asset could be accommodated on the existing network or where further development is required. • Stakeholder Engagement: Efficient delivery requires collaboration across local authorities, communities, private sector, and national government. This can be challenging due to differing priorities and resources. Engagement is vital to deliver the LHEES/LAEP actions. PKC is engaging through delivery groups, steering group and focused events like the energy event that was held on 20 September 2025. In addition, PKC is part of groups that contain officers from a range of local authorities to collaborate and share ideas on the delivery of the LHEES and LAEP. • Financial and funding Constraints: There are funding limitations and there can be uncertainty around long-term investment which can delay key projects. PKC continue to seek and utilise funding opportunities to help push forward the actions outlined in the LHEES and LAEP. Challenges exist for the Council to provide the investment required to decarbonise at scale. We are progressing with a procurement to create a Strategic Energy Partnership with a private sector partner to bring needed capital investment into this area. Expected to be in place September 2026.
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The Council has recently agreed to sign the UK City Net Zero Declaration and network and use this platform to attract business and project investments at national and international levels. • Policy delays and uncertainty: Delays in policy reform from Scottish Government and uncertainty are impacting the delivery of certain actions. Lack of clarity on the timelines for the publishing of the Heat in Buildings Bill (HiBs) have led to delays in Heat Network Zoning designation and completion of supporting Building Assessment Reports (BARS). HiBs will include provisions to boost heat network development by developing requirements for large, non-domestic premises, including powers to require public sector buildings to connect to district heating when available and therefore, is considered a key policy mechanism for delivery of HNZs. The Council will adopt a phased approach to Heat Network Zoning as a way forward to ensure current work funded through the HNSU for Perth is considered in designation and where zones have been formally assessed to ensure a high-level financial viability has been established. 5.4 In addition, the delay to EPC reform from 2025 to 2026 is impacting the delivery of many of the housing actions relating to energy efficiency. This delay may impact local authorities in the delivery of net zero ambitions in relation to building energy efficiency and emissions. 5.5 Some of the opportunities for LHEES/LAEP delivery include: • Community Wealth Building: Energy efficiency and heat decarbonisation projects can stimulate local economies, create jobs, and build resilience. The creation of the Strategic Energy Partnership will allow PKC to work alongside a private partner that values community wealth and will help enhance the areas in which they invest and develop. The procurement process will be an opportunity to highlight that PKC want a partner to invest in local areas, including job creation and supporting local businesses. • More locally led planning: The LHEES and LAEP allows PKC to tailor projects and strategies to support local needs, enabling more relevant and impactful interventions such as supporting community energy projects through the scalable cities project. Updating of the renewable policy in line with the LDP 3 and prioritising local initiatives allows PKC to focus in areas that help the communities within Perth and Kinross. The procurement of a Strategic Energy Partner will allow us to collaborate with the private sector to decarbonise our energy usage for the benefit of communities, the environment and the wider economy. Helping residents and communities that are in fuel poverty is also a high priority as part of the LHEES. This can be focused on as part of a more local approach when planning projects and engaging with partners.
