Heat Networks Delivery Unit

Heat

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Heathave Networka Zoningkey (HNZ)role willto designateplay areasin wheremaking heat networks aresucceed. expectedTheir toinvolvement, provideparticularly in the lowestdevelopment cost,stages, lowcan carbonhelp heatingrealise forthe buildings.

Thebenefits governmentof isheat now draftingnetworks, the zoningwhile implementationalso Statutorydelivering Instrumentjobs (SI) thatand willgrowth. implementIn order to address the proposalscapacity for heatand network zoning as setcapability outchallenges which local authorities identified as barriers to heat network deployment in the consultationUK, response.the Undergovernment theset SI,up the Heat NetworkNetworks ZoningDelivery AuthorityUnit (the ZA(HNDU) willin be2013.

The requiredHeat toNetworks publishDelivery aUnit five-yearprovides zoninggrant pipelinefunding everyand year.guidance Thisto islocal aauthorities listin ofEngland expectedand designatedWales zonesfor with heat networksnetwork toproject bedevelopment.

Since constructedits orinception, underHNDU construction,has run 14 funding rounds, awarding £39.7 million in thetotal. nextOver five300 years.unique projects have so far been supported across 188 local authorities.

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Round Network15 Zoningis pipelineavailable review

• local authorities in England and Wales
• registered social landlords
• NHS Trusts
• universities
• other government departments
• property developers

DESNZHNDU isfunding nowsupport lookingwill continue to developbe itsavailable futurein pipelineadvance of prioritisedheat potentialnetwork zones,zoning legislation coming in advanceto offorce. theThis statutoryfunding formationwill help support areas to continue the development of their projects in readiness for heat network zoning.

See the Zoningoverview Authority.of government support for heat networks.

Scope

WeThe areHeat thereforeNetworks invitingDelivery strategicUnit andprovides support to local authorities in England toand helpWales informthrough the developmentearly stages of heat network development:

• techno-economic feasibility
• detailed project development

HNDU support does not provide funding for commercialisation costs and costs associated with the futureconstruction, pipelineoperation and maintenance of a heat networknetwork. zonesThe Green Heat Network Fund (GHNF) can however support these activities as it is a commercialisation and capital grant programme that opened to identifyapplicants thein nextMarch tranche2022. ofInitially zonesa £288 million fund, its popularity has meant further funding has been made available to support organisations in the public, private, and third sectors in England. The additional funding can be broughtdrawn forwarddown forin implementation.financial years 2024/2025 through to 2027/2028.

The process

OnceDESNZ theis pipelineinviting hasapplications beenfor reviewed,direct project funding support for eligible Heat Network (HN) and technicalHeat assistanceNetwork mayZoning be(HNZ) offeredrelated toproject activities via a limited2-stage numberapplication process:

• stage 1 – will involve the submission of areasa toshort conductexpression initialof orinterest full(EOI)
• stage implementation2 – will involve the submission of zoningsupporting inevidence theirand/or area.
  a discussion with DESNZ for assessment (by invitation only)

WeProjects arewill invitingbe authoritiesassessed toby respondthe withHNDU informationbased on zonetheir opportunitymerits areasand inalignment theirwith localDepartmental areasobjectives bywith 29regards Mayto 2026.heat DESNZnetworks.

As per previous rounds, this will welcomeprioritise responsessupport atto anyprojects timethat ascan partdemonstrate the scale of athe continuousopportunity, processthe oflocal pipelinecapacity monitoring& butcommitment, onlythe thoseeconomic responsesviability receivedand beforecarbon thesavings. deadlineFurthermore, we will bealso reflectedconsider projects that are of strategic importance and, for Round 15, applicants should demonstrate why funding is required in this initialfinancial pipelineyear review(2025/26) exercise.to help us prioritise awards if we oversubscribed.

IfSupport youfor aresuccessful interestedprojects inwill responding,be pleaseprovided contactby HNDUDESNZ, atwhich hndu@energysecurity.gov.ukwill todirectly receivefund aand responseappoint pack,qualified whichconsultants willfrom includeits responseown guidanceframework andaccording mapsto ofa thedefined zonescope, opportunitybudget, areasand intimeframe youragreed localwith area.the applicant.

HNDU HeatRound Network15

HNDUFor previouslymore publishedinformation quarterlyon projectthis pipelines.or Theseprevious projectfunding pipelinesrounds, shouldplease notsee berelevant conflateddocuments withon thethis futurepage heatbelow networkor zoningemail pipeline.hndu@energysecurity.gov.uk. TheseTo documentsrequest arean notapplication currentlyform, beingplease updated,email buthndu@energysecurity.gov.uk.

HNDU willPipeline

We bepublish retaineda forquarterly reference.HNDU project pipeline with accompanying spreadsheet summary.

Local authorities supported by HNDU

Local authorities supported by the Heat Networks Delivery Unit in rounds 1-14: map (MS Excel Spreadsheet, 29.5 KB)

Heat network guidance

Heat networks: guidance for developers and supply chain

Related publications and tools

Template financial model

Evaluation of the Heat Networks Delivery Unit: Part 2 published April 2018

The future of heating: meeting the challenge, March 2013

See the overview of government support for heat networks.