A total of £3.12 million will be provided to 54 heat networks in the latest funding round of the Heat Network Efficiency Scheme (HNES). The Department for Energy Security and Net Zero funding helps heat network owners and operators in all sectors improve the efficiency of underperforming heat networks. Capital grant funding is provided to aid performance improvement works with revenue grant funding for studies to determine opportunities for efficiency enhancements, such as new pipework or new meters.
The announcement brings the total funding to £17 million, which will also help facilitate improvements and optimisation studies for providers.
Lord Callanan, Minister for Energy Efficiency and Green Finance, said, “We want to ensure customers can access all the benefits heat networks have to offer, with regular, reliable heating and hot water. Today’s funding will see old and inefficient heat networks get the changes needed to prevent breakdowns and use less energy, keeping customers warm and saving them money on their energy bills.”
Capital grant funding for the cost of operational works to improve the efficiency of existing heat networks, some 50myears old, was awarded to: Hull University Teaching Hospital NHS Trust for two heat networks serving Castle Hill Hospital and Hull Royal Infirmary; University of Wales Trinity Saint David; Gateshead Council for East Street Flats; the London Borough of Brent for Granville Homes in the South Kilburn Estate Regeneration Area; Southampton City Council for the Holyrood Estate District Heating Scheme; Vattenfall’s Bristol Heat Networks for the Redcliffe Heat Network;
Citigen in London; and Veolia ES Sheffield fpr the Sheffield District Energy Network.
Organisations awarded funding for optimisation studies to identify areas of improvement included NHS trusts, housing associations and social housing providers and local authorities. Private sector companies included the Wembley Parade heat network in London, Hoxton Press heat network, Deptford Foundry heat network, the Seven Rivers heat network and Southampton Geothermal Heating Company, for the Southampton District Energy Scheme.
The Heat Network Efficiency Scheme supports performance improvements to existing district heating or communal heating projects. Round 6 is open and will close to applications on 2 February 2024