The announcement brings Scotland’s total funding for the development of district heating from sources including geothermal energy and solar power to £10.5 million (US$17 million).
The nation has set a target to supply 40,000 homes with district heating by 2020.
Energy minister Fergus Ewing said, ‘Scotland is an energy rich nation where heat accounts for over half of all energy we use, with an estimated £2.6 billion a year being spent on heating and cooling in Scotland.’
Ewing said Scotland needs ‘a heat system driven by the need for affordable warmth for our households and resilient heat supply, with a competitive business and industry base, which addresses climate change, and offers the potential for the low carbon economic opportunities supporting sustainable economic growth.’
As part of a Europe-wide project involving mapping heating and cooling demand for 23 European cities, Scotland is also to receive a share of €2 million in EU funding to develop heat networks around the country.