Support and guidance for local authorities developing heat networks.
Local authorities have a key role to play in making heat networks succeed. Their involvement, particularly in the development stages, can help realise the benefits of heat networks, while also delivering jobs and growth. In order to address the capacity and capability challenges which local authorities identified as barriers to heat network deployment in the UK, the government set up the Heat Networks Delivery Unit (HNDU) in 2013.
The Heat Networks Delivery Unit provides grant funding and guidance to local authorities in England and Wales for heat network project development.
Since its inception, HNDU has run 9 funding rounds – awarding £23 million in total – and is currently running Round 10. Over 250 unique projects have so far been supported across 150 local authorities.
The Heat Networks Delivery Unit provides support to local authorities in England and Wales through the early stages of heat network development:
- heat mapping
- energy masterplanning
- techno-economic feasibility
- detailed project development
HNDU support does not provide funding for commercialisation costs and costs associated with the construction, operation and maintenance of a heat network. The Heat Networks Investment Project (HNIP) is a £320m capital investment programme providing support for the capital costs of heat networks.
Local authorities apply for HNDU support through bidding rounds. All bids are reviewed by HNDU assessors before final recommendations are approved by a panel of financial, commercial and policy specialists.
Grant funding is provided to successful local authorities under Section 31 of the Local Government Act. Eligible costs are defined as externally commissioned consultancy costs for heat network development work. HNDU funding comprises no more than 67% of eligible costs.
If successful, each local authority is supported by a team of specialists within HNDU.
Round 10 is open from 1 May 2020 until midday 31 December 2020.
For details on how to apply, please see the HNDU Round 10 guidance.
We are now publishing a quarterly HNDU project pipeline with accompanying spreadsheet summary.
Local authorities supported by HNDU
A map and list of the local authorities supported by the Heat Networks Delivery Unit in rounds 1-9:
Heat network guidance
Related publications and tools
Evaluation of the Heat Networks Delivery Unit: Part 2 published April 2018