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Appendix 1 - Local Heat and Energy Efficiency Strategy 2024-45

Perth and Kinross Council · 27 November 2023
Back to Climate Change and Sustainability Committee — 27 November 2023 and its agenda

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LHEES Strategy 2024-2045  November 2023
Appendix 1 
Perth and Kinross 
Local Heat & Energy Efficiency
Strategy 
2024-2045 
DRAFT 
Perth & Kinross Council
November 2023

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LHEES Strategy 2024-2045  November 2023
Contents
1. FOREWORD..................................................................................................................................... 5
2. EXECUTIVE SUMMARY.................................................................................................................... 7
3. INTRODUCTION ............................................................................................................................ 10
4. WHAT IS A LHEES? ........................................................................................................................ 11
5. POLICY AND STRATEGY CONTEXT ................................................................................................ 13
5.1 National and UK Context ............................................................................................................ 13
5.2 Perth and Kinross Context .......................................................................................................... 22
6. PERTH AND KINROSS BASELINE .................................................................................................... 24
6.1 Domestic baseline ...................................................................................................................... 24
Poor energy efficiency .................................................................................................................. 25
Fuel Type ...................................................................................................................................... 25
Fuel poverty .................................................................................................................................. 26
6.2 Non-domestic baseline ............................................................................................................... 28
7. VISION, OUTCOMES AND TARGETS .............................................................................................. 32
7.1 LHEES Vision ............................................................................................................................... 32
7.2 LHEES Outcomes......................................................................................................................... 32
7.3 LHEES targets .............................................................................................................................. 33
8. LOCAL CHALLENGES AND OPPORTUNITIES .................................................................................. 36
8.1 Barriers and Challenges .............................................................................................................. 36
Physical building stock .................................................................................................................. 36
Affordability and tenure ............................................................................................................... 37
Funding ......................................................................................................................................... 37
Public awareness and buy-in ........................................................................................................ 37
Skills and supply chain .................................................................................................................. 38
Lack of regulation and misalignment of national targets ............................................................ 38
Grid capacity ................................................................................................................................. 39
Data availability ............................................................................................................................ 39

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8.2 Opportunities ............................................................................................................................. 40
Use of natural assets, waste heat and new technologies ............................................................ 40
Hydrogen ...................................................................................................................................... 40
Green jobs and building a green economy .................................................................................. 40
Financing ...................................................................................................................................... 41
Public-Private Collaboration ......................................................................................................... 41
Co-benefits ................................................................................................................................... 41
9. ENGAGEMENT AND CONSULTATION ........................................................................................... 42
9.1 Engagement in strategy development ....................................................................................... 42
9.2 Outputs of community consultation .......................................................................................... 44
9.3 Impact Assessments ................................................................................................................... 46
10. STRATEGIC PRIORITIES .............................................................................................................. 47
10.1 LHEES Priorities......................................................................................................................... 47
10.2 Strategic Zoning ........................................................................................................................ 48
10.3 Strategic vs Delivery zoning for priorities ................................................................................ 49
10.4 Strategic Priority 1a: “Delivering decarbonised heat within a transitioning energy system –
Heat Network Zones” ....................................................................................................................... 50
Approach for Identifying Potential Heat Network Zones............................................................. 50
Potential Heat Network Zones ..................................................................................................... 51
Perth City Centre Heat Network .................................................................................................. 57
Blairgowrie, Kinross and Auchterarder Potential Heat Networks ............................................... 57
10.5 Strategic Priority 1b: “Delivering decarbonised heat within a transitioning energy system -
Heat Pumps” ..................................................................................................................................... 58
Off-gas social housing energy efficiency Category 1 suitable for heat pump .............................. 59
Off-gas private homes suitable for heat pump retrofit ............................................................... 59
Social housing that requires energy efficiency improvements to enable suitability for heat
pumps ........................................................................................................................................... 60
10.6 Strategic Priority 2a: “Improving buildings’ energy efficiency to meet regulatory standards”
.......................................................................................................................................................... 60

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Non-domestic buildings that require retrofit to meet regulatory targets ................................... 62
10.7 Strategic Priority 2b: “Improving buildings’ energy efficiency aiming for affordable warmth”
.......................................................................................................................................................... 62
11. DELIVERY PLAN .......................................................................................................................... 64
11.1 Delivery Plan Priorities ............................................................................................................. 64
11.2 Delivery Plan Area Criteria ....................................................................................................... 66
11.3 LHEES/LAEP Live Delivery Plan ................................................................................................. 67
11.4 Key supporting delivery mechanisms ....................................................................................... 68
Taking a Whole Energy Systems Approach .................................................................................. 68
Developing green skills and the capacity of the supply chain ..................................................... 69
Working in partnership with communities to build community wealth and wellbeing .............. 71
Mobilising partners and public and private investments for projects ......................................... 72
12. GOVERNANCE AND MONITORING ............................................................................................ 74
12.1 Governance .............................................................................................................................. 74
12.2 Monitoring ................................................................................................................................ 75
13. GLOSSARY .................................................................................................................................. 76
13.1 Abbreviations ........................................................................................................................... 76
13.2 Terms ........................................................................................................................................ 77
14. APPENDICES ............................................................................................................................... 80

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1. FOREWORD
I am delighted to introduce Perth and Kinross Council’s first Local Heat & Energy
Efficiency Strategy (LHEES) which sets our ambitions until 2045. This Strategy and
accompanying 5-year Delivery Plan (2024-2029) detail our approach to improve Perth and
Kinross buildings’ energy efficiency and to decarbonise heat in a fair and just way within a
changing energy system. 
Energy Efficiency and heat decarbonisation are core elements of the energy transition to
Net Zero by 2045 tackling climate and biodiversity emergencies. To achieve this means all
building owners in Perth and Kinross will need to do their part to cut their emissions. This
strategy details how we as a Council area will approach this challenge. 
Our ambitions for Perth and Kinross are reflected across two strategic priorities and
multiple actions. These focus on identifying, prioritising, and delivering measures to
improve buildings’ energy efficiency, and where this is not possible to make a commitment
to complete further research. 
For a successful transition, our LHEES also emphasises the need for a just transition to
Net Zero. This includes actions focussing on tackling fuel poverty by aiming to improve
energy efficiency to reduce fuel bills; developing a resilient, stronger, and greener economy
with green skills and jobs; working in partnership with communities to build community
wealth and wellbeing from heat transition and mobilising partners and private and public
investment to drive the heat transition to low and zero emissions heating. 
We also want to create from the LHEES process the foundations for a more decentralised
and self-sufficient energy system for our area. We have seen the consequences of not
being self-reliant on energy as a result of global events and the spike in gas prices that
has had an impact on everyone’s energy bills. There is a commitment from UK, Scottish
and local governments to increase our energy security so that this can’t happen again. 
This Strategy was informed by developing a rigorous evidence-base and through
engagement with partners across Perth and Kinross and beyond. Ongoing collaboration,
including sharing of knowledge, data, and innovations has been key to the development of
Perth and Kinross’s LHEES and will be key to its successful delivery.

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With over half of Scottish energy demand in 2020 being for heating purposes, everyone in
Perth and Kinross will either help support and deliver LHEES through improving their
homes and businesses; or experience the benefits of these measures by having more
energy efficient homes and workplaces with low or zero emissions heating. 
I would like to thank everybody for their participation in developing the Strategy and its
future delivery. 
Cllr Richard Watters
Convener of Climate Change and Sustainability Committee

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2. EXECUTIVE SUMMARY
Perth and Kinross Council has a statutory duty to prepare a Local Heat and Energy
Efficiency Strategy and update it on a 5-year basis as part of the Local Heat and Energy
Efficiency Strategies (Scotland) Order 2022 which came into force on 21 May 2022.  As
established in the Order, LHEES should have a two-part structure of a Strategy and
Delivery Plan. 
A Local Heat and Energy Efficiency Strategy is a long-term strategic framework for the
improvement of the energy efficiency of buildings in the local authority’s area, and the
reduction of greenhouse gas emissions resulting from the heating of such buildings. A
delivery plan is a document setting out how a local authority proposes to support
implementation of its local heat and energy efficiency strategy. 
The first Perth and Kinross Local Heat and Energy Efficiency Strategy (LHEES) (2024-
2045) and accompanying 5-year Delivery Plan (2024-2029) is firmly aligned to the priorities
and vision of the Council and its partners for a Perth and Kinross where everyone can
live life well, free from poverty and inequality. 
The LHEES 2024-2045 reflects the views of our communities, elected members,
stakeholders, and partner organisations. These views have helped influence the
development of the LHEES priorities and outcomes which are most important for Perth and
Kinross. They will enable Perth and Kinross Council and partners to deliver more energy
efficient homes and buildings, affordable warmth and heat decarbonised sources. 
The LHEES vision for Perth and Kinross is that “by 2045, our homes and buildings will be
more energy efficient and with more decarbonised heat sources providing more affordable
warmth and no longer contributing to climate change”. This will lead to the outcomes of
significant reduction in carbon emissions, affordable and sustainable heating and health
and well-being benefits. 
The LHEES targets are aligned with the Scottish Targets and will be used to measure
progress in the Delivery Plan (2024-2029) and subsequent plans. However, it is recognised
that these targets would be very challenging if no significant public and private investments
are made available or come forward as well as if behaviours are not changing. This would
be particularly the case for private households and small and medium businesses.

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To support the LHEES vision and outcomes, the Strategy focus on two Strategic Priorities: 
•  Decarbonising heat within a transitioning energy system focusing on heat networks
and heat pumps.
•  Improving buildings’ energy efficiency aiming for affordable warmth and regulatory
compliance. 
These are broken down into the following delivery priorities: 
- Delivering decarbonised heat within a transitioning energy system through Heat
Network Zones which would include Perth City Centre, Perth Inveralmond Industrial
Estate, Perth College/UHI, Perth Academy, Auchterarder, Kinross and Blairgowrie. 
- Delivering decarbonised heat within a transitioning energy system - Heat Pumps
focusing on off-gas social housing energy efficiency Category 1 highly suitable for a
heat pump installation (i.e. well insulated property with a wet system), off-gas
private homes suitable for heat pump retrofit and social housing that requires
energy efficiency improvements to enable suitability for heat pumps. 
- Improving buildings’ energy efficiency to meet regulatory standards in
o areas with concentrations of social housing having poorer energy efficiency
(below EPC B) and low costs of intervention, 
o areas where substantial energy and CO2 emissions savings can be achieved
for privately owned homes (below EPC C) if cost effectiveness could be
achieved when combined with the areas above and 
o areas with high potential for heat demand savings in non-domestic buildings
with lower cost retrofit interventions. 
- Improving buildings’ energy efficiency aiming for affordable warmth in areas where
poor energy efficiency is the highest and acts as a driver of fuel poverty,
particularly if low cost retrofit options are possible and areas where social housing
is likely to experience a greater reduction in fuel poverty due to low cost retrofit
measures.

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The delivery of the LHEES priorities will also be supported by the following
mechanisms: 
- Taking a Whole Energy Systems Approach: Through the development of the Local
Area Energy Planning (LAEP) and a collection of complementary initiatives, the
Council is taking a whole systems energy approach to the development and
implementation of the LHEES from generation through to demand. This would
include data and scenarios building tools and platforms, Council’s Estate
decarbonisation programme and business case development toolkit to develop an
investment programme enabling Smart Local Energy Systems. 
- Developing green skills and the capacity of the supply chain. 
- Working in partnership with communities to build community wealth and wellbeing. 
- Mobilising partners and public and private investments for projects including through
a possible Strategic Energy Partnership to unlock delivery of, though potentially not
limited to, heat networks.

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3. INTRODUCTION
Perth and Kinross Council has declared Climate Change and Biodiversity emergencies. A
Climate Change Strategy and Action Plan have been approved and all partners are
mobilised to implement agreed actions. Heat decarbonisation and improving energy
efficiency are at the centre of our efforts to achieve net zero by 2045. 
As established in the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022,
Perth and Kinross Council has a duty to prepare a Perth and Kinross Local Heat and
Energy Efficiency Strategy (LHEES). 
Perth and Kinross LHEES is at the heart of a place based, locally-led and tailored
approach to the heat transition. Our ambition is to use it to develop a whole energy
planning approach going beyond heat and energy efficiency to include transport
decarbonisation, local renewable energy generation, energy storage, demand-side flexibility
and networks. 
This document presents the first Perth and Kinross Local Heat and Energy Efficiency
Strategy (LHEES) (2024-2045) and accompanying 5-year Delivery Plan (2024-2029). Firstly,
it presents what a LHEES and provides policy and strategy context and baseline for Perth
and Kinross domestic and non-domestic buildings.  Then, it details our vision, outcomes
and targets and presents our local challenges and opportunities and our engagement and
consultation process. Finally, it details our strategic priorities, deliver plan and governance
and monitoring arrangements.

