Heat Network Efficiency Scheme (HNES) evaluation
Findings from the interim evaluations into the administration, delivery and impacts of the Heat Network Efficiency Scheme (HNES).
Applies to England and Wales
Documents
Details
The Heat Network Efficiency Scheme (HNES) opened to applicants in February 2023, offering capital grants (supporting delivery of performance improvement measures) and revenue grants (supporting optimisation studies). These publications evaluate the process and impact of HNES across its early funding rounds, as well as optimisation studies funded through the preceding HNES Demonstrator (2021 to 2022):
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HNES Phase 2 report - Process evaluation of HNES (funding rounds 1 and 2) and impact evaluation of the demonstrator revenue scheme. Includes an annex of optimisation study analysis, outlining the key themes of recurring areas of sub-optimal network performance from the 73 demo optimisation reports.
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HNES Phase 3 report - Interim impact evaluation of revenue projects, and second process evaluation. Includes main scheme revenue optimisation report findings highlighting common issues and their suggested improvements in the optimisation studies.
The evaluation explores how projects were mobilised, the effectiveness of optimisation studies, and what the next steps for revenue projects are. It identifies what has worked well, what challenges were encountered, and how learnings can inform future rounds and wider heat network policy. The report also includes interim findings on contribution claims and recurring themes of poor performance.
The evaluation was commissioned by the Department for Energy Security and Net Zero (DESNZ) and undertaken by a consortium of RSM UK and partners.
This also includes a policy response, which reflects on the evaluation findings, provides further context and highlights where changes have been made to HNES design and delivery since the reports were written.