Having spent a number of years in the field of district heating control, it has become apparent to the SME Proposer that the efficiency of these systems could be improved considerably. However, from experience they have learnt that this cannot be achieved with well-established technologies. A new technology which can provide a solution to this problem has been developed by InteSys Ltd, the Prime Proposer. This is the ISLEC Microchip, which has won twoS MART Awards from the UK Department of Trade and Industrv. The Microship can 'fingerprint' heat flow characteristics in and out of a building with a high degree of accuracy, and create a virtual equivalent of the buildinq inside the chip. This can be used to predict the heating needs of the building on an on-going basis. SMEs can use the ISLEC Microchip for development of more efficient control systems which perform control actions in advance, and thus save a lot more energy, in comparison with conventional control systems. It is thereforeproposed to investigate ISLEC-based solutions to the above problem. However, ISLEC cannot provide solutions to this problem in its existing form. Development of a network of ISLEC Microchips is required in order to carry out further research leading towards the solution of the problem.