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4. WHAT IS A LHEES?
A LHEES focuses on transforming and reducing the demand for heat and energy.
LHEES are at the heart of a place based, locally led and tailored approach to the heat
transition. These local strategies will underpin an area-based approach to heat and energy
efficiency planning and delivery. Scottish Local Authorities have a statutory duty to prepare
LHEES and update them on a 5-year basis.
A LHEES should have a two-part structure of a Strategy and Delivery Plan. Perth and
Kinross LHEES Strategy will:
• set out how each segment of the building stock needs to change to meet
national and local objectives, including achieving zero greenhouse gas emissions
in the building sector, and the removal of poor energy efficiency as a driver of
fuel poverty. 
• identify strategic heat decarbonisation zones, and set out the principal measures
for reducing buildings emissions within each zone; and  
• prioritise areas for delivery, against national and local priorities. 
National guidance frames the Strategy around six considerations which have shaped our
development of strategic and delivery priorities, as shown in Table 1.
Table 1 National LHEES considerations
LHEES Considerations
Heat decarbonisation Off-gas grid buildings
On-gas grid buildings
Heat networks
Energy efficiency and
other outcomes
Poor building energy efficiency
Poor building energy efficiency as a driver for fuel poverty
Mixed-tenure, mixed-use and historic buildings

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Recognising the need for compatibility with the wider energy system, Perth and Kinross
Council is developing a Local Area Energy Plan (LAEP). The relationship between the
LHEES and LAEP is shown in Figure 1. The LAEP will support collaboration with network
operators, and other key stakeholders, to inform the development of targets as well as
deliverable actions within a net zero energy system that balances out energy generation,
transmission, storage and usage, including heat, at a substation area and Council wide
scale, through to 2045.
Figure 1 Overview of LHEES and LAEP
Alongside this, the Council is working to prepare a Council Estate Decarbonisation Plan for
its own building stock. The Council is also developing a toolkit that will assess LHEES
and LAEP delivery actions and areas to develop a pipeline of investable energy projects to
inform Smart Local Energy Systems (SLES).  These aligned programmes of work will
support the delivery of our LHEES and are further explored in the Delivery Plan section.

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5. POLICY AND STRATEGY CONTEXT
5.1 National and UK Context
This section summarises the national and UK level strategies and legislations that set out
the key drivers behind LHEES.
Climate Change Plan Update (2018-2032)
This update to Scotland's 2018-2032 Climate Change Plan sets out the
Scottish Government's pathway to the new and ambitious targets set by the Climate
Change Act 2019. The main target is that by 2045, Scotland will be net-zero.
Furthermore, by 2032:
• 35% of heat for domestic buildings will be supplied using low
carbon technologies, where technically feasible, and all buildings (residential
and non-domestic) will be insulated to the maximum appropriate level.
• 70% of heat and cooling for non-domestic buildings will be supplied using
low carbon heat technologies. 
• Improvements to the building fabric of Scotland’s buildings will result in a
15% reduction in residential and 20% in non-residential heat demand. 
Key outcomes relevant to the LHEES are shown in the table below:
Action Number/
Reference
Action
Buildings – Outcome 1 The heat supply to our homes and non-domestic
buildings is very substantially decarbonised, with high
penetration rates of renewable and zero emissions
heating 
Buildings– Outcome 2 Our homes and buildings are highly energy efficient,
with all buildings upgraded where it is appropriate to do
so, and new buildings achieving ultra-high levels of
fabric efficiency

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Buildings – Outcome 3 Our gas network supplies an increasing proportion of
green gas (hydrogen and biomethane) and is made
ready for a fully decarbonised gas future
Buildings – Outcome 4 The heat transition is fair, leaving no-one behind and
stimulates employment opportunities as part of the
green recovery. 
Heat in Buildings Strategy (2021)
The Heat in Buildings (HiB) Strategy sets out the Scottish Government’s vision for the
future of heat in buildings, and the actions they are taking in the buildings sector to
deliver climate change commitments, maximise economic opportunities, and ensure a just
transition, including helping address fuel poverty. 
The key targets are as follows: 
• Majority of buildings should achieve a good level of energy efficiency by
2030 and all homes should meet an EPC band C standard by 2033. 
• All social housing to meet EPC B, or be as energy efficient as
practically possible, by the end of 2032; all private rented sector properties
to reach a minimum standard of EPC C by 2028 where technically feasible
and cost effective. 
• A 68% reduction in emissions from heat in buildings by 2030 (relative to
2020 levels).
The HiB Strategy sets out the aspirations for LHEES, in particular to:
• Support local community and wider national infrastructure issues
• Act as an investment prospectus at national and local level, guiding
delivery programmes, and signalling potential areas of investment to market
actors.

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• Support planning for the energy networks and over time will become
an important evidence base for both the electricity Distribution Network
Operators (DNOs) and Gas Distribution Network (GDN).
• Local public engagement, awareness raising and involvement in decision making
• Supporting area based regulation
The HiB Strategy sets out the ambition for regulation in Scotland for heat decarbonisation
and energy efficiency performance.
Heat Networks (Scotland) Act 2021 and Heat Networks Delivery Plan
The Act aims to accelerate the deployment of heat networks in Scotland through
the introduction of a regulatory system aimed at boosting consumer confidence in
the sector and providing greater certainty for investors. This Act supports the growth
of heat networks through a number of initiatives including ensuring that heat networks are
developed in appropriate areas to maximise investor benefits and drive prices down for
users and ensuring local communities are aware of developments which can support future
users for heat networks. Targets include 2.6 TWh of heat to be supplied by heat networks
by 2027 and 6 TWh by 2030. 
The Act focuses on regulating the construction and operation of a heat network; making
provisions about the powers of persons holding a heat networks licence; making provisions
about conferring rights in heat network assets where a licence holder ceases operations;
and for connecting purposes. The Heat Networks Delivery Plan sets out how the provision
in the Act will be used to accelerate the deployment of heat networks in line with national
targets. 
Section 47 of the Heat Networks (Scotland) Act places a duty on local authorities to carry
out a review to consider whether one or more areas in its area is likely to be particularly
suitable for the construction and operation of a heat network. The LHEES Methodology
sets out an approach to support local authorities to discharge this duty. This Methodology
has been followed when preparing the Council’s LHEES. In carrying out a review under
Section 47(1), a local authority must have regard to the matters mentioned in Section
48(1).  Heat Network Zones (designated by Local Authorities as per regulatory
requirement) will be put out to a competitive tender process whereby operators who have

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first gained a licence and project-specific consent will bid for a zone permit (likely granting
exclusivity to operate over a long-term period though this is yet be clarified). The
secondary legislation is currently in development and will clarify the scope of the Act and
how operators and public sector bodies will interact with it. A summary of the key
provisions in the Act is included below:
Heat Network Act theme Description
Heat Networks Licence Prospective heat network operators will
have to first obtain this licence with the
intention of ensuring that market
participants are solvent, competent, fit
and proper and can provide their
essential service in line with conditions
set by a Licensing Authority, with
ongoing monitoring and enforcement
where necessary. This, in turn, will
provide assurances to both consumers
and investors in deciding whether to
become involved in the sector
Heat Network Consents The requirement to attain project-
specific consent will ensure that projects
are vetted to assess how they will
contribute to targets on emissions
reduction or fuel poverty. Heat network
operators will have to obtain this
consent if they are to progress with any
prospective heat network project in
Scotland. The consenting authority
would most likely be Scottish Ministers
due to the risk of self-regulation if local
authorities were to take on this
responsibility.

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Heat Network Permits Heat networks are in-effect mini grids,
isolated from the wider gas grid. This
means that operators do not have the
same floating customer base in which
to recover their costs from that gas and
electricity operators benefit from.
Granting operators long-term permits
seeks to mitigate against this by
providing a natural monopoly following a
competitive tender process. The
guarantee that operators will have
exclusivity within a designated Heat
Network Zone will provide certainty of a
steady return on investment. Giving
operators confidence that they will be
able to recover their costs over a long
period of time increases the commercial
viability of a heat network. This
confidence will allow investors to target
more ambitious projects. It is not yet
clear what the permitting element of the
Heat Networks Act will mean for
operators and the Council will continue
to engage with the Scottish Government
on the development of secondary
legislation for the Act.
Heat Network Zones To fully maximise the benefits of a heat
network, strategic planning is required
to identify zones that have the most
potential. This zone-specific approach
allows buildings with significant heat
demands (anchor loads) to be identified,

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along with possibilities to utilise
renewable sources for the supply. The
requirement to identify and legally
designate heat networks zones by local
authorities will provide an informed
evidence base which will enable long-
term planning around where a heat
network is commercially attractive and
how they can advance key strategic
goals around decarbonisation and fuel
poverty. This provision of the Act has
now come into force and more
information can be accessed here
Building Assessment Reports (BARs) This puts a duty on the public sector to
assess their estate for suitable heat
network connection. This will provide
clarity on heat demand alongside
connection suitability from an
architecture perspective. Whilst this only
applies to the public sector at present,
this may extend to all non-domestic
buildings in the future. His provision of
the Act has now come into force.
Powers of Licence Holders This aspect of the Act will equip heat
network licence holders with statutory
undertaking powers. Operators will have
similar wayleave and access rights
granted to other utility providers. Such
rights can be in relation to compulsory
acquisition of land, wayleaves, survey
works, and access to carry out work.

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This aims to reduce capital costs
connected to construction and the
associated delays often suffered. The
Scottish Government are currently
considering whether to extend this right
to the road network, something that
conventional utilities have rights over.
Network wayleave rights will also be
granted to operators. This will enable
operators to request from the Scottish
Ministers the right to install pipework
and other apparatus up to any building.
The building owners will be under no
obligation to connect, but the ability to
connect in the first place will provide
operators with a higher degree of
confidence in future asset connection.
Heat Networks Assets Schedule and
Transfer Regime
This element of the Act requires heat
networks to have a scheme in place to
transfer operational rights to a third
party to ensure sustained supply, if and
when needed. 
Fuel Poverty (Targets Definition and Strategy) (Scotland) Act 2019. 
The Act sets out a new target relating to the eradication of fuel poverty, as well
as providing a revised definition of fuel poverty. By 2040: no more than 5% of households
in Scotland are in fuel poverty; no more than 1% of households in Scotland are in
extreme fuel poverty. 
LHEES should be primarily driven by Scotland’s statutory targets for greenhouse gas
emissions reduction and fuel poverty. The LHEES Strategy and Delivery Plan should

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therefore seek to implement actions and delivery that support fuel poverty alleviation. It
should be noted though, that the LHEES Consideration only covers fuel poverty driven by
poor energy efficiency.
Scottish Energy Strategy & Just Transition Plan (Scottish Government) 
Published in January 2023 this sets out how Scotland will meet the challenge of reducing
demand within main energy-using sectors such as heat in buildings, transport, industry and
agriculture whilst using energy more efficiently, and becoming largely decarbonised by
2030. The Strategy identifies the requirement of significant investment to fund the transition
and suggests a financing policy model that will seek to leverage private sector investment
to support public investment. The Plan is currently under consultation.
Housing to 2040 (Scottish Government)
Housing to 2040 sets out a vision for housing in Scotland to 2040 and a route map to get
there. It aims to deliver an ambition for everyone to have a safe, good quality and
affordable home that meets their needs in the place they want to be. This will inevitably
include affordable low carbon heating systems.
National Planning Framework (NPF4) (Scottish Government) 
Published in February 2023, The National Planning Framework 4 (NPF4) sets the context
for development planning in Scotland and provides a framework for the spatial
development of Scotland as a whole. It is a statutory document and all planning
applications must consider the policy implications of NPF4. NPF4 requires that Local
Development Plans take into account the area’s LHEES and that the spatial strategy
should take into account areas of heat network potential and any designated Heat Network
Zones. Policy 19 sets out the development management considerations which will facilitate
and enable new developments to incorporate and promote LHEES. 
NPF4 will be a key influence on the revised Local Development Plan (LDP) for Perth &
Kinross and will stipulate how planning policy can be used at local level towards the
achievement of strategic goals. LHEES and the LDP should incentivise developers to
switch to communal heating systems or connect to a larger district heating scheme,
particularly in designated Heat Network Zones. NPF4 will also place greater emphasis on
the environment and sustainability against aspects relating to heritage protection.

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New Build Heat Standard (forthcoming)
From 1 April 2024, new buildings in Scotland applying for a building warrant will be
required to use zero direct emissions heating systems (ZDEH) to meet their space and hot
water heating and cooling demands. This will include systems such as heat pumps and
heat networks. The Council will need to incorporate these requirements into the next Local
Development Plan to incentivise heat network connection where practical and feasible.
Hydrogen Policy Statement (2020) (Scottish Government)
This sets out the vision for Scotland to become a leading hydrogen nation in the
production of reliable, competitive, sustainable hydrogen.  Whilst hydrogen is not likely to
be widely used as a fuel source for district heating, it is being introduced in a pilot
scheme to 300 premises in Fife as part of a H100 trial project to promote renewable
energy generated hydrogen for heating and cooking.
Tenements (Scotland) Act 2004 
A Tenement Management Scheme, is outlined in Schedule 1 of the Tenements (Scotland)
Act 2004, lists the ‘scheme property’ (explaining what parts for the tenement every flat
owner should maintain) and explains how to come to arrangements about maintenance
(‘scheme decisions’) and how costs are shared between owners. The Climate Change
(Scotland) Act 2009 amends the Tenement Management Scheme to log insulation
installation as a maintenance measure rather than an ‘improvement’ so changes can be
approved via a majority rather than unanimously.  Tenements (and Multi-Dwelling Units –
MDUs) are a challenge for the LHEES as cooperation is required from a number of
owners for any works to the buildings fabric and communal areas.
Historic Environment Policy for Scotland (HEPS) (May 2019) 
The Historic Environment Policy for Scotland (HEPS) is non-statutory, but relevant to a
wide range of decision-making at national and local levels. It is supported by detailed
policy and guidance. HEPS outlines six policies on managing change to the historic
environment most notably HEP5 - Decisions affecting the historic environment should
contribute to the sustainable development of communities and places.

