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Last Mile has been contracted by Wates Residential to deliver what will likely be a first-of-its kind ground source heat network for Cardiff, located at the former Michaelston Community College site.
The contract with Last Mile will see the company and its delivery partner, deliver a low-emission ground source heat network comprising a centralised energy centre, 47 boreholes to extract renewable geothermal energy, and individual heat interface units in 235 new homes. Once construction at the 27-acre site is completed, Last Mile Heat will adopt and manage the network, transferring all operations away from Wates Residential and Cardiff Council to Last Mile’s expert team.
The development, which is also Cardiff’s first wellbeing village, is part of the Cardiff Living partnership between Wates Residential and Cardiff Council. It will see the creation of 115 open-market homes, 120 council homes, and a community hub, café, and medical centre that promotes independent living, health and wellbeing through its services and support.
Rachael Grierson-Gillespie, senior business development executive at Last Mile, said:
“Our ground source heat network is projected to reduce carbon emissions for the development by up to 80% compared to traditional gas heating, and 54% compared to air source heat pumps. It will also deliver Ofgem-regulated networks for heating, cooling and hot water with stable and transparent billing for residents.
“Solutions like this are crucial to delivering the affordable and sustainable housing the UK needs, and we’re proud to be involved with a project that demonstrates to councils and developers everywhere what’s possible with the right technology and financing.”
For Wates Residential, Last Mile’s innovative asset value model was a key factor in the decision to award the contract. The developer will recover almost half of the capital costs of the heat network through forward-funded rebate payments, removing a potential financial barrier to choosing one of the lowest-emission heating technologies available. This approach – uniquely available through independent utility providers such as Last Mile – enables both Wates Residential and Cardiff Council to meet their ambitious sustainability targets while preserving budgets.
As of 27 January 2026, Ofgem formally regulates heat networks in the UK, bringing consumer protections in line with other utilities to ensure fair pricing, support for vulnerable customers, service security, and robust technical standards. The new regulations are based upon the Heat Trust’s voluntary customer protection scheme that sets service standards for billing, support, and complaints. Last Mile is regulation-ready, having already enrolled all of its 2,000 heat connections across 13 heat networks with the Heat Trust’s scheme. Its heat networks have also been recognised with multiple awards, winning the Association for Decentralised Energy’s Heat Network Award 2025 and Utility Weeks’ Innovation Award 2025.