Heat Network Efficiency Scheme demonstrator announces first funding awards

Funding has been awarded to 39 capital funded projects via the HNES

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The Heat Network Efficiency Scheme (HNES) Demonstrator has proven very popular since it opened for applications in October 2021 as part of the government’s plans to support performance uplifts to existing heat network and communal heating schemes.

All 39 projects have successfully been awarded funding despite the scheme being significantly oversubscribed.

The diverse range of projects can now further progress their ambitions to drive short-term and sustained efficiency savings in fuel consumption and carbon emissions by implementing and installing low carbon technologies.

The HNES Demonstrator seeks to build the capital funding pipeline for a future multi-year HNES scheme which BEIS intends to provide from April 2023 to March 2025, subject to further funding. This will help to further support performance uplifts to heat network or communal heating projects in support of ambitions for a net zero economy.

Heat networks have been identified by the government as essential to delivering clean and cost-effective decarbonisation on the road to net zero and have the potential to deliver around a fifth of low carbon heat demand by 2050. HNES forms a key part of plans to develop and grow the market and address some of the challenges related to heat decarbonisation.

Dr. David Hiller, HNES Project Director said: “I am extremely pleased to announce that all 39 capital projects have been funded. There is clearly an appetite amongst industry to improve heat networks or communal heating to help contribute to the net zero target by 2050.

Gemserv is proud to be delivering the scheme, and we are delighted that BEIS have secured funding for all of the capital projects that applied.”