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The Planning (Listed Building Consent and Conservation Area Consent Procedure)
(Scotland) Regulations 2015
Listed building consent is the mechanism by which planning authorities ensure that any
changes to listed buildings are appropriate and sympathetic to their character. Conservation
area consent controls the demolition of unlisted buildings in conservation areas. Both are
important considerations when it comes to installing heat pumps or other technology and
energy efficiency measures (such as external insulation) to the fabric of buildings.
Review of Electricity Market Arrangements (REMA)
The UK Government in 2022 launched a major review into Britain’s electricity market
design to identify opportunities for consumers to benefit from cheaper energy and
enhanced energy security in the longer term. Proposals under the scope of REMA include
the exploration of fundamental changes to the electricity market to remove volatile gas
prices from setting the wholesale cost of electricity, allowing consumers to benefit from
lower cost renewable energy. The outcomes of REMA are critically important to the
successful delivery of the LHEES where it relates to heat pumps and district heating
where the supply relies on electricity. To remove the influence of gas on electricity prices
will reinforce the business case for the electrification of heat in Perth & Kinross.
5.2 Perth and Kinross Context
At a local level a suite of policy documents have been identified through the Policy review
with linkages to the drivers and priorities for developing and implementing LHEES, as set
by the Scottish Government. Key local policies and strategies include:
• Climate Change Strategy and Action Plan – Produced in 2021, this sets out the
Council’s next steps in relation to climate change, outlining the initial route map to
support them to a net zero carbon and climate resilient Perth and Kinross, and
identifies energy and buildings as a key requirement for change. The strategy
commits to developing heat networks, where possible, helping to confirm LHEES as
fundamental in reaching statutory targets. 
• Local Housing Strategy 2022-2027 – Priorities include a goal to deliver
quality homes with affordable warmth, zero emissions and SMART
technology. Intended outcomes that will drive these include supporting the

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implementation of the Council’s LHEES; expanding the capacity of energy and fuel
poverty advice services; and improving the availability of information on fuel poverty
and energy efficiency measures available to front line staff and service providers
to households most in need.
• Local Development Plan 2 – There are four main categories in the LDP: to create
a successful, sustainable place; a low-carbon place; a natural, resilient place; and a
connected place. Priorities include strategic district heating opportunity areas in
Perth, Crieff and Blairgowrie, and Policy 34: Sustainable Heating relates to the
coordination of Heat Network Zones, Major Developments and LDP Site Allocations.
• Community Plan (Local Outcomes Improvement Plan) – Strategic objectives include
reducing poverty, including fuel poverty, through a suite of actions and targets
including researching community renewable energy co-operative schemes elsewhere
in UK and assessing the feasibility of implementing these in Perth and Kinross.
• Corporate Plan 2022-2028 – The Plan sets out a vision for a Perth and
Kinross Council, where everyone can live life well, free from poverty and
inequality. Targets include 6.5% of council housing to meet minimum EPC B by
2023/24 and 12% by 2026/27.

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6. PERTH AND KINROSS BASELINE
This section provides a baseline of domestic and non-domestic buildings in Perth and
Kinross.
6.1 Domestic baseline
What is the current state of Perth and Kinross’s Housing? 
The baseline information has been summarised here to provide context for the remaining
sections. To read the full baseline document for LHEES, please visit this link.

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LHEES Strategy 2024-2045  November 2023
Poor energy efficiency
A significant proportion (58%) of domestic properties across Perth and Kinross have an
Energy Performance Certificate (EPC) rating of D-G, which is higher than the national
average of 51%. Key points include: 
• The proportion of detached or semi-detached houses in Perth and Kinross (55%) is
higher than national average (39%). This contributes to a larger number of external
walls.
• 45% of domestic properties having uninsulated walls, which is higher than the national
average of 41%.
• 58% of these uninsulated properties are solid stone in construction, which present
challenges when it comes to upgrading the building's structure.
• Larger properties will have a higher heating demand and be more expensive to
upgrade. 15% of properties in Perth and Kinross have 7 or more habitable rooms.
There is a significant spatial variation in energy efficiency by area across Perth and
Kinross, with Strathearn and Highland Perthshire having some of the lowest levels. 
Fuel Type
In Perth and Kinross, 63% of
domestic properties are currently
serviced by the gas grid, while 36%
of domestic properties are not
(known as being off-gas). This off-
gas proportion is significantly higher
than the national average. The
remaining 1% of properties have
unknown off-gas status. In on-gas
areas, 99% of properties are
currently connected to the grid. As can be seen from Figure 2, in off-gas areas there are
a number of fuel sources used. To decarbonise these properties, all properties on oil,   
, 2       
,  
,   Biomass
Electricity
LPG
o fuel
il
Solid
Figure 2 Breakdown of domestic fuel sources for off-gas areas

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LHEES Strategy 2024-2045  November 2023
Liquified Petroleum Gas (LPG) and solid fuel (e.g., coal) will need to transition to
alternative sources.
Fuel poverty 
Table 2 shows that the percentage of households in fuel poverty and extreme fuel poverty
in Perth and Kinross is higher than the national average. This is likely due to the old
building stock and the associated poor energy efficiency of properties in the area.  The
Scottish House Condition Survey (SHCS) 2019 is the most reliable data source available
to local authorities to estimate overall fuel poverty levels and how these vary spatially
across Perth and Kinross.1  However, since this was carried out, the increases in the
energy price cap in 2021 and 2022 have likely led to an increase in probability of fuel
poverty. To account for this the Scottish Government has developed an approach to
deriving an uplifted value to the October 2022 energy price cap as shown below. 
1 Note: The datasets to calculate accurate current fuel poverty levels is not currently available to Local
Authorities and so user surveys and proxy data must be relied upon to make best estimates.
What is Fuel Poverty? A 10% threshold is used in a two-part metric where a
household is in fuel poverty if:
‘After housing costs, the total fuel costs needed to maintain a satisfactory heating
regime are more than  0  of the household’s adjusted net income and if, after
deducting fuel costs, housing costs, benefits received for a care need or disability, and
childcare costs, the household’s remaining adjusted net income is insufficient to
maintain an acceptable standard of living’.  
What is Extreme Fuel Poverty? ‘Where more than 20% of the income after housing
costs is spent on required fuel costs and there is insufficient residual income to
maintain an acceptable standard of living.’  
Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019

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LHEES Strategy 2024-2045  November 2023
Table 2 - Fuel Poverty Levels and Extreme Fuel Poverty Levels
Scotland - SHCS
2019
Scotland - SCHS
2019 - Uplifted
value (2022)
Perth & Kinross
SCHS 2019 –
Original value
Perth & Kinross
SCHS 2019 -
Uplifted value
(2022)
Percentage of households
in fuel poverty
24%  35% 28% 63%
Percentage of households
in extreme fuel poverty
12% Not Available 18% 40%
The average probability of fuel poverty and extreme fuel poverty is higher in off-gas
properties than on-gas properties, as shown in Figure 3. In particular, off-gas properties
with electricity and solid fuel types tend to have a higher probability of fuel poverty. Heat
decarbonisation and energy efficiency improvements in off-gas properties therefore present
the opportunity to reduce fuel poverty. However, any recommendations for interventions in
heat decarbonisation should carefully consider the impact on fuel poverty, ensuring that it
is not exacerbated. 
Figure 3 Probability of fuel poverty for on-gas and off-gas properties (Note: Data is based on 2019 SHCS values as was not available
for the uplifted values)

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LHEES Strategy 2024-2045  November 2023
6.2 Non-domestic baseline
What is the current state of Perth and Kinross non-domestic properties? 
The baseline information has been summarised here to provide context for the remaining
sections. To read the full baseline document for LHEES, please visit this link.
Perth and Kinross non-domestic building stock is made up of 7,181 buildings with a total
annual heat demand of 810 GWh/yr.  In general, acquiring energy demand data for the
non-domestic sector is more challenging as valid EPCs are only in place for 19% of
properties in this sector. As such, heat demand data used in this baseline is based on
modelled heat demands.
The division of fuel type by property count is shown in Figure 4. Approximately 52% of
non-domestic properties are served by mains gas and this accounts for 63% of the total
annual heat demand.

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LHEES Strategy 2024-2045  November 2023  
As can be seen from Figure 5, the building typologies (sectors) with the largest heat
demand are educational buildings (i.e., schools, colleges, and universities), offices and
hotel buildings. 
• Educational buildings have the highest heating demand at ~112 GWh.
Approximately 59% of these buildings rely on gas. 
• Perth and Kinross is home to around 1,000 office buildings, which collectively
contribute to 13% of the total non-domestic heat demand (108 GWh). 
• Hotels, which include individual holiday rental properties, have a total annual
heat demand of 104 GWh. Compared to other building typologies, hotel buildings
have a lower proportion of heat demand met by gas (48%, 50 GWh), which is
likely to be attributed to their rural location. 
• Light industry and manufacturing accounts for 11% of non-domestic heat demand
in Perth and Kinross. Heavy industry and manufacturing only accounts for <1%
of the heat demand. It is important to recognise that this figure may potentially
be larger in reality, as certain process demands might not be accounted for in
the formation of the dataset used. 
Electricity
Gas
LPG
ff Gas Unknown
il
ther
Biomass
Figure 4  Heat source for non-domestic properties (by count of property)

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LHEES Strategy 2024-2045  November 2023
The non-domestic heat demand is not uniformly distributed across Perth and Kinross.
Strategic actions and zones are defined at a data zone level which is a common
geography used across the public and private sector to represent communities and have
populations of 500 to 1,000 residents. The data zones with the highest heat demand from
non-domestic buildings are those that contain industrial estates or large campuses, such
as Perth Royal Infirmary, and in urban centres such as Perth City Centre.
Figure 5 Building typology (sector) by heat source 
The proportion of heat demand used for providing hot water will influence the zero-
emissions heating system used to meet heat demand. Figure 6 shows the heat demand
for each building typology, split by space heating and hot water demand. Hotels and
health sector buildings have a higher proportion of hot water demand compared to other
building typologies. These building typologies also tend to have high peak demands which
will impact system sizing and may require a secondary heating system to ensure peak
demands can be met.
0 1000 2000 3000 4000 5000 6000 7000 8000
Grand Total
Hotels
Retail
Offices
Light manufacturing and industry
Storage and distribution
Education
Clubs and community centres
Cafes, pubs, restaurants and takeaways
Place of worship
Agricultural
Health
Museums, art galleries, libraries and law courts
General sports and leisure
Emergency services
Other
Heavy manufacturing and industry
Large entertainment sites
Military and prison
Electricity Gas Condensing Boiler LPG
Off Gas Unknown Oil Boiler Other
Wood Pellet Boiler

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LHEES Strategy 2024-2045  November 2023
Figure 6 Split of heating demand by building typology

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7. VISION, OUTCOMES AND TARGETS
This section presents the LHEES Vision, Outcomes and targets.  
7.1 LHEES Vision 
Informed by the evidence and working with stakeholders, a vision for Perth and Kinross
LHEES (2024-2045) has been developed. 
Perth & Kinross Council supports Scotland’s Heat in Buildings Strategy vision that by 2045
our homes and buildings are cleaner, greener, easy to heat, and no longer contributing to
climate change, as part of the wider just transition to net zero. 
The vision for Perth and Kinross’s first Local Heat and Energy Efficiency Strategy is:
The vision for Perth and Kinross’s first LHEES is set within the overall ambition to become
Net Zero by 2045 which the Council committed to in December 2021. The Council is also
committed to a 75% reduction in carbon emissions across its area by 2030 and to make
all its own buildings net zero by 2038.  
7.2 LHEES Outcomes
The vision will achieve significant outcomes including: 
Vision
By 2045, our homes and buildings will be more energy efficient
and with more decarbonised heat sources providing more
affordable warmth and no longer contributing to climate change.

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Significant Reduction in Carbon Emissions: widespread adoption of energy-efficient
technologies and decarbonised heat sources will have led to a substantial reduction in
carbon emissions from homes and buildings. 
Affordable and Sustainable Heating: heating in homes and buildings will become more
affordable, with a greater reliance on renewable and low-carbon energy sources. This will
reduce energy bills for residents and businesses while promoting sustainability. As energy
becomes more affordable and efficient, it will help alleviate fuel poverty, ensuring that
vulnerable communities have access to the warmth and comfort they need without
straining their finances. 
Health and Well-being Benefits: Energy-efficient building designs and technologies will
lead to improved indoor comfort levels, ensuring that people can enjoy warm and
comfortable living and working spaces without the need for excessive energy consumption.
Reduced pollution will improve air quality. 
7.3 LHEES targets
The Perth and Kinross LHEES is driven by Scotland’s overarching statutory targets for
greenhouse gas emissions reduction and fuel poverty: 
The key targets and the current Perth and Kinross position are outlined in 
Table 3 to Table 5.

