Medium-scale industrial and commercial clusters are common across the UK - from industrial estates and logistics hubs to research parks and mixed-use business sites. While they may not always be major industrial energy users individually, they collectively represent an important part of the transition to a low-carbon economy.
These sites are also difficult to assess consistently due to wide variation. This means standard regional modelling can miss important local detail, while detailed bespoke studies can be too resource-intensive to apply widely.
Working with Midlands Net Zero Hub, Regen has developed and tested a flexible method for understanding energy use across these common industrial sites, identifying practical routes to decarbonisation and supporting wider rollout across similar clusters.
Medium-scale industrial clusters are common nationally, but are often underrepresented in energy modelling and planning
A method designed for common industrial sites
The project focused on medium-scale clusters across light industry, research, logistics and commercial activity. These types of sites are common across the Midlands and nationally, but are often underrepresented in energy modelling and planning.
Across two phases, Regen studied six industrial and commercial clusters across the Midlands, ranging from mixed-use industrial estates and logistics hubs to food manufacturing and research-focused campuses.
The method is designed to be flexible. It is grounded in open datasets and desktop research to provide a bespoke estimate of a cluster’s energy use and decarbonisation options, but can be enhanced by more detailed engagement and site-specific information wherever this is available.
Flexible enough for different levels of engagement
One of the main findings from the project is that industrial and commercial clusters differ significantly in how easy they are to engage. Some sites have a clear owner, developer or coordinating organisation with visibility across the cluster. Others are more fragmented, with multiple landowners, occupiers and businesses operating independently.
Our method is designed to work for all sites, regardless of the degree of engagement possible. This makes it well-suited to both area-based network planning, as well as more detailed studies of specific clusters.
The process is also able to gain value from a wide-range of non-energy data, such as using employee counts to enhance sector-based energy consumption assumptions. This is important, as even when there is strong engagement there is not always knowledge of energy trends within organisations.
Turning analysis into practical priorities
For many of the clusters studied, electrification is likely to be the primary route to decarbonisation, particularly for space heating, transport and lower-temperature industrial processes, which dominate most of these sites. Our studies highlighted common barriers that can affect the pace and feasibility of electrification, including investment costs, high electricity prices and electricity connection delays.
By taking a cluster-level view, the method helps place these barriers in the context of a specific site. This can support more practical decisions about where to prioritise investment, where collaboration may be needed and what further technical work is required.
Cluster-wide analysis can also identify opportunities that individual organisations may struggle to deliver alone, such as shared energy infrastructure, waste heat use and local energy networks.
Supporting local and regional energy planning
The project shows that common industrial and commercial sites need approaches that are both systematic and adaptable.
For local authorities and regional bodies, the method can support area-based energy planning by helping to identify where industrial and commercial energy demand is concentrated, what types of decarbonisation options may be relevant, and where further engagement or infrastructure planning may be needed.
For industrial parks, site owners, network operators and policymakers, it can help build a clearer picture of current energy use, future electricity demand and practical next steps.
Download the reports
The project has produced two reports.
The Industrial Energy Modelling – Cluster Report presents a regional study of non-domestic energy use across Leicester, Leicestershire and the East Midlands Combined County Authority, alongside four cluster studies that formed the basis for developing the method.
The Industrial Energy Modelling – Roll-out Report applies and refines the method through two further cluster studies and sets out a framework for wider use. The report aims to lower the barrier to entry for similar clusters to replicate the study themselves or with support from relevant third parties.
Working with you
Regen supports local authorities, regional bodies, network operators and industry partners to understand industrial and commercial energy demand and identify practical routes to decarbonisation. Get in touch to discuss how this approach could support industrial decarbonisation planning, local energy strategy or cluster-level analysis in your area.
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