This guidance, commissioned by BEIS, is a reference resource for heat network projects that are moving towards commercialisation.
The documents are structured around the first 4 cases of HMT’s ‘Five-Case Business Case Model’, which considers the viability of the project from 5 perspectives:
- procurement and state aid
Strategic and commercial guidance
This guidance supports completion of the Strategic Case and Commercial Case for a heat network project:
Heads of Terms
15 contract heads of terms (HoTs) documents for use by local authorities as a starting point for developing bespoke agreements for particular heat network projects.
Economic and financial guidance
The journey through the development of a Financial Model, which underpins the commercial reality of the Outline Business Case (OBC): use to identify areas where commercial viability of a project can be improved, and where customer protection for the end user can be offered. Topics covered include:
- developing the Techno-Economic Model into the Financial Model
- heat pricing
- revenue streams and avoided costs – maximising opportunities
Procurement and state aid
An examination of the public law factors that will govern a district heating scheme, with practical advice alongside the legal analysis. It provides case study examples and practical tips for managing the often complex, and occasionally over-lapping, public law issues that arise on a district heating scheme. Topics covered include:
- procurement law
- state aid