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Key Performance Indicators (KPIs) 5.6 The LHEES/LAEP action plan has been developed to assign certain actions to designated teams and team leads so there is accountability to deliver. This year a KPI framework has been developed that is presented in Appendix II, with relevant KPIs selected for each of the priority themes. Where possible, the KPIs have been designed to align with those of the Council’s Climate Change Action Plan, Mobility Strategy and Local Housing Strategy. The associated KPIs will be monitored by the LHEES/LAEP coordination group and annually reviewed using a variety of PKC owned and other data sets. 5.7 Of the 23 KPIs, we currently have data for 16. Of the KPIs we have data for, 10 showed improvement. For some KPIs we have 24/25 data, while other datasets are published with a 1–2-year data lag, so data from 2023 is the latest data set available. 5.8 The KPIs across the LHEES/LAEP themes show that they are improving year on year, especially with regards to energy efficiency with CO2 emissions and energy consumption reductions and increases in the energy efficiency EPC levels of social housing within Perth and Kinross. 5.9 There is a decrease in overall consumption of heating oil throughout the non- domestic estate. Hopefully this will increase further with increased communication and engagement on alternative solutions e.g. heat pumps. 5.10 There has been a slight increase in percentage of households in fuel poverty. This has been impacted by global energy price rises and subsequent cost of living crisis, bringing more people into fuel poverty. Much of this is beyond PKC control but demonstrates the importance of all energy efficiency measures the Council is taking or promoting. 5.11 The Heat Networks Planning Database (HNPD) published by the Department of Energy Security and Net Zero (DESNZ) tracks the progress of both communal and district heat networks from inception, through planning, construction, operation and decommissioning. 5.12 The majority of the transport KPIs are heading in the right direction with an increase in the provision of electric vehicle charge points and a steady increase in the transition of fleet vehicles to electric and alternative fuel sources. There has been an overall reduction in emission caused by transport but a slight increase in total car miles. This increase could be caused by more workers having to travel into the workplace as work from home policies have changed. 5.13 There has been a slight reduction in renewable energy generated across the PKC estate. This decrease has been impacted as biomass boilers are out of commission, causing the reduction in energy produced. Significant investment is required to bring the boilers back into use, alternative solutions are being reviewed to help reach the Council’s net zero targets, with reduced risk.
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5.14 The Renewable Energy Planning Database (REPD) published by DESNZ tracks the progress of renewable projects, and electricity storage projects from inception, through planning, construction, operation and decommissioning. Perth and Kinross ranks tenth in Scotland for installed renewable energy generation capacity and eleventh in terms of the future the project pipeline. We are one of the lead authorities, fourth in Scotland, in terms of installed operational discharge capacity, and rank fifth nationally for the future project pipeline, largely due to a growth in battery storage. Risk register 5.15 The risk register is an evolving document and is continuously monitored to make sure that it is up to date as possible. Additional risks and mitigation measures are inserted to make sure it is a live document. 5.16 One of the major risks of delivery is the lack of internal capacity and resource within PKC. The Council does not have the technical skills or resources to develop and implement complex energy plans, leading to a reliance on external consultants. 5.17 Another major risk is the short-term nature of funding. We require sustained investment to support infrastructure upgrades, community engagement, and delivery mechanisms, but current funding models are often competitive and time-limited. This creates disparities between well-resourced and under- resourced Councils, potentially exacerbating regional inequalities. 5.18 The success of LHEES/LAEP delivery depends heavily on access to high- quality data and coordination with stakeholders such as Distribution Network Operators (DNOs), energy providers, and communities. Without clear governance structures and long-term policy support, PKC will struggle to attract private investment and deliver the systemic change needed to meet our net zero targets. 6. Detailed thematic updates 6.1 Please note that many actions across all LAEP themes will be reported on in more detail within other committee report updates, such as the Mobility Strategy. Theme 1: Improving buildings’ energy efficiency aiming for affordable warmth and regulatory compliance 6.2 HEEPS ABS: £503,524.11 of improvement works was carried out in 24/25, with 86 properties getting insulation measures and 9 solar panel systems. • External Wall Insulation: In the Hillyland area of Perth, a total of 23 private owner properties and 60 PKC properties had external wall installation installed. • Cavity Wall Insulation: A total of 3 installations were completed, all at privately owned properties.
