Over £3m to improve heat networks across England and Wales

  • 3rd June 2024

Over £3m worth of funding is being awarded through the Government’s Heat Network Efficiency Scheme (HNES) to enhance heat networks across England and Wales.

The funding, allocated in Round 5 of the scheme, will improve the efficiency of heat networks for the benefit of 8,492 residents and various private and public-sector organisations, including a number of NHS trusts.

The funding awarded in this round brings the total awarded by HNES to over £30m, with an additional 6,500 residents, hospitals, universities, and public-sector institutions set to benefit from optimisation studies in round 5.

These studies will unlock additional areas for improvement that reduce energy bills, reduce energy consumption, and minimise customer detriment.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “From Lancaster University to the British Army’s Wellington Barracks, heat networks are playing an important role in reducing energy use and cutting the UK’s emissions.”

And Louise Singleton, principal consultant at energy consultancy, Gemserv, added: “As of today, HNES has awarded over £30m to existing heat networks in England and Wales to optimise their efficiency levels so they’re fit for decades to come. Not only this, but today’s announcement is the first to show how HNES-funded revenue studies can then lead to tangible improvements funded through capital applications.

“Optimisation studies, unlocked by revenue grant funding, are crucial to help identify and inform heat network operators of the opportunities that exist to improve a heat network’s efficiency levels.

“We are delighted to be supporting projects all the way through from study to implementation.”

Projects which have successfully secured HNES funding in Round 5 include The London Borough of Camden, which was awarded £202,950 for the Gospel Oak Royal Free Hospital waste connection network.

The scheme delivers waste heat from the hospital to Camden’s communal boiler houses serving 1,244 residential properties.

Benefitting residents connected to the scheme, funding from HNES will go towards restoring waste heat to the heat network.

In addition to capital grant funding, projects in Round 5 have also been awarded over £443,000 of revenue grant funding to undertake optimisation studies to review the performance of their heat networks and identify areas for improvement.

Successful applicants include Medway NHS Foundation Trust and Royal United Hospitals Bath NHS Foundation Trust.

HNES can provide up to 50% of eligible project costs for capital grant applications and up to 100% of eligible project costs for revenue (optimisation study) grant applications.


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