Midlothian Energy Limited

In 2019, Midlothian Council declared a Climate Change Emergency, committing to achieving net zero by 2045. With deep industrial roots in coal mining, the region set out to transform its energy infrastructure - leveraging lessons from the past to build a more sustainable future.

Creating an innovative energy partnership

Following extensive market sounding and risk assessment, the council identified strong industry interest from the heat network sector in a joint venture model. A competitive dialogue procurement process led to the selection of Vattenfall as the preferred bidder in 2020. Later that year, Midlothian Energy Limited (MEL) was officially formed; a 50/50 joint venture between Midlothian Council and Vattenfall.

Our expertise at Vattenfall in designing, building, and operating large-scale heat networks across Europe was a key factor in the council’s decision. Beyond technical capability, we share a commitment to delivering economic and social benefits for local communities.

Delivering low carbon heat to Shawfair and beyond

One of MEL’s first major projects is a low carbon heat network for Shawfair Town, one of Scotland’s largest new urban developments. Just 15 minutes from Edinburgh, Shawfair is led by Shawfair LLP, a joint venture between Buccleuch Properties and Mactaggart & Mickel. 

The heat network has been expanded to serve Craighall Village, a neighbouring 600-home development by Cala Homes. With three new schools, cycle paths, green spaces, and retail areas, Shawfair and Craighall are designed for sustainable living - with MEL providing low carbon, reliable heat to power these growing communities.

Construction of the MEL heat network began in early 2023, welcoming its first customers in late 2024. The project was completed on time, within budget, and with exemplary health and safety standards.

In its first phase, the network will supply heat:

• To 3,000+ homes 
• To multiple buildings including schools, retail, and commercial spaces
• Saving over 2,500 tonnes of CO₂ per year (equal to removing 1,200 cars from the road)

The network is powered by surplus heat from waste at the Millerhill Recycling and Energy Recovery Centre, operated by FCC Environment. By producing low carbon heat locally, MEL enhances energy security for Midlothian residents - shielding them from volatile fossil fuel prices. This self-sufficient energy model offers a stable, cost-effective alternative to gas heating.

Scaling up: expanding the network

MEL is already exploring further expansion, with plans to:

• Extend the network north into Edinburgh, connecting university estates and existing buildings
• Increase heat connected to the MEL energy centre, with the potential to heat up to 10,000 homes equivalent
• Develop new heat network areas within Midlothian

Beyond heat: a holistic energy strategy

In addition to heat networks, MEL is working with Midlothian Council to explore other energy efficiency and renewable energy projects, including: 

• Investment in solar panels
• Home and public building energy efficiency upgrades (e.g. insulation and controls)

A model for future energy partnerships

MEL demonstrates that strategic procurement, long-term planning, and collaboration can drive real progress in decarbonising heat and achieving climate goals.

As we continue to expand, our commitment remains clear - to deliver innovative, low carbon energy solutions and build sustainable communities for generations to come.