Heat Networks Investment Project (HNIP)
- Department for Business, Energy & Industrial Strategy
- Part of:
- Low carbon technologies
- 7 April 2017
Nine applications were successful in the pilot phase of the £320m Heat Network Investment Project (HNIP). Total awards are worth over £24m.
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The supported heat network projects provide heat to approximately 5,000 domestic customers and 50 non-domestic buildings. Of the domestic customers on the supported networks, approximately 2,500 will see bill savings against the counterfactual heat source and, of the non-domestic customers, 19 will see savings. A total of 216,324t CO2 will be saved over the next 15 years, across all 9 heat networks. Total heat supplied annually by these networks will be around 85,000 MWh/year.
Background on HNIP and pilot
Heat networks form an important part of our plan to reduce carbon and cut heating bills for customers (domestic and commercial). They provide a unique opportunity to exploit larger scale – and often lower cost – renewable and recovered heat sources that otherwise cannot be used. These sources include heat recovered from industry and urban infrastructure, from canals and rivers or energy from waste plants.
- BEIS news story: New ‘central heating for cities’ to help reduce energy bills
The £320m Heat Networks Investment Project (HNIP) capital investment programme is expected to support up to 200 projects by 2021 through grants and loans and other mechanisms and to lever in up to £2bn of wider investment, reducing bills, cutting carbon and forming a key part of wider urban regeneration in many locations. A consultation was carried out on this funding in 2016:
Details of the HNIP pilot:
The HNIP pilot ran from October 2016 to March 2017. Learning from the pilot is shaping the design and delivery of the main HNIP funding scheme which BEIS aims to launch by the end of 2017. For the pilot phase, applications were limited to local authorities (and other public sector bodies). We expect that the main scheme will have a wider scope. Eligible sponsors could include the private sector, community groups and not-for-profit groups (see consultation for more options).
Many of the successful projects were supported by BEIS’s Heat Networks Delivery Unit (HNDU). HNDU was set up to provide support (grant funding and guidance) to local authorities in England and Wales to progress the development stages of heat networks projects from heat mapping through to early commercialisation.
HNDU’s Round 7 funding is open until December 2017, subject to budget availability. For more information on Round 7 or on previous funding rounds, see Heat networks delivery funding or email the Heat Networks Delivery Unit at email@example.com.
Published: 7 April 2017