Members of Perth and Kinross Council’s strategic policy & resources committee will hear how the River Tay Heat Pump and District Heating project aims to use water heat exchange pumps to capture renewable energy from the River Tay without harming wildlife.

The resulting District Heating Network will supply affordable heat to 211 rented houses, four serviced sites and manufacturing units at Perth Food & Drink Park, North Muirton Primary School and possibly other public buildings in the first phase.

A business case for the project has successfully secured £2 million from the Scottish Government-funded Local Energy Challenge Fund towards the heat pipe network costs. The scheme will be one of the largest demonstrator projects of its type in the UK.

Individual households which are linked to the scheme should benefit from reduced total fuel bills by £200 per year from electric heating and £100 per year from gas heating. The project will also reduce carbon emission by 450 tonnes of CO2 per year.

Councillors will also be told how businesses at the Perth Food & Drink Park can benefit from a new solar farm.

Completed on land at the Food & Drink Park, the solar farm of 300 panels at 75KW will produce electricity which will be distributed through a private network. The farm will work jointly with the heat pump project and it is estimated that it could generate income of around £10,000 a year over 20 years to support the maintenance and operational costs of the park.

Both projects are part of the council’s ambitious Tay EcoValley project to grow the economy in a resource-efficient and sustainable way.

Councillor Alan Grant, vice-convener of the strategic policy & resources committee, said: “The River Tay Heat Pump and District Heating Project allows us to tap into the immense power of the river in a way which will not harm wildlife, but will provide a source of renewable energy and access to cheaper heating to reduce fuel poverty in the north of Perth and help attract more food & drink related businesses to Perth on the basis of lower energy costs.

“The project will also be used as a model for the roll-out of similar schemes across the region, and potentially across Scotland. Together with the solar farm at Perth Food & Drink Park, this project demonstrates the exciting potential of Perth City as we continue to innovate for the future, and in doing so create higher-value, higher-skilled jobs.”