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Government launches £39 million Heat Network Investment pilot scheme

Last year the government announced that £320 million of funding would be made available as part of the Heat Networks Investment (HNI) project.

The government has now formally launched the HNI with a £39 million pilot scheme.  

The funding for the pilot scheme will be:

  • subject to a pre-qualification process for a single competitive funding round; and
  • funding will be split across two financial years ( 2016/17 and 2017/18).

It is currently expected that the remaining HNI funding will be available to support investment in heat networks over a period of four years commencing in 2017.

The pilot scheme is only open to local authorities and other public sector bodies (excluding central government) seeking investment in any efficient heat and cooling network in England and Wales.

Applications will be considered for grants or loans supporting:

  • initial construction;
  • expansion;
  • refurbishment (including equipment within properties); and
  • accessing recoverable heat..

TLT’s Patrick Sweeney said:

"The last 12-18 months have seen significant developments in this sector with a real focus on developing appropriate technical specifications for schemes and identifying ways to improve each customer's experience. These improvement coupled with HNI funding could act as a catalyst for further significant investment to develop more secure energy networks and supplies for consumers and businesses across England and Wales.”

Crucially, proposals submitted by local authorities and others will need to be well thought through and address the evaluation criteria to be applied by BEIS to bids. 

TLT has produced a practical guide for local authorities looking to develop district heating schemes and we would welcome be delighted to meet with you to discuss your requirements and current development in the district heating sector.  

This publication is intended for general guidance and represents our understanding of the relevant law and practice as at October 2016. Specific advice should be sought for specific cases. For more information see our terms & conditions.

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