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LHEES Strategy 2024-2045  November 2023 
Table 3 - Energy efficiency targets against Perth & Kinross Baseline
Key Targets – Housing
Stock 
Target Year
P&K Level of
Compliance
value
Number of
households/properties
requiring retrofit
Estimated
retrofit costs
(£M)
All Social Housing EPC D or
Above
2026 93%  1,100 (Included in
EPC B total)
All Social Housing EPC B or
Above 
2032 17% 13,600 £145.1
All Domestic Private
Rented Properties EPC C or
Above
2028 28% 8,700 £147.5
All properties should meet
EPC Band C (residual
Owner Occupier)
2033 32% 31,400 £616.1 
Table 4 - Fuel Poverty targets against Perth & Kinross Baseline
Key Targets – Fuel Poverty Target Year
P&K Current
Fuel Poverty
Levels
Number of
households
currently in
fuel poverty
No more than 5% of households in fuel poverty
(More than 10% of net household income on fuel)
2040 63% 44,900
No more than 1% of households in extreme fuel
poverty
(More than 20% of net household income on fuel)
2040 40% 30,200

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Table 5 - Heat decarbonisation targets against Perth & Kinross Baseline
Key Targets – Heat and
Decarbonisation
Target Year
P&K
Current
value
Estimated number of
households/properties
requiring interventions
70% of heat for non-domestic buildings
will be using low carbon technologies
2032 9% 4,300
35% of domestic heat demand will be
supplied using low carbon technologies
2032 18% 12,700 
Given the statutory targets for Scotland are already ambitious with respect to the other
nations in the UK and the huge scale of the transformation required in Perth and Kinross
to meet these, Perth and Kinross LHEES targets are aligned with the Scottish statutory
heat and energy targets. However, it is recognised that these targets would be very
challenging if no significant public and private investments are made available or come
forward as well as if behaviours are not changing. This would be particularly the case for
private households and small and medium businesses.

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8. LOCAL CHALLENGES AND OPPORTUNITIES
Delivering a heat and energy transformation at the scale required to meet the Scottish
Government requirements and Perth and Kinross ambitions poses both significant barriers
and challenges and offers significant opportunities.
8.1 Barriers and Challenges
Several barriers and challenges to delivering the LHEES and reaching our strategic aims
have been identified by PKC and key stakeholders. These include:
Physical building stock
Predominantly due to the age of the housing stock, Perth and Kinross houses have a
higher percentage of hard-to-treat houses in every key criterion than the Scottish average,
as shown in Table 6. The proportion of buildings built pre-1919 is significantly higher than
national average with nearly all of these built using traditional construction methods with
solid brick and stone and designed to provide passive ventilation. They are classed as
“hard-to-treat” in retrofit terms as installing external or internal wall insulation for these
properties can often be more expensive and involve more invasive installation procedures. 
The majority of these pre-1919 buildings are also either listed or located in conservation
areas, or both, posing an additional challenge for retrofit interventions.
Table 6– Comparison of the Perth & Kinross vs Scottish Average Building Stock
Category Perth and Kinross  Scottish Average
Age - Pre-1919 Buildings 24% 18%
Tenure - Private rented accommodation 16% 13%
Size - Detached or semi-detached 55% 39%
Fuel – Off gas 36% 19%
Energy Efficiency – EPC bands D-G 58% 51%
Heritage – In conservation area 14% 10%
Fuel poverty 28% 24%

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LHEES Strategy 2024-2045  November 2023
Affordability and tenure
Perth and Kinross has lower levels of
social housing at (14%) than the Scottish
average. This is the sector that Perth &
Kinross Council has the most direct control
over. Private rented accommodation levels
are higher than the Scottish average.
While there are deadlines associated with
the property transition, it has been
observed that some landlords are preferring to sell their properties rather than upgrade
them or costs of upgrading are reflected in rent uplifts. 
Funding
The total investment required for homes and buildings to reach net zero by 2045 across
Scotland is in excess of £33 billion.  There is a lack of funding and support, at the right
scale, to support the upgrade of heat in buildings. There are existing schemes to support
social housing and fuel poor homes, as well as grants and interest-free loans accessible
to residents. Furthermore, the government’s emphasis on funding heat networks does not
lend itself well to a more rural area that has a relatively limited number of viable heat
networks. Additionally, whilst there is private investment available, it is often harder to
attract to more rural areas, especially given the economies of scale compared to city
regions.  In response to funding challenges, Scottish Government has established the
Green Heat Finance Taskforce to explore and identify innovative financing mechanisms to
help individuals and organisations make their properties warmer, greener and more
efficient. 
Public awareness and buy-in
Public awareness of what individuals and businesses can and need to do to make this
energy transition is still widely lacking. For those who want to take action; having a trusted
source of technical knowledge has been identified by many as a barrier to taking further
action.

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In Perth and Kinross, several organisations currently provide free home energy advice and
home visits, including SCARF, the HEAT Project, Warm Connection and the Citizens
Advice Bureau. At the current combined scale of operation over the next 10-years, these
organisations will only have the capacity to reach approximately 25% of homes requiring
retrofitting. 
Building public trust in new technologies will be important for adoption – both for heat
pumps and heat networks. Both are still new to Scotland and Perth and Kinross with
relatively low levels of consumer confidence. A key concern for consumers relates to being
‘locked in’ to a heat network with no option to go to the open market for a better price in
response. 
Skills and supply chain
Heat transition and energy efficiency bring a huge opportunity to create jobs and develop
new skills in the workforce. However, there is undoubtedly a gap at present between the
targets now set and the capacity of our supply chains and skills to deliver. This includes: 
• For a scaled-up deployment of heat pumps, the existing workforce will need to
develop (more) electrical skills to complement existing gas engineering or
plumbing skills. Evidence from consultations suggests that these skills are already
in great demand, with evidence of companies struggling to fill positions as a
result of short supply. 
• There is a need for growing capacity in the region’s education and training
system. This is not just for volume, but for effectiveness, responsiveness and
connectivity between education and training providers and businesses. 
• There is also evidence that there are not enough local businesses to supply the
goods or services to support heat transition and energy efficiency improvements. 
Lack of regulation and misalignment of national targets
While Scotland has leading climate targets and even with the Scottish Government’s Heat
in Building Bill which sets out its plans to regulate the domestic and non-domestic sector
decarbonisation, there remains limited influence the Council can exert to ensure the timely

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LHEES Strategy 2024-2045  November 2023
upgrade of buildings. This risks leaving the ambitions of Perth and Kinross potentially
constrained when opportunities are identified, as there are no regulatory enforcements,
other than for the social housing sector, that can be readily utilised. It is not until this
regulation comes into force that the transition in the private market will be able to take full
effect. 
Grid capacity
Decarbonising heat, focusing on heat networks and heat pumps, which run on electricity,
places significant pressures on the grid.  Heat pump uptake potential for Perth and
Kinross is high with approximately 49% of our buildings highly suitable for transition to
meet regulatory targets.  The grid is already constrained or near capacity at several
locations within Perth and Kinross.   Future changes in available capacity and wider
energy system decarbonisation must be considered when planning strategic widespread
deployment of heat pumps. 
The Council are working alongside SSEN and other partners in the Regional Energy
System Optimisation Planning (RESOP) project, 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.  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. 
Data availability
There are issues with the current data availability, access and sharing that impact on the
ability to target priority areas for action and require the use of proxy data.  These include:
• Non-domestic sector data
• Energy consumption and heat demand data, especially for large users
• Fuel poverty data

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LHEES Strategy 2024-2045  November 2023
• Funding eligibility data
• Data protection and commercial sensitivity 
8.2 Opportunities
The delivery of the Perth and Kinross LHEES also brings many opportunities. 
Use of natural assets, waste heat and new technologies
There is potential for several technologies using our natural assets which could be used to
provide heat sources for potential heat networks. These include:
• Water source heat pumps which could use heat from the River Tay and other
local bodies of water.
• Ground source heat pumps which could use heat at a maximum depth of 200
metres underground.
• Energy from waste which could use heat produced from burning waste.
• Geothermal which could use heat from 500 and 2,500 metres underground.
• Heat pumps and exchangers which could use heat from wastewater or the public
sewer.
• Other sources of waste heat.
Hydrogen
Hydrogen could be used on a large scale as a cleaner replacement for natural gas in the
gas grid, supplying individual boilers or heat networks. The UK Government will take
decisions on the role of hydrogen in the Great Britain gas network from 2026. 
Given the Scottish Government’s proposed hydrogen use hierarchy and the forecasted cost
and supply constraints, hydrogen is not currently considered as a significant heat source in
the Perth and Kinross LHEES, but the development of the sector and alignment with
developing policy will be tracked in liaison with Scottish Gas Network, one of our key
stakeholders. 
Green jobs and building a green economy
With over £900M in retrofit investment needed in the domestic sector alone in Perth and
Kinross over the next decade, there is significant potential to grow good green jobs.  In
addition to the direct skills required to deliver the transition (installation of heat pumps &

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LHEES Strategy 2024-2045  November 2023
insulation, etc.), there is also the potential for a secondary economy to develop, focused
on finding circular uses for the old assets (gas boilers, single glazed windows, etc). 
Financing
Heat networks typically have high up-front capital costs alongside a longer-term return on
investment. This causes challenges in business case development and at present, nearly
all schemes require government subsidies to make them deliverable. There is increased
private sector interest in heat networks, especially when at scale. In Perth and Kinross,
the development of large-scale district heating in Perth may be a key strategic heat
decarbonisation opportunity attractive to the market for private investment. However, this
may be more attractive when packaged with other energy projects. 
Public-Private Collaboration
There are opportunities for public-private collaboration. Partnerships could be developed
between Perth & Kinross Council and other public sector/social organisations such as
Registered Social Landlords (RSLs) or between public/social organisations and Distribution
Network Operators (DNOs) or indeed the wider private sector. One option progressed by
other areas in the UK is a Strategic Energy Partnership to bring private sector expertise
and to secure significant levels of capital investment required for the development of heat
networks and other energy-related projects. The projects taken forward by the energy
partnership could deliver on local priorities relating to carbon reduction, fuel poverty and
energy security with the aim of developing Smart Local Energy Systems. 
Co-benefits
There are several societal co-benefits associated with the delivery of the LHEES.  These
include:
• Reduction in fuel bills, associated with energy efficiency improvements and
potential heating source improvements (e.g., oil to heat pump)
• Warmer and healthier homes with improved indoor air quality
• Increased energy security, with local or renewable Scottish sources able to meet
a higher percentage of energy demand.

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LHEES Strategy 2024-2045  November 2023
The LHEES is an opportunity to bring in a whole energy system approach to maximise all
of these co-benefits. 
9. ENGAGEMENT AND CONSULTATION
This section details the engagement and consultation process which took place for the
development of the LHEES Strategy and Delivery Plan.
9.1 Engagement in strategy development
In line with Perth and Kinross Offer and with best practices in strategy development,
engagement with our communities and stakeholders has been the driver to design Perth
and Kinross LHEES and will be crucial for its successful delivery.
We have organised ourselves to design, agree and deliver an effective engagement plan
with the support of Arup, our external adviser.
Perth and Kinross Council Climate Change Board agreed the overall strategy development
scope and engagement plan with the Executive Director (Communities) as the Executive
Sponsor and Climate Change and Smart Investment Manager as the Senior Responsible
Officer. The approval of the P&K LHEES strategy and delivery plan sits with the Council’s
Climate Change and Sustainability Committee.
Reporting to the Board, a Project Team led the development and engagement process
with two project co-leads ensuring co-ordination and day-to-day management. A cross-
Council LHEES Working group ensured that information and experience was shared across
the Council with key individuals focusing on specific areas of work.
A stakeholder mapping was carried out to identify stakeholders. Based on the likely level
of interest and influence on the project, stakeholders have been categorised into four
groups: 
• TIER 1 – Ongoing engagement throughout the project at defined workshops e.g.
identifying priorities and for delivery. Specific engagement plans developed as
required.

