Local authorities invited to apply for heat network funds by end November


heat pipesLocal authorities and other public sector bodies can start applying for new heat network funding from today.

The government has made up to £39m available via a pilot scheme, part of £320m earmarked for heat network development over the next five years.

If bids for are deemed successful, the funds will be made available by 31 March 2017. Applications must be submitted by end of November.

The wider heat networks investment project will then be opened up beyond the public sector.

The Association for Decentralised Energy, formerly the Combined Heat and Power Association, welcomed the launch of the programme.

“This pilot is a cornerstone for attracting up to £2 billion of capital investment for new heat network infrastructure,” said director Tim Rotheray.

“More than 150 local authorities and a number of private sector property developers are working to deliver these infrastructure investments and build a foundation for a long-term district heating market in the UK.”

heatreportsmalThe Energyst recently published a report on the key challenges around decarbonising heat at lowest cost. Heat networks are seen as part of the solution, but face hurdles in terms of capital cost, attractiveness to investors, bankability and the number of moving parts involved in developing and building projects.

Investors say local authorities need to invest more in project scoping as modelling in many cases is poor, leading to business case failure.

The new government funding could go some way towards helping address those gaps.

See details of the funding here.

Download The Heat Report, free of charge, here.

Related articles:

The Heat Report 2016

Local authorities must scope heat networks better to get funding

Scrap renewable heat and energy targets and prioritise energy efficiency, government urged

The heat is on, but which technologies will decarbonise heat at lowest cost?

Decc consults on how £320m heat networks funding should be spent

Heat networks ‘could be subsidy free within five years’ with right framework

Government ‘has heat network numbers wrong’

Solar thermal and storage ‘key to decarbonise heat’

Heatpumps, biomass and CHP top firms’ heat investments for 2016

Waste heat a wasted opportunity

75p/kWh subsidies for district heating?

Brussels increases focus on energy efficient heating and cooling

Decentralisation the key to heat networks?

Tim Rotheray: Put users at heart of energy policy or watch it fail

CHP behind 6% of UK electricity, could do more

Councils step up heat network plans

Firms with CHP generators could be paid to stop exporting power

Local Authorities say finance and public procurement biggest barrier to heat networks

Free report: Financing energy efficiency

Click here to see if you qualify for a free subscription to the print magazine, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.


Please enter your comment!
Please enter your name here