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• Solar PV and Battery Storage: A total of 9 installations were completed, all at privately owned properties. SCARF energy advice contract 6.3 Over the 2024/25 financial year 1,788 residents received guidance over a wide range of topics, resulting in 108 participants being referred to trusted contractors for installation of energy efficiency measures. 6.4 In the 2024-25 financial period SCARF eradicated £3,360 in fuel debt for residents. As a result of the energy advice provided to residents, it is estimated that £51,660 was saved throughout the year. Innovate UK One Stop Shop Retrofit - Revitalising Homes 6.5 Revitalising Homes looked at a whole systems approach to retrofit through engagement with householders, local suppliers and installers, identifying green skills gaps, exploring and modifying a customer re-claim model for funding and creating a viable business model for a sustainable retrofit project. 6.6 The Council is currently working with project partners to develop this idea further, with the next steps being: 1) Create a Knowledge Hub as a central source of trusted information on the retrofit process and home improvement measures. 2) Implement a viable business model for a one-stop-shop for retrofit advice and support. Non-domestic improvements 6.7 Over the last year the PKC non-domestic stock has seen an overall 5% decrease in energy consumption, even though there was an increase in Gross Internal Floor Area (GIFA). There has also been a reduction in carbon emissions, making it the lowest value since records began within PKC. Theme 2: Decarbonising heat within a transitioning energy system focusing on heat networks and heat pumps Perth City centre heat network report and commercial modelling 6.8 Funding from the Scottish Government’s Strategic Heat Network Support Unit (HNSU) was utilised to procure a consultant to assess the technical and commercial viability of the Perth City Heat Network and build a programme for procuring a partner to deliver heat networks within a wider energy system. The project focussed on identification of the build-out from the initial Perth City Centre network to the surrounding area to achieve a city-wide, large-scale, heat network. This will be a key anchor project in the wider pipeline of energy projects and be used in the procurement to establish a Strategic Energy Partnership (SEP).
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6.9 Work comprised of two separate work packages: 1. Technical Heat Network Design and Delivery supported by our technical partner (£100k – HNSU funded) 2. Commercial Delivery Models and Procurement supported by our commercial advisors (£35k – Council funded). 6.10 The technical report outlines a preferred option for the Perth City Heat Network which uses a combination of air source heat pumps (ASHPs) and sewer source heat pumps (SSHPs) to supply heat to the network. The first phase is located in Perth City Centre, extending from the west bank of the River Tay to the railway line west of the city, and from South Inch in the south to Balhousie North Inch care home in the north. It will serve 13 key Council- owned buildings such as Pullar House and Perth Playhouse (Cinema), with a southern extension to supply HM Prison Perth. Commercial Delivery Models and Procurement – Strategic Energy Partnership (SEP) 6.11 The Council is committed to delivering net zero targets and to changing the energy system so that we can transition away from fossil fuels and deliver a resilient and clean local energy system supporting economic growth and tackling inequalities in the energy transition. To support these ambitions, PKC is establishing a Strategic Energy Partnership (SEP) with a private sector partner. This work builds upon the Prior Information Notice for the SEP sent out in summer 2024. Work funded by the Council and supported by the HNSU involved legal advisors reviewing delivery models for heat networks and other energy projects. This resulted in a number of outputs including a Delivery Model Options Assessment and Preferred Option Delivery Model Report, an advice note on the procurement and contracting strategy, a procurement timetable and ‘route map’ for SEP highlighting options for moving forward and an indicative timetable for the procurement process. 6.12 A SEP Board has been established and has met monthly to continue to progress this work and a Procurement Strategy is being progressed. Additionally, the Council has agreed to join a network of UK local authorities that will share experience of developing SEPs. 6.13 The Council is currently seeking a continuation of funding through HNSU to further progress this work towards an Outline Business Case (OBC). Recommended next steps include additional technical feasibility work alongside financial modelling to support the economic and financial case for the Perth HN opportunity and Procurement and Contract Strategy support including the development of a Strategic Partnering Agreement (SPA) and assistance with financial bundling of additional pipeline energy projects including (renewable energy development and battery storage, private wire, hydrogen refuelling, and estate decarbonisation).
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Housing heat pump installs 2024-25 6.14 In the period of April 24- March 25, 58 heat pumps have been installed throughout the Council owned stock. From April 25 to date a further 29 heat pumps have been installed. As part of the planned installation programme up to March 2026, 35 additional heat pumps will be installed as part of a pilot project. Theme 3: Reduce transport Investigate the use of multi-modal transport hubs and of inner-city car parking to increase public transport usage 6.15 An options appraisal has been completed for the redevelopment of Perth’s Bus and Railway Station and improving connectivity with the city centre. It sets out preferred options for delivery including: • a redeveloped new bus station • a new public space in the existing railway station car park • an enhanced the pedestrian connection between the station and the city centre • An active travel hub The outline business case will be complete by spring 2026, with the full business case complete in the summer. The allocated funding must be spent by March 2030. Deliver behaviour change initiatives to encourage active travel and public transport use 6.16 In 2024/25, Tactran allocated behaviour change funding to projects in Perth to encourage active travel in places where traffic-free active travel infrastructure has already been built or will be soon. Interventions included active travel promotion in schools and engagement in workplaces. Theme 4: Decarbonise Transport Decarbonising Bus Services 6.17 Further electric buses have been added to bus operator fleets in 24/25 and new electric bus services continue to be introduced. 6.18 Glenfarg Community Transport has purchased an electric minibus to pilot a demand responsive transport service in the Kinross-shire area and Ember are continuing to expand electric coach services. Ember have introduced their first electric service through Blairgowrie linking Dundee and Aberdeen daily in each direction.
