Support for new district heating networks

Almost £2.4mn is to be offered to 32 local authorities across England and Wales to support the development of heat network projects, designed to provide more efficient heat to buildings, through the government’s Heat Networks Delivery Unit (HNDU). Alongside this, the government has launched a £7mn scheme offering developers across the UK the opportunity to compete for funding to develop new heat networks technologies, such as recovering industrial heat or energy from waste.

The 32 local authorities are the third group of successful bidders to be announced under the government’s drive to promote the development of heat networks, also known as district heating. Heat networks mean individual homes and businesses do not need to generate their own heat, they can share it through a network of pipes carrying hot water.

There are approximately 2,000 heat networks in the UK at the moment, supplying heat to 210,000 dwellings and 1,700 commercial and public buildings, says the Department of Energy and Climate Change (DECC). A further 150 schemes are known to be under development by local authorities across the UK.

Estimates show that around 15% of UK heat demand could be cost effectively met by heat networks by 2030, and over 40% by 2050, says DECC.

Successful local authorities will be offered grants ranging from around £10,000 to £250,000 to kick-start heat network projects in England and Wales. The HNDU may also provide other types of support and guidance to successful local authorities, including assistance in developing business plans.