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Local authorities have a key role to play in making heat networks succeed. Their involvement, particularly in the development stages, can help realise the benefits of heat networks, while also delivering jobs and growth. In order to address the capacity and capability challenges which local authorities identified as barriers to heat network deployment in the UK, the government set up the Heat Networks Delivery Unit (HNDU) in 2013.

The Heat Networks Delivery Unit provides grant funding and guidance to local authorities in England and Wales for heat network project development.

Since its inception, HNDU has run 14 funding rounds, awarding 拢39.7 million in total. Over 300 unique projects have so far been supported across 188 local authorities.

Round 15 is available to following eligible applicants:

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

HNDU funding support will continue to be available in advance of heat network zoning legislation coming in to force. This funding will help support areas to continue the development of their projects in readiness for heat network zoning.

See the overview of government support for heat networks.

Scope

The Heat Networks Delivery Unit provides support to local authorities in England and Wales through the early 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 construction, operation and maintenance of a heat network. The Green Heat Network Fund (GHNF) can however support these activities as it is a commercialisation and capital grant programme that opened to applicants in March 2022. Initially a 拢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 drawn down in financial years 2024/2025 through to 2027/2028.

The process

DESNZ is inviting applications for direct project funding support for eligible Heat Network (HN) and Heat Network Zoning (HNZ) related project activities via a 2-stage application process:

• stage 1 鈥� will involve the submission of a short expression of interest (EOI)
• stage 2 鈥� will involve the submission of supporting evidence and/or a discussion with DESNZ for assessment (by invitation only)

Projects will be assessed by the HNDU based on their merits and alignment with Departmental objectives with regards to heat networks.

As per previous rounds, this will prioritise support to projects that can demonstrate the scale of the opportunity, the local capacity & commitment, the economic viability and carbon savings. Furthermore, we will also consider projects that are of strategic importance and, for Round 15, applicants should demonstrate why funding is required in this financial year (2025/26) to help us prioritise awards if we oversubscribed.

Support for successful projects will be provided by DESNZ, which will directly fund and appoint qualified consultants from its own framework according to a defined scope, budget, and timeframe agreed with the applicant.

Round 15

For more information on this or previous funding rounds, please see relevant documents on this page below or email hndu@energysecurity.gov.uk. To request an application form, please email hndu@energysecurity.gov.uk.

HNDU Pipeline

We publish a quarterly HNDU project pipeline with accompanying spreadsheet summary.

Local authorities supported by HNDU

(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