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In the most significant funding round since its launch, the Heat Network Efficiency Scheme (HNES) has allocated nearly £20 million to enhance 63 heat networks across the UK. This wave of investment aims to boost efficiency, improve reliability, and cut energy costs—particularly benefiting low-income households, educational institutions, and NHS facilities.
Round 7 of HNES brings much-needed improvements to nearly 8,000 residents nationwide. A notable rise in applications for capital grant funding suggests that organisations are increasingly implementing network optimisation recommendations from earlier HNES-funded studies.
One example is Notting Hill Genesis, which has secured funding to upgrade the Baths Court heat network. Previously plagued by high energy consumption and frequent outages, the network will undergo a significant overhaul, ensuring 32 residents receive stable, efficient heating and hot water.
Louise Singleton, HNES Programme Manager at Gemserv, said, “We are delighted with the level of interest that HNES is receiving, and it is clear to see why. We are beginning to see the fruits of optimisation studies funded in earlier rounds as applicants return to the scheme for capital funding to help implement their study’s recommendations.
“It is also clear that HNES can help unlock significant benefits for both people and the environment. So far, HNES has helped over 51,000 residents and 300 heat networks and will save 200,000 tonnes of carbon over the next 40 years. As 2025 begins, we are looking forward to another year of improving outcomes for customers and operators.”
A significant portion of the funding—£18.5 million—directly supports 22 heat networks carrying out essential capital works. This initiative will significantly improve heating reliability for over 5,100 residents.
Key Projects Across the UK:
🔹 Wolverhampton City Council – The Heath Town heat network secures £8 million, delivering enhanced heating for 1,000+ residents through control system upgrades, pipework replacements, and new heat interface units (HIUs).
🔹 London Borough of Camden – The Belsize Court heat network will receive £278,000 to modernise 50-year-old infrastructure, tackling suboptimal efficiency and fixing a persistent issue of lukewarm water for tenants.
🔹 Portsmouth City Council – A £4.5 million investment will enhance the Charles Dickens heat network, benefiting 500+ residents with pipework replacements, better insulation, and upgraded plant room equipment.
🔹 Manchester City Council – Newton Heath’s heating system will be optimised with £606,000, addressing high return temperatures and inefficient controls while installing Thermostatic Radiator Valves (TRVs) in every home.
🔹 London Borough of Islington – Hathersage Court will benefit from £48,600 in funding to upgrade metering, insulation, and control systems, improving efficiency for 69 residents.
This latest round of HNES funding reinforces the UK’s commitment to energy-efficient, cost-effective heating solutions. Modernising ageing infrastructure, reducing heat losses, and enhancing system controls will benefit thousands of residents by lowering energy bills, improving reliability, and contributing to a moderniseainable heat network system.
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