Valuation of passive provision for heat network investments

This report, edited by Edited by Andrew Brown and Mary Robertson, presents research on economic evaluation of systems of infrastructure provision by iBUILD researchers and collaborators in a form that is intended to inform policy makers and stakeholders of all kinds, as well as academics. It has arisen through two factors: firstly, the increasing recognition of the importance of sustainable and resilient infrastructure to economy and society by policy makers, businesses and wider civil society; secondly, the wealth of expertise on the economic evaluation of systems of infrastructure provision across the iBUILD Centre. In this chapter the authors apply ideas about real options value and passive provision to case studies related to the development of heat networks by local authorities in the UK.