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Investment support for new heat networks

The government has announced a new scheme for consumers and non-domestic users such as hospitals, schools and council buildings to participate in a district heat networks scheme. Opening this autumn, the £320mn Heat Networks Investment Project (HNIP) will offer grants and loans to both the public and private sectors in England and Wales for networks serving two or more buildings.

Heat networks could play a vital role in the long-term decarbonisation of heating, says the Department for Business, Energy & Industrial Strategy (BEIS), as they provide a unique opportunity to exploit larger scale renewable and recoverable heat sources. Heat networks could meet up to 17% of heat demand in homes and up to 24% of demand in industrial and public sector buildings by 2050, adds BEIS.

Energy Minister Claire Perry said: ‘The UK has led in the decarbonisation of electricity, and today’s announcement shows we are just as committed to tackling heat. The announcement creates a route to market for innovative energy projects across the country and demonstrates a key objective of the Clean Growth Strategy: to help deliver technologies that can lower bills, cut carbon and improve the quality of life for communities across the country.’

The announcement creates a route to market for innovative energy projects across the country and demonstrates a key objective of the Clean Growth Strategy: to help deliver technologies that can lower bills, cut carbon and improve the quality of life for communities across the country.’

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