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LHEES Strategy 2024-2045  November 2023
• TIER 2 – Participate in workshops and engage with the project at key milestones (if
required). Potentially one-to-one contact during data collection stage and one-to-one
interviews to be held with these stakeholders to gain further insight and
understanding of priorities and delivery contributions. 
• TIER 3 and 4 – Potentially participate in workshops and engage with the project at
key milestones (ad hoc basis). Receive a direct invite to public consultation. 
TIER   stakeholders were invited to form a LHEES Steering Group with Council’s
representatives and a first meeting of LHEES Steering Group took place on 30th March
2023. The Steering Group’s role, remit and membership is set out in in Appendix B to this
Strategy.
The engagement plan was structured around a series of Steering Group workshops and
one-to-one interviews. Workshops’ invitations and interviews were extended to other
stakeholders’ groups when relevant to the topic.
• Workshop 1 (March 2023): Objective setting - Knowledge building and awareness
raising for key stakeholders; establishment of ongoing engagement opportunities and
activities to support LHEES.
• Workshop 2 (May 2023): Baseline feedback and Strategic Options and Priorities -
Scenarios to be developed for optimisation modelling and to support finalising focus
for the LHEES Strategy.
• Workshop 3 (June 2023): Heat Network Zones – identification of Heat Network
Zones and discussion.
• Workshop 4 (July 2023): Online modelling feedback - Prioritised decarbonisation
pathway that will be used to inform the LHEES Strategy and Delivery Plan.
• Workshop 5 (October 2023): Draft Strategy and delivery plan - Present the draft
Strategy and Delivery Plan for discussion and feedback.
In addition to the formal LHEES engagement, the Strategy development is based on wider
stakeholder and community engagement by PKC and our partners.  These include:
• PKC’s Local Housing Strategy inputs and consultation (2022);

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LHEES Strategy 2024-2045  November 2023
• Big Place Conversations held across Perth & Kinross in Spring/Summer 2023;
• Net Zero Living – Pathfinder Places public engagement in Aberfeldy, Tulloch and
Blairgowrie (Spring 2023).
9.2 Outputs of community consultation
Following consultation with partners and stakeholders, a draft LHEES vision with priorities
for action was developed. Before the final strategy was developed, we wanted to make
sure that local people, communities and stakeholders have their say on whether these
priorities will make a positive difference to meeting their needs.
The views of residents, the local community and stakeholders are crucial in ensuring that
the first LHEES truly reflects the issues faced by local people and includes the correct
priorities and actions to address these issues. In developing the LHEES, we have
consulted with local stakeholders from an early stage and want to continue that process
with residents and the local community to make sure we get it right.
We issued a consultation document with evidence reports on 3 October 2023 with a
response deadline on 29 October 2023. Details of the consultation document and related
reports could be accessed at Perth and Kinross Local Heat & Energy Efficiency Strategy
2024-2045 Consultation - Perth & Kinross Council Citizen Space - Citizen Space
(pkc.gov.uk).
The Consultation document asked a number of questions and although the number of
responses was low, it provided a qualitative insight into public perception of LHEES. A
summary is provided below: 
- Vision and outcomes: agreement and good positive support. Presented clearly-
However, generally, quite complex and technical area with jargon.
- Targets: alignment to Scottish targets was supported. However, doubts about the
availability of finance to achieve them as well as the need to change behaviours.
- Challenges: agreement with identified challenges. Historic and listed buildings would
need more considerations.
- Opportunities: agreement with identified opportunities. Use of hydrogen was raised as
difficult and not certain. More emphasis on social value opportunities as co-benefits.

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LHEES Strategy 2024-2045  November 2023
Expected future decoupling of gas and electricity prices could be highlighted. Heat as
by-product to support heat network could be highlighted.
- Strategic priorities: Strategic priorities may need to be prioritized with improving the
fabric of buildings first before changes to the heating system.
- Strategic actions: heat network zones focus should put more emphasis on the scope
to use District Heating systems in rural towns, especially where there is active and
motivated community involvement and therefore not use the model too rigidly.
Emphasis on heat pumps is questioned in relation to installation and operating costs
and this should be reflected in the delivery timescale and considering phased heat
supply (lowering temperature in line with energy efficiency progress). Funding capacity
of private owners was also highlighted as a challenge particularly when gas prices
are cheaper than electricity. More generally, actions are comprehensive. It was
suggesting adding an action to complete a detailed risk review and maintain the
resultant risk matrix/register for each action with early engagement with private sector
partners through this process to sense check and advise on actions and their
progress/outcomes. 
- Delivery Plan: early engagement with potential private sector partners would be
beneficial and lead to quicker resolutions. The selection of criteria was supported. It
was suggested to add information on the compatibility with target timelines for each
of these.
- Supporting mechanisms: the whole energy system approach was supported. Skills
supply and demand and local supply chain were highlighted as important with
attraction of new people to the industry, upskilling and keep it local. Supporting
Community to take advantage of heat transition was also highlighted as important by
informing better, providing financial support, but also building on existing practices.
Mobilising public and private investment was supported including exploring strategic
energy partnership as this could simplify procurement, ensure commitment from
partner/s, and is likely to lead to wider positive impacts. However, there is a need to
ensure it does not prevent other investment in the area. Early involvement of private
sector delivery partners, to prevent challenges and delays in procurement and
delivery. In particular, early confirmation and clarity on a) the role that the Council
wishes to play in the long term energy solution (and heat network) development and
deployment and b) the method by which it will procure development, investment,
delivery and operational services for the energy system and c) the model which it will
establish for how it will work with industry in the supply of services, for example
Memorandum of Understanding, joint venture or concession model. This will be

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LHEES Strategy 2024-2045  November 2023
important to provide investors with signals on scale of opportunity and likely
commercial arrangements underpinning heat networks deployment. 
The outputs from the consultation have been used in finalising the LHEES Strategy and
Delivery Plan. 
9.3 Impact Assessments
Perth and Kinross Council has considered the following impact assessments in developing
the LHEES.
Table 7 PKC LHEES Impact Assessment
Impact Assessment Status Comments
Strategic
Environmental
Assessment
Screened out at
the Screening
Stage
To view the Screening Report and
Determination, please visit:
https://www.pkc.gov.uk/article/23543/Strategic-
Environmental-Assessment
Data Protection
Impact Assessment
Required -
Completed
Equality and
Fairness Impact
Assessment
Required - On-
going
Consultation with Perth & Kinross Equalities
groups on-going as part of wider public
engagement.
Potential for significant positive impact.
Business and
Regulatory Impact
Assessment 
Scoped out Following internal screening this Strategy
was deemed not applicable

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LHEES Strategy 2024-2045  November 2023
10. STRATEGIC PRIORITIES
10.1 LHEES Priorities 
To achieve this vision and outcomes, two strategic priorities form the basis of the Strategy
and Delivery Plan: 
There are not ranked in order of priorities and a fabric first approach should always be
used. These were developed through an evidence-based approach drawing on national
and local strategies; engagement with key stakeholders; and an analysis of the buildings in
Perth and Kinross. 
The delivery of these two strategic priorities will be supported through prioritisation of
actions, a whole energy system approach and key supporting delivery mechanisms.
To support the successful delivery of our Strategic vision and priorities, a number of ideas
for action have been identified, assessed and prioritised by the Council with key
stakeholders. 
Perth and Kinross-wide mapping of heat decarbonisation opportunities, alongside whole
energy system considerations, was completed to identify where interventions are most
suitable and where challenges exist. The analysis supports the development of a long
term, strategic investment framework through prioritisation of our strategic zones, including
heat network zones and more granular delivery priorities - targeting areas for projects,
programmes, engagement and providing a focus for delivery of a pipeline of projects over
the short to medium term. 
Priority 1 
Decarbonising heat within a transitioning energy system focusing on heat
networks and heat pumps.
Priority 2 
Improving buildings’ energy efficiency aiming for affordable warmth and
regulatory compliance.

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10.2 Strategic Zoning 
Strategic zones were generated to assess our strategic priorities - decarbonised heat
within a transitioning energy system (potential heat network zones and heat pump
suitability) and improving buildings energy efficiency, to meet regulatory targets and
address fuel poverty delivering affordable warmth. 
A range of evidence was used to prioritise strategic zones and actions including:
• the domestic baseline and non-domestic baseline for our building stock
• Portfolio Energy Analysis Tool (PEAT) retrofit scenarios to ensure that buildings
are retrofitted to comply with policy set out in the regulatory standards outlined in
the Heat in Buildings and Energy Efficiency Standards for Social Housing post-
2020 (EESSH2)
• Non-domestic retrofit analysis modelling energy efficiency measures influenced by
the building typology to assess possible energy savings. 
• Scottish and Southern Electricity Networks (SSEN) infrastructure and capacities
including Primary substations (33kV/11kV) and the Electricity Supply Areas (ESAs)
that they serve as an indicator of substation capacity.
Strategic Zones for our identified priorities aim to spatially set out areas of focus to
decarbonise the building stock, with a focus on understanding the current performance of
buildings, and an analysis of cost-effective opportunities for significant energy and
emissions reductions. Strategic Zoning evaluates various aspects of energy efficiency and
heat decarbonisation in Perth and Kinross.
The aim of Strategic Zoning is to understand the opportunities and potential challenges
associated with heat decarbonisation and energy efficiency improvements, at a strategic
data zone level (e.g., 500-1000 residents) for inclusion in the LHEES.
The analysis and visualisation were undertaken using mapping which integrates multiple
variables affecting heat decarbonisation, energy efficiency and deliverability to identify
specific challenges and opportunities in delivering interventions.  This approach represents
a significant advancement beyond the LHEES methodology and facilitates a deeper

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LHEES Strategy 2024-2045  November 2023
understanding of opportunities and challenges, as well as actions that could form the basis
of delivery planning for the Council. 
10.3 Strategic vs Delivery zoning for priorities
The LHEES methodology requires development of strategic priorities and zones which set
out how a local authority proposes to meet longer term national and local objectives and
prioritise areas to meet these targets.  This is supported by complementary, more granular
delivery priorities and areas pinpointing targeted intervention and early, low-regrets
measures in the near to medium term (5-year focus). This process is illustrated in the
diagram below and delivery plan priorities are described further in section 11.

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10.4 Strategic Priority 1a: “Delivering decarbonised heat within a
transitioning energy system – Heat Network Zones”
Regulatory targets for heat decarbonisation are:
• By 2030, emissions from buildings have to be 68% lower than 2020 levels 
• By 2032, 70% of heat for non-domestic buildings will be using low carbon
technologies
Approach for Identifying Potential Heat Network Zones
Heat Networks (Scotland) Act 2021 places a duty on local authorities to carry out a review
of potential areas for heat networks.  The formal designation of heat network zones will
use outputs from LHEES as a starting point for more detailed work on consideration and
formal designation of heat network zones.  Secondary legislation and guidance are being
phased-in between May 2023 and 2025 and will include the formal designation of potential
heat network zones.
The approach to identifying potential zones builds upon the national heat network
assessment methodology. Potential zones have been preliminarily screened by key
stakeholders to identify any known issues or barriers which limit taking the zone forward
for further investigation.
What is a Heat Network? Heat networks (also known as district heating) supply heat
from a central source to consumers, via a network of underground pipes carrying hot
water. Heat networks can cover a large area or even an entire city or be fairly local
supplying a small cluster of buildings.
What are Potential Heat network zones?  Potential Heat network zones are areas
particularly suitable for heat network development. The purpose of the zones is to
attract investment from heat network developers.

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LHEES Strategy 2024-2045  November 2023 
The LHEES methodology uses two sets of criteria to identify potential heat network zones
(Table 6). Stringent zones have a higher level of heat demand and greatest potential
financial viability, while Baseline Zones are still expected to be viable, but less so than
Stringent Zones. 
Table 6: Thresholds criteria used for Potential Zone identification and prioritisation
Linear heat density
benchmark
(kWh/yr./m) 
Anchor load threshold
(MWh/yr) 
Minimum number of
anchor loads per
cluster 
Baseline   4,000  500  2 
Stringent  8,000  500  5 
Potential Heat Network Zones
Due to the rural nature of Perth and Kinross, the potential for heat networks in the local
authority area is limited to a few urban areas and towns. Two zones were identified using
Stringent criteria – one in the Perth City Centre and one in the Inveralmond Industrial
Estate (Perth). These zones have higher heat demand density with a larger number of
anchor loads, making them more likely to be financially viable.  Five further zones were
identified using Baseline criteria, indicating financial viability in these locations may be
limited.  The identified zones include:
• Perth City Centre (Stringent and Baseline)
• Perth Inveralmond Industrial Estate (Stringent and Baseline)
• Perth College/UHI (Baseline only)
• Perth Academy (Baseline only)
What is a Linear Heat Density? “Linear heat density is an industry standard metric that
relates heat to distance, for a heat network it is heat demand per meter of pipe.” 
What is an Anchor Load? “Anchor loads are high heat demand buildings and key
connections on a heat network that usually drive the economics of heat networks.”
LHEES methodology: Heat Networks – Generation of Potential Zones Detailed Practitioner Approach

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LHEES Strategy 2024-2045  November 2023
• Auchterarder (Baseline only)
• Kinross (Baseline only)
• Blairgowrie (Baseline only)
A full summary of potential heat network zones can be viewed here and via a web map
available to explore the full range of heat network opportunities available in further detail.
The seven potential zones are shown indicatively in Figure 7 to Figure 10.  Currently the
extent of the zones is indicative based on the criteria and approach outlined above. The
Council will work towards improving demand confidence, clarifying supply options, and
engaging with potential anchor load connections to support formal designation and refine
zone boundaries. Potential zones will be further verified and reviewed in terms of suitability
as part of the Heat Network Designation work to be undertaken in 2024/25.
Challenges exist for the financial viability of heat networks. Improved regulation, evidence,
funding and policies at both a local and national level are required to maximise the
incentive to invest in heat networks.  The cost of heat compared to conventional fuels like
gas is a key driver of this, but heat networks must also be shown as the most cost-
effective decarbonisation option for buildings within Potential Heat Network Zones.

