The study will assess the feasibility of using renewable energy — such as a dedicated wind turbine — to power a district heating network, an approach that, if viable, could unlock new opportunities for sustainable community heat in the UK.

The project could deliver reliable, low-carbon heating to one of the larger settlements on Shetland’s mainland. According to Shetland Islands Council, household energy bills in the region are more than double the UK average. By reducing carbon emissions, this initiative supports Scotland’s net-zero goal for 2045 while contributing to the government’s target of expanding heat network supply from 1.5% to 8% by 2030 - equivalent to around 650,000 additional homes.

COWI brings extensive district heating expertise from major European projects, including Copenhagen’s HOFOR and Dublin District Heating. In Shetland, COWI conducted feasibility studies between 2007-2009 for heating schemes and has served as a trusted adviser to the Shetland Heat Energy and Power Company for 25 years, supporting the development of the Lerwick district heating project.

Andy Sloan, managing director at COWI UK, said: “The Brae District Heating Scheme is an exciting opportunity to demonstrate how energy can be harnessed more effectively to deliver real benefits at a community level. By leveraging our international experience, we’re developing a model to showcase the broader benefits of harnessing renewable resources while supporting Shetland Islands Council in developing a secure, affordable, and sustainable heating solution for local homes and businesses.”

Councillor Dennis Leask, chair of Shetland Islands Council’s development committee, added: “I am happy to see this project take another step forward. The concept of district heating is known to people throughout Shetland, given the success of the Lerwick District Heating Scheme. I look forward to seeing how COWI can explore the use of renewable energy and how that can benefit the community.”

The feasibility study and concept design are scheduled for completion by June 2025, with construction expected to commence shortly thereafter.