£14m HNES funding announced to improve efficiency of district and communal heat networks

The first round of the Heat Network Efficiency Scheme (HNES) has awarded nearly £13.9 million in funding to improve the efficiency of existing district and communal heat networks across the UK.

The HNES funding, announced by delivery partner Gemserv, will go to local authorities, housing associations, and private sector applicants operating heat networks serving over 11,000 residents.

The goal of HNES is to enhance the performance of operational heat networks where consumers or operators face suboptimal outcomes. By focusing on efficiency improvements, HNES aims to help heat network customers impacted by the cost-of-living crisis.

Over £13 million in capital grant funding will directly cover upgrading works to boost efficiency for heat networks serving over 4,000 residents. Additionally, over £640,000 in revenue grant funding will support optimisation studies to review and identify areas for performance improvement in heat networks serving over 7,000 residents.

Commenting on first funding announcement from the HNES scheme, Louise Singleton, principal consultant at Gemserv said:

“Funding from the scheme will play a huge part in improving the efficiency and lowering the costs of domestic heating for thousands of residents and businesses. Nearly £14 million awarded will ensure existing heat network infrastructure is fit for the future, ensuring the technology can provide the most efficient, economical heating for consumers, and preparing them for greater expansion to new and existing homes.”