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Electric Vehicle Infrastructure Fund (EVIF) 6.19 In March/April 2025 in various locations across the Council area, 5 x 50kW Rapid chargers were replaced as they were not contactless payment compliant. 6.20 The Electric Vehicle Infrastructure Fund (EVIF) project funded by Transport Scotland is progressing well. A Prior Information Notice (PIN) has been uploaded to Public Contracts Scotland (PCS), and we have received around 14 submissions so far. 6.21 A project board has now been created with representatives from PKC and Angus Council. It is proposed that a contract will be awarded around April 2026 with migration of all chargers from the CPS back office to the new back office by August 2026. Hydrogen 6.22 A related Tay Cities Deal project (TCD008c – Perth Hydrogen Refuelling Station) is proposing a change request to TCD to change hydrogen proposal from a public access hydrogen station to an internal hydrogen refuelling station likely to be at Friarton Depot. Fleet transition 6.23 Over the last 12 months the fleet team has incorporated 17 Refuse Collection Vehicles (RCVs) that are powered by Hydrotreated Vegetable Oil (HVO) instead of diesel. 6.24 Three Electric Van Derived MPVs have also been added to the fleet through the year. The composition of the Council fleet also changed from diesel to more petrol and electric cars for its pool vehicle fleet. This has resulted to significantly less (98%) usage for all small, medium and large diesel cars. The Council has also purchased more battery electric vehicles, noting a 34% mileage increase for this reporting year. Theme 5: Deploy local renewable generation Scalable Cities project 6.25 This EU funded project explored how to involve communities in local energy generation and heat decarbonisation as part of a strategic approach to building a local and decentralised energy system in Perth & Kinross. The project focused on how local renewable energy projects could be funded through a Community Energy Investment Framework bring public, private and community finances together.
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6.26 Outputs include: • A template where local community groups can be engaged in the development of a smart local energy system supported by local and national governments and the private sector – Community investment framework. • Expands upon the LHEES/LAEP and climate change action plan on developing local energy projects such as district heating systems and renewable energy projects from Community Energy Scotland. • The report demonstrates how investment from the public, private and community sectors in smart local energy systems can generate wealth for local communities and help meet overall net zero targets. • During the project we have been engaging and working with all local stakeholders across the energy system to bring support and action. A stakeholder engagement event was held during the project where ideas on community energy projects were shared and the support from PKC and Community Energy Scotland was outlined to those community groups in attendance. 6.27 The overall impact of this project is to allow better collaboration and communication with communities in delivering the LHEES/LAEP actions across Perth and Kinross. SSEN LENZA 6.28 The Council has worked alongside SSEN and other partners to build evidence in the Local Energy Net Zero Accelerator (LENZA) platform which will utilise the outputs of our LHEES, LAEP and our live Delivery Plans to plan decarbonisation pathways by enabling low carbon technologies (LCTs) such as heat pumps to be sited in cost-effective locations whilst providing early warning to SSEN of additional demand on the network. 6.29 This will help us to ensure alignment with grid investment planning in the near to medium term, while helping to improve and shape longer term roll out and investment required up to 2045. Alignment of our investment planning with SSEN and other key delivery partners will support the development and triaging of a pipeline of low carbon projects through to delivery avoiding risks and barriers posed by grid capacity. Regional Energy Strategic Plans (RESP) 6.30 Ofgem awarded National Energy System Operator (NESO) the RESP role in November 2023. Following their public consultation in July 2024, Ofgem published its final decision on the details of the RESP role on 2 April 2025. The RESP framework policy sets out the scope of the role and what NESO and its stakeholders will be doing to enable the development of RESPs across Great Britain.