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LHEES Strategy 2024-2045  November 2023
Figure 7 Indicative Heat Network Zones Perth

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LHEES Strategy 2024-2045  November 2023
Figure 8 Indicative Blairgowrie Heat Network Zone

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LHEES Strategy 2024-2045  November 2023
Figure 9 Indicative Kinross Heat Network Zone

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LHEES Strategy 2024-2045  November 2023
Figure 10 Indicative Auchterarder Heat Network Zone

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LHEES Strategy 2024-2045  November 2023
Perth City Centre Heat Network
Perth’s heat demand using the Scotland Heat Map, indicated a total heat demand of 0.5
TWh/yr. For comparison, the City of Edinburgh has a total heat demand of 5.4 TWh/yr.
Much of Perth’s heat demand is concentrated in smaller areas of the city, providing areas
of high density of heat that present a significant opportunity for the deployment of a large-
scale district heating system over time. The most significant opportunity for heat networks
lies in Perth, where a feasibility study for a Perth City Centre heat network has recently
been completed. It was proposed that this network could be supplied by a closed loop
ground source heat pump located to supply heat to 15 core sites. Additional buildings to
the south and west of the proposed route (e.g., Dewars Centre, Perth Leisure Centre and
social housing) were identified as potential future connections. Other heat sources such as
geothermal or the River Tay could also be explored.
The development of a commercial delivery model or strategic energy partnership for the
city centre provides an opportunity to inform how this, and other low carbon opportunities,
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. Additionally, an
energy partnership may help to unlock delivery of the wider LHEES and LAEP outcomes.
Blairgowrie, Kinross and Auchterarder Potential Heat Networks
Blairgowrie: A Baseline Zone has been identified in Blairgowrie anchored by loads at the
Blairgowrie Community Hospital, Blairgowrie High School and Live Active Blairgowrie.  
Proctor Production Facilities and Blairgowrie Community Campus are located to the north
and south of the zone respectively.  The zone is adjacent to a development site identified
for mixed-use development.
Kinross: A Baseline Zone has been identified in Kinross anchored by loads at the Live
Active Loch Leven Leisure Centre, Kinross High School, Loch Leven Community Campus
and Loch Leven Health Centre.  
Auchterarder: A Baseline Zone has been identified in Auchterarder anchored by loads at
the Auchterarder Community School and Parkdale Care Home (Council owned). The zone
also includes Auchterarder Library and Aytoun Hall. There is a moderate proportion of
social housing (33%) and fuel poverty probability (28%) in the zone.

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LHEES Strategy 2024-2045  November 2023
Ground source heat pumps have been identified as the likely heat source for all three
zones.  
10.5 Strategic Priority 1b: “Delivering decarbonised heat within a
transitioning energy system - Heat Pumps” 
For the majority of Perth and Kinross properties that fall outside of potential heat network
zones, heat pumps will be the recommended low carbon heating source. However, we
understand that this would be challenging in terms of costs and public perception and will
therefore will need to manage carefully and where and when it makes sense. 
On-gas and off-gas grid properties have been grouped into four categories depending on
their heat pump suitability as shown in Table 8. It shows that over 28,500 properties in
Perth and Kinross are potentially highly suitable for a heat pump. At 2023 energy prices,
the potential for energy cost savings by switching to heat pumps for well insulated off-gas
households is significantly more than for on-gas households.
Table 8 Heat Pump Suitability Classification
Heat Pump Suitability Category  On-gas properties in
Perth and Kinross
Off-gas properties in
Perth and Kinross
Category 0 - Already have a low or zero
emission heating system.
1%
(314)
5%
(1,472)
Category 1 Considered highly suitable for a
heat pump installation (i.e., well insulated
property with a wet system).
49%
(23,938)
18%
(4,851)
What is a Heat Pump? A heat pump captures heat from outside – either from the air or
ground - and moves it into your home.  The heat pump uses electricity to do this, but the
heat energy delivered to your home is much more than the electrical energy used to
power the system. In well-insulated homes, heat pumps can be comparable in operating
costs to gas and lower than oil. As they produce heat at lower temperatures than gas or
oil-fired systems, their relative cost increases for poorly insulated homes.

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LHEES Strategy 2024-2045  November 2023
Category 2 - Require moderate fabric
upgrades and/ or the addition of a wet
system
18%
(8,836)
34%
(9,522)
Category 3 – Either requires significant
fabric upgrades) or more suited to other
low or zero emission heating system (i.e.,
biomass, direct electric or electric storage).
32%
(15,559)
43%
(11,904)
Off-gas social housing energy efficiency Category 1 suitable for heat pump
By prioritizing heat pump deployment in social housing properties that are off-gas,
especially those heated by inefficient, carbon intensive systems such as LPG and oil boiler
there is potential for significant fuel poverty and carbon reduction. 
Dunkeld, Crieff, Blairgowrie and Rattray, and Glenfarg emerge as priority regions for heat
pump deployment in social housing properties not connected to the gas network. These
areas host a substantial number of social housing properties that are readily suitable for
heat pump retrofitting and display high substation demand headroom2. In addition, areas
around Crieff, Blairgowrie and Rattray and Perth have a higher number of social housing
properties connected to the gas networks, which are also suitable for heat pump
deployment. 
Off-gas private homes suitable for heat pump retrofit
Crieff, Dunkeld, Blairgowrie and Rattray, Glenfarg, Powmill have significant potential for
heat pump deployment in privately owned properties that are off-gas. Crieff, Perth and
Blairgowrie and Rattray have higher suitability for heat pump installation amongst on-gas,
privately owned properties. However, retrofitting these properties can prove to be
challenging as the responsibility of installing the heat pump falls on the property owner.
Kinross and Milnathort, and Coupar Angus have high concentrations of properties that are
heat pump ready however have limited spare grid capacity posing a risk to deployment. 
2 Demand headroom is the gap between the rating of the electricity network to supply electrical demand and
the actual demand in that part of the network.

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LHEES Strategy 2024-2045  November 2023
The Council will continue to work with SSEN to align investment planning in these areas.
Work being completed for the associated LAEP will undertake modelling to explore the
impact of low-carbon technology roll out on the area’s whole energy system in different
demand scenarios.
Social housing that requires energy efficiency improvements to enable suitability for
heat pumps
The areas of Dunkeld, Crieff, Blairgowrie and Rattray, Perth, Bridge of Earn and,
Glenfarg, have been identified as having both spare network capacity and a high
concentration of social housing with secondary potential for heat pumps - requiring
moderate fabric upgrades and/or the addition of a wet heating system to be heat pump
ready (i.e., Category 2). The same areas are suitable for retrofit for heat pumps on-gas
apart from Dunkeld. Privately owned properties with secondary potential for heat pump
retrofit and spare grid capacity are located in these same areas, however actioning retrofit
in this sector is made more challenging as the responsibility lies with owner-occupiers and
landlords.
A full summary of potential heat pump and secondary heat pump deployment areas can
be viewed here and is supported by web mapping here to explore the full range of
opportunities available in further detail.
10.6 Strategic Priority 2a: “Improving buildings’ energy efficiency to
meet regulatory standards”
Regulatory targets for Energy Efficiency are:
• By 2026 All Social Housing EPC D and EPC B by 2032
• By 2028 Private Rented Sector EPC C
• By 2033, all homes have the equivalent of EPC C. 
All domestic properties in Perth and Kinross were modelled using the regulatory scenario
produced by the Energy Savings Trust in their PEAT model, alongside specific tools
developed for LHEES. Figure 11 outlines the current status and post-retrofit status of
properties according to the PEAT model.  It demonstrates that there are many hard-to-treat
properties, that even after implementing the full suite of standard retrofitting measures,
would still not comply with regulatory requirements.

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LHEES Strategy 2024-2045  November 2023
Figure 11 Predicted regulatory compliance pre- and post-retrofitting status of domestic properties in Perth & Kinross 
Areas with concentrations of social housing having poorer energy efficiency in Crieff and
Pitlochry, could be strategically targeted for cost effective “quick wins” to meet regulatory
targets for 2026 and 2033, as the total cost of interventions to meet regulatory standards
is low. 
Challenges for the private sector are present across the area, where many privately owned
properties have high intervention costs to meet EPC C targets, which may not be
perceived as an attractive investment for property owners. 
Areas where substantial energy and CO2 emissions savings can be achieved at the lowest
cost are limited and concentrated in Bridge of Earn and Abernethy, North Muirton and
Old Scone, Guildtown, Balbeggie and St Madoes, Errol and Inchture, and Coupar
Angus and Meigle
These areas represent immediate opportunities for cost-effective interventions and could
also be used to plan works to take advantage of economies of scale, by strategically
retrofitting nearby buildings simultaneously including privately owned homes, and in
alignment with the Council decarbonisation assessment. This coordinated approach may
lead to cost efficiencies and drive down the overall expenses associated with energy
efficiency upgrades. 
0
5 000
10 000
15 000
20 000
25 000
0 000
5 000
Housing Association Local Authority wner  ccupied Privately Rented
urrently meets regulatory standards Does not currently meet regulatory standards
eets regulatory standard post retro t Doesn t meet regulatory standard post retro t

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LHEES Strategy 2024-2045  November 2023 
Non-domestic buildings that require retrofit to meet regulatory targets
Non-domestic buildings in areas across Glenavon and Glendevon have been identified as
high potential for heat demand savings in non-domestic buildings with lower cost retrofit
interventions.  There are several hotels around these areas, which present opportunities for
cost-effective retrofitting. However, retrofitting hotels will present certain challenges to
owners, primarily due to restrictions imposed by the building's age and the need to
preserve the architectural integrity. 
Private ownership limits the Council's authority over decarbonisation plans and strategies
beyond legislation. Engaging with the private sector around their existing decarbonisation
plans can facilitate collaboration between the public and private sectors and align low
carbon planning. Additionally, the Council can play a role in promoting awareness of
funding incentives available for small and medium-sized enterprises (SMEs). For instance,
through the Resource Efficient SME Loan, SMEs can access an interest-free loan of up to
£100,000, specifically designed to support energy efficiency improvements. 
Continued engagement with the private sector, supported by the Council, would help to
identify barriers associated with building retrofit and help to provide tailored solutions aimed
at addressing the specific challenges faced by non-domestic building owners. 
10.7 Strategic Priority 2b: “Improving buildings’ energy efficiency
aiming for affordable warmth”
To assess at a strategic level where poor energy efficiency is believed to be driving fuel
poverty (i.e., where there is a greater impact of poor energy efficiency on fuel poverty) an
approach was followed that considers three different building fabric criteria - low loft
insulation, uninsulated walls, and single glazed windows as indicators of poor energy
efficiency, alongside fuel poverty with specific weightings.
Energy efficiency, which acts as a driver of fuel poverty, is highest in areas around
Pitlochry, Aberfeldy, Crieff, Dunkeld, Perth and Blairgowrie & Rattray emphasising the
need for intervention to address fuel poverty in these regions.

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LHEES Strategy 2024-2045  November 2023
When comparing areas with high energy efficiency driven fuel poverty with properties
requiring lower cost retrofit options, the areas of Pitlochry, Comrie, Gilmerton and St
Fillans, Blair Atholl, Strathardle and Glenshee, and areas of Perth showed the greatest
opportunity. 
Targeting these areas though tailored awareness campaigns about available funding to
support fuel-poor households, such as the Energy Company Obligation (ECO4), which
provides grants for energy efficiency upgrades funded by the applicant’s energy supplier, is
critical. By disseminating information about these financial support options, the Council can
encourage greater participation in retrofitting initiatives. Furthermore, recognising the unique
needs of vulnerable individuals, the Council should continue to provide support services
and guidance to households that require assistance with the application process through
organisations such as the HEAT Project and Scarf and provide information to Elected
Members to disseminate. This approach ensures that those who may face challenges in
navigating the application process receive the necessary help to access available funding.
Social housing properties in Crieff, Pitlochry and Blairgowrie and Rattray are likely to
experience a greater reduction in fuel poor households due to the implementation of low-
cost retrofit interventions. Local authority owned properties in these areas offer “quick win”
opportunities for the Council, as they provide substantial impact in terms of reducing fuel
poverty, while requiring relatively lower financial investment compared to other locations.  
Retrofitting social housing properties presents several challenges, primarily due to the
occupancy of fuel-poor, vulnerable tenants. Access to the property can be limited as
tenants might face difficulties in vacating their homes, and tenants may be resistant to
changes to their home. To address these complexities, a person-centred retrofit approach
should be implemented during the early planning stages.
Collaborating with local financial institutions, building societies, and mortgage providers can
open possibilities for funding solutions aimed at making retrofitting more accessible to
homeowners. One promising solution to consider is Property Linked Finance, which has
the potential to cover up to 100% of intervention costs. The uniqueness of this financing
option lies in its linkage to the property rather than the individual owner, which can offer a
more inclusive financing opportunity for homeowners interested in retrofitting their homes.

