Guidance

Heat Networks Investment Project (HNIP)

Nine applications were successful in the pilot phase of the £320m Heat Network Investment Project (HNIP). Total awards are worth over £24m.

Documents

Heat Network Investment Project (HNIP) pilot: successful recipients

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Details

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.

See the overview of government support for heat networks.

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.

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. We are building the lessons from the HNIP pilot into the main scheme design and delivery approach; we expect the main scheme to start receiving applications in autumn 2018 and allocate first year funding by March 2019 as planned. 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 31 January 2018. For more information on Round 7 or on previous funding rounds, see Heat networks delivery funding or email the Heat Networks Delivery Unit at hndu@decc.gsi.gov.uk.

Published 7 April 2017