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6.31 The RESP role has been set up to develop regional plans that span across all energy vectors – electricity, gas, and hydrogen networks – as part of one integrated energy system. The RESP for Scotland will be produced in full by the end of 2027 once it has been approved by Ofgem. 6.32 PKC has been selected as the pilot to test the process of how data streams from LHEES/LAEP and additional data within LENZA can be used to inform the SSEN Distribution Future Energy Scenarios (DFES) and pathways for the Regional Energy Strategic Plan (RESP) going forward. Engagement has taken place both internally and externally with large energy users within Perth and Kinross to try and help inform the temporary regional energy strategic plan (tRESP). The tRESP is to consist of more granular level data and is due for completion in January 2026. More information on the RESP and tRESP can be found here. Enabling Actions 6.33 The delivery of the LHEES/LAEP priorities are supported by the following mechanisms: 6.34 Delivery groups Established the Council’s LHEES/LAEP delivery groups focussing on different themes including: • Energy efficiency and retrofit • Industrial and commercial (including heat networks) • Renewable energy generation • Skills and supply chain These groups focus on the specific theme and consist of internal and external stakeholders helping to drive and deliver the actions identified in the LHEES/LAEP. 6.35 Stimulate supply chain and skills – work with key partners including Perth UHI and Energy Skills Partnership (ESP) to assess priority green skills. The business case for the Sustainable Construction Skills Project funded under the Tay City Region Deal (TCRD) Skills Programme has had Tay Cities Joint Committee approval in June but is still being reviewed by the Scottish Government. Activities over the next 12 months will be focussed on further curriculum development and career pathways. 6.36 Engaged with Scottish Enterprise to use the LHEES and LAEP to stimulate supply chain development and explore how they can shape planning of upcoming events to articulate opportunities and raise awareness of potential solutions and innovation across the industry.
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Working in partnership with communities to build community wealth and wellbeing: Over the past year, we have: 6.37 Engaged with Kinross CATCH project providing access to LHEES and LAEP evidence via SSEN LENZA platform and tools to support Community Energy Potential Mapping. In addition, CATCH was given access to the Danish Board of District Heating mentorship through PKC, a forum to understand how to incorporate lessons from Danish district heating into Perth & Kinross. 6.38 Worked with SCARF to identify and target homes in Perth & Kinross that are eligible for ECO 4/ECO 4 FLEX funding for energy efficiency improvements. SCARF have sent letters to homes identified as EPC Bands E-G that require fabric first energy efficiency solutions. SCARF also offer funding to help eradicate fuel debt for households that have not been able to pay energy bills. 6.39 We held an energy event on 20 September 2025 in the Civic Hall to gain exposure to a wide audience, including potential customers and partners. The overall aims of the market were to educate the community, promote sustainable practices and hopefully show how the public could save money on energy bills. There were stalls, speakers, and energy themed workshops running throughout the day all covering different aspects of the energy market. Mobilising partners and public and private investments for projects: 6.40 Over the past year, we have consulted with the market and stakeholders through a series of workshops to evaluate a possible Strategic Energy Partnership to unlock delivery of, though potentially not limited to, heat networks and to improve delivery capability into large and complex energy projects. Data and scenarios building tools and platform: Over the past year, we have: 6.41 Continued to work to evolve the LHEES/LAEP evidence base and tools to support whole systems energy planning with delivery partners and data providers. Data sets have been uploaded onto the SSEN LENZA platform to better understand the connection requirements to help decarbonise all assets throughout Perth and Kinross. 6.42 Started a Corporate Data Team (CDT) supported data and analytics work programme targeted at identifying, prioritising and publishing LHEES and LAEP related datasets corporately, in ArcGIS and ensuring improved data processes, management and sharing plans are in place.
