Major investment to support heat network upgrades in 63 projects

The Heat Network Efficiency Scheme (HNES) has allocated over £19.5 million to fund improvements in 63 heat networks across England and Wales, marking the largest funding round since the scheme’s inception in 2023. This funding aims to enhance heating efficiency, reliability, and affordability for nearly 8,000 residents, including those in low-income households, educational institutions and NHS facilities.

The recent investment is expected to significantly reduce carbon emissions associated with space heating, equivalent to the emissions produced by 829 one-way flights from London to New York each year. This round of funding will enable capital works to directly improve existing heat networks, with 22 projects receiving a total of £18.5 million, benefiting 5,111 residents.

Notable projects include the Baths Court heat network, which has received over £534,000 to address issues such as high energy consumption and frequent heating outages. This funding will enhance heating and hot water reliability for 32 residents.

Local councils are set to receive significant funding for various projects. Wolverhampton City Council will receive £8 million to improve heating for over 1,000 residents at the Heath Town estate. The London Borough of Camden is set to receive £278,000 to upgrade a 50-year-old heat network in Belsize Court, which has been operating at suboptimal levels and currently provides tenants with lukewarm water. Portsmouth City Council will receive £4.5 million for enhancements to the Charles Dickens heat network, serving over 500 residents.

Housing associations will also benefit from the funding. Solihull Community Housing is set to receive £1.6 million for improvements across three heat networks serving eight high-rise buildings. This funding will support modifications, repairs, and the installation of more efficient systems for 570 residents.

Private sector companies are also involved, with New Islington Utilities receiving over £1 million for efficiency upgrades to residential heat networks in Manchester and Bristol. These projects aim to enhance overall network performance based on previous optimisation studies.

The HNES has already helped over 51,000 residents and is projected to save 200,000 tonnes of carbon emissions over the next four decades, showcasing its potential for significant environmental and community benefits.

Louise Singleton, HNES programme manager at Gemserv, says:

“Round 7 marks the largest funding package awarded since the introduction of the scheme in 2023. 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. As 2025 begins, we are looking forward to another year of improving outcomes for customers and operators.”