£2.7m in Heat Network Efficiency funding to be shared across 33 innovative projects

The latest round of funding from the government's Heat Network Efficiency Scheme (HNES), launched in 2023, will support improvements and research across 33 projects in England and Wales. The funding, aimed at both private and public sectors, covers system upgrades and optimisation studies through revenue grants.

Two universities will be among the recipients, focusing on improving the reliability of low-efficiency networks, including residential district heating systems. Overall, £2.7 million will be shared across these projects, part of broader efforts to enhance older, inefficient heat networks in operation.

Notting Hill Genesis Housing Association is the largest recipient, receiving £1.8 million in capital grants for two London heat networks in Westminster and Hackney. The upgrades will tackle heat loss, poor insulation, and efficiency issues, building on research from the first round of HNES funding.

Another recipient, the Listello Buildings Management Company, will receive £71,000 to update a heat network serving 75 apartments. The funds will focus on improving pipework, insulation, and metering systems.

The City of York Council was awarded £125,075 for addressing heat loss at the Glen Lodge Extra Care facility, which has suffered from system interruptions.

Since the scheme's launch, more than £30 million has been distributed to over 190 heat networks, serving over 41,000 residents. Louise Singleton, principal consultant at Gemserv, emphasised the importance of funding in addressing inefficiencies and driving improvements across the networks.

She said: "It is particularly encouraging to see applicants being proactive once receiving the output of their HNES-funded optimisation studies.

Projects are now being awarded capital funding to implement recommendations from these studies that will go on to improve outcomes for residents and occupants."

"We look forward to working with heat networks throughout England and Wales who plan to apply for HNES in future rounds after being inspired by demonstrated successes from our funded projects."

MP Miatta Fahnbulleh, minister for energy consumers, said the latest funding round boosted the growing number of heat networks that have benefited from the HNES.

She said: "Heat Network customers should be able to expect a good quality service – delivering regular, reliable heating and hot water.

"This £2.7m funding boost will transform 33 old and inefficient heat networks across the country, adding to our support of more than 41,000 residents."