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LHEES Strategy 2024-2045  November 2023
11. DELIVERY PLAN
Accompanying our Strategy is our Delivery Plan. This has been developed in partnership
with key stakeholders and provides a strong basis for action for local communities,
government, investors, developers and wider stakeholders, pinpointing areas for targeted
intervention and early, low-regrets measures in the near to medium term. Due to the
dynamic nature of this plan, and rapidly evolving regulatory, funding and policy landscapes,
it is intended to be kept as a live document and published by February 2024 as a live
plan in a digital planning platform being developed through Project RESOP (Regional
Energy System Optimisation Planning) by Scottish and Southern Electricity Networks
(SSE ) under  fgem’s  etwork Innovation Allowance.
11.1 Delivery Plan Priorities
The LHEES Guidance outlines that the LHEES scope should be framed around the
‘LHEES Considerations’, outlined earlier in this document. LHEES priorities are also
shaped by the local context and as such the delivery of the LHEES will be supported
through targeting areas and related actions linked to our local strategic priorities, supported
by key delivery mechanisms and embedded in a whole energy system approach. 
For each LHEES consideration, strategic priorities and areas have been identified to target
both national and local objectives longer term.  At a more granular level, delivery priorities
and areas have been identified to define potential decarbonisation pathways and pinpoint
areas for near term, low-regret actions to support LHEES delivery.   Delivery areas are at
a higher granularity than strategic areas (i.e., data zones) and set out clusters of buildings,
such as postcodes, where potential solution(s) can be targeted to meet our strategic vision
and priorities.  
The LHEES Delivery Plan will focus on these areas to take forward actions in the near
term that are within the remit of the Scottish Government, local authorities and wider
partners to deliver. Proposed Delivery Plan priorities for the Perth and Kinross’ first LHEES
are centred around the Council and our partners local strategic priorities identified through
a series of workshops and engagement sessions as illustrated in Table 9.

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LHEES Strategy 2024-2045  November 2023 
Table 9 LHEES Strategic and Delivery Plan Priorities
NATIONAL LHEES
CONSIDERATIONS
PERTH AND KINROSS STRATEGIC
PRIORITIES  
PROPOSED PERTH AND KINROSS DELIVERY PRIORITIES
Heat networks 1.  Delivering decarbonised heat within a
transitioning energy system 
1. Potential heat network zones
Off-gas heat
decarbonisation
1.  Delivering decarbonised heat within a
transitioning energy system 
2. Off-gas social housing suitable for heat pump retrofit  
3. Off-gas private homes suitable for heat pump retrofit 
Off-gas and on-gas
heat decarbonisation
1.  Delivering decarbonised heat within a
transitioning energy system 
4. Social housing that requires energy efficiency improvements to
enable suitability for heat pump  
Energy efficiency
and energy
efficiency as a
driver of fuel
poverty 
2. Improving buildings’ energy efficiency to
meet regulatory standards 
5. Social housing that does not meet regulations (e.g., below EPC
B) identified for energy efficiency retrofit 
6. Owner occupied properties that do not meet targets (e.g., below
EPC C)  
7. Owner-occupied properties that do not meet targets (e.g., below
EPC C) AND potential suitability for HEEPS:ABS funding 
8. Owner-occupied properties below EPC Band E

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LHEES Strategy 2024-2045  November 2023
Delivery Plan priorities are the starting point for identifying projects and actions to include
in the Delivery Plan. Each Delivery Plan priority may result in several delivery areas (e.g.,
clusters of buildings at neighbourhood or postcode level) for targeted interventions. 
Potential actions range from prioritising retrofit of our Council assets, wider social housing
joint working to support heat pump roll out, and engagement and awareness raising with
communities and the private sector as detailed below.
11.2 Delivery Plan Area Criteria
Our delivery priorities are shaped by our strategic priorities and associated stakeholder
priorities.  The LHEES evidence base, including consideration of grid capacity, has been
analysed to target properties which match these priorities.   
The key criteria used to develop delivery plan areas are as follows:
• Meeting regulatory targets – change in EPC, Energy savings (kWh), CO2
reduction (tCO2e)
• Fuel Poverty – fuel poverty change (%), Energy bill change
• Deliverable, technically feasible and evidence based – grid capacity, cost of
intervention, type of wall insulation, etc.
• Potential funding availability (e.g., HEEPS-ABS eligible properties)
• Interventions that are already beneficial and no/low-regret (off-gas heat pumps,
heat networks)
• Ability to influence.
The diagram in Figure 12 sets out an example of how the criteria will be used to identify
Delivery Plan areas.

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LHEES Strategy 2024-2045  November 2023
Figure 12 Example of how delivery plan area criteria will be applied to identify delivery plan focus areas 
11.3 LHEES/LAEP Live Delivery Plan
The Scottish Government recognises that LHEES will evolve with the introduction of future
standards and regulation, as well as the introduction of new delivery and funding
programmes. This first LHEES is largely focussed on delivery within the scope of the
current and near future funding, regulatory and policy landscape. For example, supporting
the delivery of existing funding (e.g., HEEPS ABS, ECO4); while providing a pathway to
meeting medium to long-term targets and objectives.
The LHEES Delivery Plan is intended to provide a high-level evidence base and a live
tool for Perth & Kinross Council and partners to identify interventions across a range of
technical solutions and funding streams.
Live Delivery Plans will be further informed and be informed by our Local Area Energy
Plan (LAEP) providing a single, integrated process to consider the whole energy system
alongside heat decarbonisation. The LAEP will develop a model to test a range of build-
out rates from 2023 to deliver the future system through various target years (e.g., 2030,
2033 or 2045, or any year in-between).
The LAEP deployment model will incorporate outputs of the policies and strategies review,
building level demand pathways, heat network zoning and include an assessment of the

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alignment with key relevant targets and milestones across heat, transport and supply and
transmission. Multiple scenarios for the future energy system demand, generation,
distribution and storage, will help us mitigate risk by testing the potential limits of the
uncertain aspects of the energy system.  The Council area will be split into zones based
on primary substation locations. Data on both demand and supply for different parts of the
energy system will be aggregated for each zone and modelling will optimise the energy
mix for each of these zones.
11.4 Key supporting delivery mechanisms
To deliver the LHEES priorities, key supporting mechanisms and programmes have been
identified as follows:
Taking a Whole Energy Systems Approach 
Through the development of the LAEP and a collection of complementary initiatives, the
Council is taking a whole systems energy approach to the development and
implementation of the LHEES from generation through to demand. 
Key on-going areas of work to support this approach include:
• Project RESOP (Regional Energy System Optimisation Planning) – RESOP is a
public/private collaboration led by SSEN that takes a ‘whole system’ approach, by
drawing together data on building suitability for heat decarbonisation (heat pumps
and heat networks), building fabric retrofit and wider energy system demand (e.g.
Electric Vehicles) and generation considerations into a single tool (LAEP+) that
can be used to plan retrofit and roll out of low carbon technologies and will
facilitate collaboration between network operators, local authorities and other
energy transition stakeholders to achieve our strategic priorities and outcomes.  
• Council Estate Decarbonisation Planning - The Council is currently undertaking
work to design and deliver a major programme of retrofitting both for its domestic
and non-domestic building stock, focusing on how decarbonising projects should
be prioritised. The work will consider detailed programming, risk analysis, supply
chain capacity and the Council’s operating model, to identify how the Council
could progress and where critical gaps exist (such as in the local retrofit supply

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chain) that the Council can start to influence in preparation for major retrofit
projects.
• Smart Local Energy Systems (SLES) - The Council has developed a toolkit that
will allow us to filter projects and develop business cases to triage delivery
actions and areas into a pipeline of investable energy projects based on a range
of priorities. This will lead to the development of an investment programme
enabling Smart Local Energy Systems.
Figure 13 Whole energy systems approach 
Developing green skills and the capacity of the supply chain
There are now numerous studies and policy documents that point to the opportunity for
green jobs in the future.  In Scotland the National Strategy for Economic Transformation
published in March 2022 set out a number of Actions including:
• working collaboratively with employers and unions to increase investment in
upskilling and retraining to better meet the needs of employers and employees in
Scotland’s transition to net zero
• supporting and incentivising employees, and their employers, to invest in skills and
training throughout their working lives
• expanding Scotland’s available talent pool, at all skills levels, to give employers the
skills pipeline they need to take advantage of opportunities
• implementing the Climate Emergency Skills Action Plan to align Scotland’s skills
system with business needs to reach net zero

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• implementing the next phase of the Green Jobs Workforce Academy and launching
a new skills guarantee for workers in carbon intensive industries
• developing proposals for a national digital academy to open up access to a range
of subjects for all learners
The priority in decarbonising Scotland’s domestic heat by retrofitting homes and improving
energy efficiency will dramatically reduce consumption and hence bills, regardless of the
ultimate source of heat. Thanks to boiler or heat pump efficiency improvements, any of the
options will deliver significantly cheaper heat for households than older inefficient boilers or
electric radiators.
The STUC report on Green Jobs in Scotland estimated - with the right policies and
funding in place - Scotland could see job creation in the region of 156,000 - 367,000 jobs.
Perth & Kinross is identified as one of the geographical hubs for energy development and
may be well placed for energy related jobs because of the presence of SSE (see picture
be below). 
The shift away from fossil fuels for electricity and heating means that there will be
increasing demand for more electricians, electrical engineers. Employers point towards
specific skills and understanding in fields such as insulation, Passivhaus standards,
maintenance of low carbon tech (including district heating, EV charge points, heat pumps,
solar DC systems, etc.)

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Already there are large-scale programmes of retrofitting, with domestic gas boilers being
replaced with air- or ground-source heat pumps.  From 2025, gas and oil boilers will not
be permitted in newbuild homes.  The H100 Fife project3 is a demonstrator project
providing green hydrogen through a new gas network to around 300 households in
Buckhaven and Dunbeath.
This means that the incumbent workforce will require to develop (more) electrical skills to
complement existing gas engineering or plumbing skills.  This will not only be for the
installation of low carbon heating systems, but the replacement of electricity distribution
boards in domestic and commercial properties where such heating systems are retrofitted. 
However, evidence from consultations suggests that these skills are already in great
demand, with evidence of companies struggling to fill positions as a result of short supply.
Nevertheless, there remains a significant challenge in fully understanding skills demand
across region, by sector and for Clean Growth as a whole. Business engagement is a
critical factor here. There is limited intelligence, poor channels of communication on need
where there is engagement, and no smooth engagement with businesses.  This serves to
constrain education and training providers’ ability to respond to business skills need
effectively.  There is a clear requirement to engage with businesses to drive participation in
and contribute to the discourse on green jobs, and to stimulate meaningful conversations
around skills need in this area.  This is particularly important in light of some of the
findings of the recently published Independent Review of the Skills Delivery Landscape. 
There is a need for growing capacity in the region’s education and training system.  This
is not just for volume, but for effectiveness, responsiveness and connectivity between
education and training providers and the Net Zero/Clean Growth business base. 
Perth & Kinross Council, with stakeholders, has identified the need to assess skills
provision and support providers as well as the local supply chain to meet the demand
arising from heat transition and energy efficiency works, operations and maintenance. 
Working in partnership with communities to build community wealth and wellbeing
Perth & Kinross Council is committed to work in partnership with communities through the
Perth and Kinross Offer and for communities to develop solutions locally shared and owned.
3 https://www.h100fife.co.uk/

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Communities could take advantage of heat transition and energy efficiency opportunities and
build community wealth and wellbeing. This could cover energy production, storage or
distribution as well as purchasing goods or services. Perth & Kinross Council with
stakeholders has identified the need to evaluate mechanisms to support communities in
achieving such aim. 
There are several on-going projects across Perth & Kinross that are either community-led or
community-focused that support the heat and energy transformation.  A collection of these is
listed in the Table below. 
Theme  On-going projects
Home Energy Advice to Residents The HEAT Project, SCARF, Warm
Connections, Citizens Advice Bureau all
provide free home energy advice
Community Energy Projects Rumbling Bridge Hydro, Welton of Creuchies
Wind Farm, Comrie Croft Smart Energy Grid
Demonstrator Project are a sample of a few
of the several on-going community energy
projects
Support businesses to address energy
efficiency and decarbonisation
Green Business Grants from PKC provide
funding for businesses, The HEAT Project
provides free energy advice to SMEs
Community decarbonisation  Several groups are focused on decarbonising
their communities and community assets –
examples include CATCH – Loch Leven and
the Blairgowrie and Rattray Development
Trust 
Mobilising partners and public and private investments for projects 
Perth & Kinross Council, with stakeholders, has identified the need to evaluate a possible
Strategic Energy Partnership to unlock delivery of, though potentially not limited to, heat
networks. An energy partnership would be a legally defined, collaborative arrangement between
Perth & Kinross Council and an external organisation to bring capital investment and delivery

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capability into large energy-related projects. The projects taken forward by the energy
partnership could deliver on local priorities relating to carbon reduction, fuel poverty, and
energy resilience. The Council is also considering the scope of any partnership proposed and
will assess the potential for an energy partnership to be the leading body in the delivery of the
wider net zero agenda for Perth and Kinross rather than focused solely on heat networks. This
could mean mobilising other public/social partner organisations to aggregate demand and
programmes. Development of this is a key action in the LHEES Delivery Plan and all options
relating to procurement route, governance structures, control versus risk arrangements and co-
investment would be explored.

