Kirsty Lambert, director of Switch2, said: 'With this landmark legislation, Scotland is targeting a 20-fold increase in the number of homes connected to heat networks by 2030. We are proud to play a role in supplying and operating some of the existing 830 Scottish heat networks and look forward to helping to develop future projects that provide a sustainable, affordable and reliable solution for heating towns and cities.'

'Heat Networks are a proven and cost-effective method of reducing the carbon intensity of domestic heating and the legislation will help Scotland deliver on its net zero 2045 ambitions. Providing heating from a central low carbon source, rather than individual fossil fuel can also achieve cost savings, which the Scottish Government estimates at around £130 for every household that connects to a heat network.'

Scotland is the first UK country to introduce legislation that supports heat network growth, including an ambitious goal to connect 650,000 homes by the end of the decade.

A new licensing system is also being created to drive up industry standards and improve consumer service and confidence. New legal rights for heat network developers and operators will also be introduced - to achieve greater alignment with regulated utilities and increase investment and growth in the sector.

Crucially, a new consent system will ensure that new heat networks are rolled out in locations where they will deliver most benefit and meet local needs.

Scotland’s Energy Minister Paul Wheelhouse said: “Heat networks have huge potential to reduce emissions in our homes and buildings by providing more efficient, environmentally-friendly solutions. The Heat Networks (Scotland) Bill – the first legislation of its kind in the UK – unlocks this potential, and marks the beginning of what will be a period of transformational change in how we heat our homes and business premises.'