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7. Priorities for the next 12 months for LHEES and LEAP 7.1 Improving buildings’ energy efficiency aiming for affordable warmth and regulatory compliance by: Priority Actions Comment Deliver the HEEPS ABS programme for 2025/26 Grant funding has been awarded of £1,942,800. This will target support for areas of private homeownership where EPC Bands are low and will also align to assist and support our multi-storeys strategy. Continue with “quick win” projects for non-domestic properties aligning with LHEES. Target off gas grid and inefficient electric heat sources. Projects at Arngask and Glendelvine Primary schools to be progressed and continue to liaise with SSEN regarding potential network upgrades for other areas. Develop decarbonisation pathway for all PKC non-domestic properties aligning with the Scottish Government’s updated Heat in Buildings bill. Develop decarbonisation pathway for all PKC non-domestic properties aligning with the Scottish Government’s updated Heat in Buildings bill. Develop One Stop Shop Home Retrofit Advice service for Perth and Kinross together with the HEAT Project. 7.2 Decarbonising heat within a transitioning energy system focusing on heat networks and heat pumps by: Priority Actions Comment PKC has agreed an approach of phased heat network zoning (HNZ) and link to a live web resource to include a web map and completed HNZ proforma for zones as they are designated. There is an opportunity for knowledge sharing in HNZ LDP local policy development potentially with advice from Scottish Government. PKC’s LDP 3 will have a heat network policy which will signpost to a separate designated heat network zones document/web map (this will allow us to update heat network zones as required). Seek and utilise continued further funding from the Strategic Heat Network Unit of the Scottish Government to build a programme for procuring a partner to deliver heat networks within a wider energy system. Consideration and alignment of phased large scale heat network delivery with the wider strategic energy programme will be a key aspect of this work. Recommendations for next steps and funding include development of a Strategic Outline Case (SOC), review of the techno- economic/financial modelling and development of a Strategic Partnering Agreement (SPA).
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The development of a Strategic Energy Partnership will provide an opportunity to inform how heat networks, and other low carbon opportunities identified in the wider LHEES/LAEP, could be delivered. The establishment of an energy partnership may help to unlock heat network development in those areas of Perth and Kinross that are less commercially attractive but could benefit the most from what district heating can offer. Look to complete the Building Assessment Reports (BARs) for required Council owned buildings. The project had been paused until further action and funding from the Scottish Government. Continue to engage with Scottish and Southern Electricity Networks (SSEN) to explore the impact of low carbon heating solutions such as heat pumps and heat networks on grid capacity. We plan to do this through the Local Energy Net Zero Accelerator (LENZA) platform and through the emerging temporary Regional Energy Strategic Plans (tRESP) and overall Regional Energy Strategic Plan. 7.3 Reduce transport Priority Actions Comment Investigate the use of multi-modal hubs and of city centre parking to improve public transport usage The Council has appointed a consultant to assist in developing an Outline Business Case and Full Business Case for the Perth Bus and Railway Station Project supported by £15m from the Tay Cities Deal. Deliver behaviour change initiatives to encourage active travel and public transport use. The Council will promote specific local bus services, community transport initiatives and continue to promote free bus travel offers. Also, in partnership with Stagecoach, PKC staff and elected members can access the recently introduced discounted bus travel scheme. The Council is currently reviewing potential projects to be delivered using Local Authority Direct Award funding from Transport Scotland Potential projects include support for a bike share scheme, development of active travel maps, reviewing active travel signage and supporting education programmes. A Mobility Working Group will be established with an early action to review the Mobility Strategy monitoring and evaluation framework and identify transport data gaps. This will allow PKC to effectively monitor active travel and private car use against set targets within the region.