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12. GOVERNANCE AND MONITORING
12.1 Governance
The delivery and review of Perth and Kinross LHEES Strategy and Delivery Plan will be
supported by the following Council’s Governance arrangements and relationships: 
Perth and Kinross Council’s Climate Change and Sustainability Committee will provide
scrutiny, assess performance and consider LHEES Strategy and Delivery Plan reviews. The
nomination of an elected member or elected members as Champions will be explored. 
Perth and Kinross Council Climate Board will provide strategic directions and monitor
progress and performance. An Executive Sponsor and a Senior Responsible Owner will be
identified. 
Perth and Kinross Council Climate Change Working Groups and external partners will
deliver actions via identified project managers and agreed workstreams. 
Perth and Kinross Council LHEES co-ordination team will ensure coordination and
monitoring of Delivery Plan actions and will report to the Climate Change Board.

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12.2 Monitoring 
Perth and Kinross Council LHEES co-ordination team’s main tasks will include:
- Data: update data and support access to data to all stakeholders
- Communication and engagement: co-ordinate communication and engagement plan
- Risk & Monitoring: develop risk register and produce monitoring reports
- Reviews: prepare and co-ordinate LHEES Strategy and Delivery Plan reviews
- Best practices and training: provide support to project managers in the form of
templates, best practices and training.
- LHEES Steering Group: coordinate and support LHEES Steering Group
Monitoring reports will be produced every quarter for the Steering Group and the Board
and annually for the Climate Change & Sustainability Committee with a full review of the
Strategy and Delivery Plan every 5 years. The next full review will be in 2029. A Risk
register will be developed and has been included as one of the early actions of the
Delivery Plan. 
Engagement will be maintained and developed with key stakeholders through the LHEES
Steering Group and between the Steering Group, Perth and Kinross Council and our
residents, communities and businesses to achieve a successful LHEES Strategy and
Delivery plan delivery. A Communication and Engagement Plan will be developed by the
Steering Group and has been included as one of the early actions of the Delivery Plan.
The Plan will set out how the Steering Group will conduct regular consultation and
engagement with stakeholders. Engagement with residents, communities, businesses and
private landlords would be particularly important. It will also ensure there is awareness of
the key heat transition and energy efficiency priorities for Perth and Kinross until 2029.

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13. GLOSSARY
13.1 Abbreviations
Acronym Description
EES Energy Efficient Scotland
EESSH Energy Efficiency Standard for Social Housing
EPC Energy Performance Certificate
EST Energy Saving Trust
GIS Geographic Information System
HEEPS:ABS Home Energy Efficiency Programmes for Scotland: Area Based Schemes
HIB Heat in Buildings
IZ Intermediate Zone
LA Local Authority
LAEP Local Area Energy Planning
LHEES Local Heat and Energy Efficiency Strategy
LPG Liquefied Petroleum Gas
mxd Map Exchange Document
PEAT Portfolio Energy Analysis Tool
SAP Standard Assessment Procedure
ToC Table of Contents
UPRN Unique Property Reference Number

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13.2 Terms
Terms Description
Baselining Baselining is the purpose of understanding at local authority or strategic level, the
current status of the buildings against the LHEES Considerations, Targets and
Indicators.
Building-level Pathway As part of LHEES Stage 5, a building-level pathway is the outcome of the
assessment undertaken using PEAT. It provides the likely energy efficiency retrofit
technologies, as well as the low carbon heating system (where applicable) to
support building level decarbonisation. 
Criteria Criteria are the settings applied to the Indicators for each Consideration in order to
support Baselining, Strategic Zoning and the identification of Delivery Areas. An           
C                    “  ”                I            “                (Y/ )”
to identify properties with uninsulated walls. Another example is the definition of an
“           ”                                  ,                                         
“           ” I        .         S                           
of default Criteria that local authorities may wish to use, with flexibility to update and
augment these to support local needs or for more focused analysis linked to specific
actions and project identification within the Delivery Plan.
Data - Alternative Alternative data, can overwrite the Core data to improve accuracy (national to local
level of detail, e.g. local housing data to overwrite fields in Home Analytics). 
Data - Core Core data is the data that is essential to complete the minimum requirements of the
LHEES analysis. Core data will come from national datasets e.g. Home Analytics or
the Scotland Heat Map.
Data - Supplementary Supplementary data allows inclusion of additional Indicators to inform specific, local
basel & targets; also, Supplementary data can be used in GIS investigation to
complement the Core analysis carried out in any assessment. An example of
Supplementary data would be the inclusion of a constraints appraisal as part of a
district heating analysis. 
Data Zone Data zones are groups output areas which have populations of around 500 to 1,000
residents.
Delivery Area Delivery areas are at a higher granularity than Strategic Zones. These spatial zones
should set out clusters of buildings within a Strategic Zone or across the whole local
authority that identify potential solution(s) at a delivery level. They will be an
important starting point for identifying a range of projects, regulation and actions
that are within the competence of the Scottish Government, local authorities and
wider partners (included as actions to be developed in the LHEES Delivery Plan).
Detailed practitioner
approach
These Steps form part of the detailed practitioner approach in LHEES Stage 4,
Generation of Initial Areas to set out particularly suitable heat network zones and to
support project identification.  
Indicator For a given Consideration, the purpose of an Indicator is: 
1) to act as a key information field to help characterise and baseline the local
authority.
2) to act as a key information field to support strategic zoning and generation of
initial delivery areas; 
3) if suitable, to act as a key information field to measure progress against Targets
over the duration of the LHEES - set out in the LHEES Delivery Plan. 
For some Considerations, one Indicator may be sufficient, but for others a range
may be appropriate.

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Intermediate Zone Intermediate zones are a statistical geography that are designed to meet
constraints on population thresholds (2,500 - 6,000 household residents), to nest
within local authorities, and to be built up from aggregates of data zones.
LHEES Considerations The LHEES Considerations are a list of technologies, building typologies and policy
priorities used to identify and target interventions. They include:
- Heat networks
- Off-gas grid buildings
- On-gas grid buildings
- Poor building energy efficiency
- Poor building energy efficiency as a driver for fuel poverty 
- Mixed-tenure, mixed-use and historic buildings
LHEES Delivery Plan An LHEES Delivery Plan is a document setting out how a local authority proposes
to support implementation of its local heat and energy efficiency strategy.
LHEES Guidance The LHEES Guidance sets out the production and content requirements for a local
authority to prepare a Local Heat and Energy Efficiency Strategy and Delivery Plan.
Its purpose is to ensure that a Local Heat and Energy Efficiency Strategy and
Delivery Plan contain outcomes and actions that are backed up by robust data and
analysis, supported by stakeholder engagement, and that are linked to national and
local priorities, plans and targets.
LHEES Methodology The LHEES Methodology is a more detailed, step by step approach, which includes
models, tools and templates, and represents best practice in how to produce an
LHEES in accordance with the requirements set out in the LHEES Order and
Guidance.
LHEES Stages There are 8 LHEES Stages proposed in this methodology. The purpose of the
LHEES Methodology is to enable the local authority to complete LHEES Stages 1 to
6. The completion of these Stages will provide the local authority with the data
analysis and evidence base to enable them to complete their LHEES Strategy and
Delivery Plan documentation. There are two LHEES reporting templates included
alongside this methodology– LHEES Strategy example template and LHEES
Delivery Plan example template. The completion of these two templates will satisfy
the completion of LHEES Stages 7 and 8. The 8 LHEES Stages proposed in this
methodology are:
1 - Policy and strategy review
2 - Data and tools library
3 - Strategic zoning and pathways
4 - Generation of initial delivery areas
5 - Building-level pathway assessment
6 - Finalisation of delivery areas
7 - LHEES Strategy
8 - LHEES Delivery Plan
LHEES Strategy An LHEES Strategy is a long-term strategic framework for—
-                                                                             ’      ,
and
- the reduction of greenhouse gas emissions resulting from the heating of such
buildings
Mixed-tenure, mixed-use
and historic buildings
Mixed-tenure and mixed-use buildings could include a mixture of owner occupied,
private rented and social housing, and also non-domestic uses, or simply multiple
ownership within the same tenure. Historic buildings include the buildings that are
within conservation areas or those that are listed buildings. These categories may
require established alternative approaches and regulation for the installation of low
carbon heat and energy efficiency solutions and where specific advice and support
might be available relating to the installation of these solutions.
Potential Zones The analysis carried out for strategic zoning and pathways for the heat networks
Consideration is to identify potential zones rather than the otherwise used naming
convention of Delivery Areas. The potential zones identified are to be included in

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the LHEES Strategy and should inform actions around further investigation /
progression within the LHEES Delivery Plan. The heat networks Consideration
analysis and activity carried out within LHEES is also anticipated to support activity
related to formal zone designation as required by the Heat Networks (Scotland) Act
2021.
Raster A matrix of squares, or grid, used as a method of data analysis in GIS. Each cell in                                                              
’          .
Strategic Zone Strategic Zones present a visualisation of the potential pathways to decarbonise the
building stock at a local authority level. These could, for example, be split out by
intermediate zone or data zone. They are useful to understand the baseline
performance, the scale of potential and initial areas of focus, which could be used to
inform Delivery Areas and follow on engagement.
Targets Targets are the measurable aspect of the Consideration and are likely to be taken
directly from national and/or local policy documentation, for example net-zero by
2045, or EPC C by 2040. Targets are likely to comprise of end-point targets and
milestone targets and would sit along a timeline within (and beyond) the LHEES.
This timeline would help to prioritise the types of projects undertaken within the
LHEES over its duration.
Weighting For some Considerations, one Target and Indicator may be sufficient, but for others
a range of Indicators may be appropriate to contextualise and characterise
performance against a Target and/or progress towards a Consideration. If multiple
Indicators are used in strategic zoning or the identification of delivery areas, a
Weighting can be applied based on the importance of each. The LHEES
methodology sets out a core set of default Weightings for instances where multiple
Indicators are suggested as a default setting. There is flexibility to update and
augment these to support local needs or for more focused analysis linked to specific
actions and project identification within the Delivery Plan.

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14. APPENDICES
Annex A. Baselining
- LHEES Strategy Domestic Baseline Report link
- LHEES Strategy Non-Domestic Baseline Report link.
Annex B. Engagement and consultation
- LHEES Steering Group agreed role, remit and membership.
Annex C. Strategic Zones and pathways
- LHEES Heat Network Analysis Report here
- Potential Heat Network Zones Maps web map
- LHEES potential Heat pump and secondary heat pump deployment areas Report
here
- LHEES potential Heat pump and secondary heat pump deployment areas Maps
here

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ANNEX  B 
PERTH AND KINROSS LOCAL HEAT & ENERGY EFFICIENCY STRATEGY (LHEES)
2024-2045 AND LOCAL AREA ENERGY PLANNING (LAEP)
STEERING GROUP ROLE AND REMIT
Purpose 
The purpose of the Perth & Kinross LHEES/LAEP Steering Group is to provide a platform to
bring together key stakeholders to support the delivery of the Perth & Kinross LHEES/LAEP
Strategies and Delivery Plans. 
The LHEES/LAEP requires input from a range of key stakeholders to ensure relevant plans,
strategies, projects & data help to inform the final outputs as well as enabling key
opportunities and challenges to be explored together. It will also provide an opportunity to
develop collaborative partnership working in areas of work where there are commonalities,
increase efficiencies in the delivery of shared projects/pieces of work, and, where possible,
provide sustainable outcomes across a number of themes including:
• Addressing poor building energy efficiency as a driver of fuel poverty
• Poor building energy efficiency 
• Heat decarbonisation
• Wider energy systems considerations
Remit:
To support this, the Group will work collaboratively to:
• provide updates on the LHEES & LAEP programme, including through planned
external workshops to seek feedback on specific outputs & deliverables.
• share information and associated data of existing and future projects & plans linked
to LHEES/LAEP.
• discuss key topics and areas linked to LHEES/LAEP including any concerns, risks
and challenges.
• through strategic collaboration build upon areas of commonality and joint working –
developments, programmes, projects and sharing of best practice.
Frequency of Meetings
The first external stakeholder meeting took place on 30 March 2023. The Group shall meet
every quarter or more often if required. If members of the group are unable to attend, they
shall send a representative on their behalf. An action plan log will be circulated before
meetings and updated after meetings.

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Membership
Membership of the group will initially comprise the following stakeholders. 
Stakeholders Key Contact(s)
Perth & Kinross Council (various officers) Climate Change & Smart
Investment Manager - Serge
Merone (Chair)
Shelley McCann (Lead Officer -
Co-ordination Team)
Representatives from Properties:
Grant Key / Nicola Lennon
Energy Savings Trust Dai Grady
Victor Chamosa Pino
The Heat Project Martin Mathers
Home Energy Scotland TBC
Horsecross Ginger Ramsden
Live Active Gary Watson
Culture PK Kenny McWilliam
NHS John Ruddy
Perth & Kinross Climate Change Commission Nathan Jamieson
John Ferguson
Martin Mathers
PKAVS Graham Illsley
SCARF David Mackay
Scottish Water Helen Smith
Scottish Futures Trust Stephen Vere
SGN Colin Thomson
SPEN Stuart Walker
Nick Evans
SSEN Rhys Williams
Adam Bain
TACTRAN Mark Speed
Advanced Infrastructure Lily Cairns Haylor

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Zero Waste Scotland Calum Robertson
Chris Morrison
Federation of Small Businesses David Groundwater
Growbiz Jackie Brierton
Perthshire Chamber of Commerce Vickie Unite