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7.4 Decarbonise Transport Priority Actions Comment Finalise and deliver an EV Infrastructure Strategy. Through the EVIF we will support the decarbonisation of Perth and Kinross' transport network by ensuring there are new recharging networks as well as investment in new technology. The Council will be applying for funding to install additional PKC chargers (for fleet vehicles) at more public locations. The use of hydrogen in HGVs is currently being reviewed but this is not likely to be implemented in the next 12 months. 7.5 Deploy local renewable generation Priority Actions Comment Through the Scalable cities project, support community energy schemes. Help Identify and develop local community energy projects supported by local and national governments and the private sector expanding on opportunities identified in the LHEES/LAEP and the Climate Action Plan. Develop a replicable approach for how investment from the public and private sectors in smart local energy systems can generate wealth for local communities and help meet net-zero target. Assess the suitability for renewable energy sites and opportunities aligned to the Local Development Plan. Renewable energy site suitability to be aligned with LDP 3 renewables local policy development, which is currently out for consultation. Continue to collaborate with Community Energy Scotland, SSEN and CATCH after the Scalable Cities project Help develop a clear pathway for the development of community energy schemes through the community investment framework from the project. Use the experience from the scalable cities engagement to help stimulate community ideas for renewable energy generation. Record and give advice to communities on funding opportunities and feasibility studies to advance the community project. Coordination of local energy system inputs to the transitioning national energy system planning to support delivery of 8GW commitment to local and community energy projects through the Local Power Plan and GB Energy.
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Support and raise awareness re Council readiness to adapt to significant changes in local government powers, including funding and delivery of net zero and by evolving approaches to local net zero planning and role of net zero plans in the wider context of the energy system. 7.6 Data and scenarios building tools and platform: The priorities for the next 12 months will be to Priority Actions Comment Prioritise and publish LHEES/LAEP and related energy projects data on corporate systems Develop a process for update and improvement with support from the Council’s Corporate Data Team. The Council will continue to work, with partners, to further target areas at a granular level such as neighbourhood or postcode level to prioritise a pipeline of projects for delivery. Working through with SSEN, using the LENZA platform, digital twins for the Council estate and through development of commercial delivery models for strategic investment (e.g. Strategic Energy Partnership), the Council can continue to prioritise low carbon projects and programmes, informed by a whole energy systems approach, through to delivery. 7.7 Governance The priorities for the next year are to: Priority Actions Comment Continue to host the LHEES/LAEP delivery groups to work collaboratively and help deliver some of the non-PKC owned actions with other agencies. Continue to monitor and evaluate the LHEES/LAEP master action plan and associated Key Performance Indicators (KPIs’). Report on annual changes and make sure it aligns with changing national targets and strategic priorities. Publish communications on the overall benefits of heat pumps and solar PV. Overall engagement with residents, communities, businesses and private landlords is important to decarbonise properties and reach our net zero targets. It also ensures there is awareness of the key heat transition and energy efficiency priorities for Perth and Kinross until 2029.
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Strategic Energy Partnership Board has been established spanning several services across PKC and is meeting regularly to progress the procurement. The Competitive Dialogue procurement process is due to launch in November 2025 with a view to contract award in September 2026. PKC has also joined a UK Net Zero network of cities that will share experience and encourage investment in Strategic Energy Partnerships. 8. Monitoring and Review 8.1 Actions are being implemented through the Council’s LHEES/LAEP Coordination Team, LHEES/LAEP Steering Group, delivery groups and by operational teams. All associated groups continue to build on the strong partnerships already in place, new collaborators, while recognising that achieving LHEES/LAEP priorities will require a collective effort from delivery partners, stakeholders, communities, and residents of Perth and Kinross. 8.2 The LHEES/LAEP action tracker is a live document and continually reviewed during coordination team meetings to make sure any actions that have stalled or not been started, can be discussed and remedied. 8.3 The LHEES/LAEP KPIs have been developed in line with other strategies including the climate change action plan, mobility strategy, local housing strategy, local development plan, investment blueprint and PKC decarbonisation programme. The associated KPIs will be monitored at coordination group meetings and continually assessed using a variety of PKC owned and external data sets. The KPIs relate to the overall target of the LAEP theme and have an associated measurement to show how the KPI can be monitored and completion date reviewed effectively. 9. Conclusion 9.1 The report outlines the progress in implementing the Delivery Plan (2024- 2029) for the Local Heat & Energy Efficiency Strategy (LHEES) and Local Area Energy Plan (LAEP) (2024-2045) approved at Climate Change & Sustainability Committee on 27 November 2024 and the priorities for the next 12 months. 10. Impact Value Assessment 10.1 This report has been classified as being an operational report and as such does not require a full Impact and Value Assessment.
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11. Appendices 11.1 Appendix I - Updated LHEES/LAEP delivery plan 11.2 Appendix II - KPI Spreadsheet