About the Heat Network Efficiency Scheme (HNES)
The Government’s Heat Network Efficiency Scheme (HNES) is a £32m grant support programme that will open to applicants in February 2023.
It will provide funding to public, private and third sector applicants in England and Wales, to support improvements to existing district heating or communal heating projects for customers and operators. This follows on from the HNES Demonstrator which ran from October 2021 to March 2022.
Gemserv has been appointed Delivery Partner supported by Ramboll, Lux Nova, and Turner and Townsend to deliver the scheme on behalf of the Department for Business Energy and Industrial Strategy.
The aim of the HNES is to improve heat network performance in existing/operational projects where customers and/or operators are experiencing sub-optimal outcomes. In particular, the HNES will focus on addressing customer detriment as a way of supporting heat network consumers impacted by the cost-of-living crisis and the cost-of-energy crisis, with focus on where customer need is greatest.
The HNES objectives are to:
- Reduce carbon emissions by making heat networks more efficient.
- Reduce customer detriment to improve consumer confidence.
- Help prepare the heat network market for sector regulation and technical standards.
Projects can apply to the HNES for either revenue grant funding or capital grant funding.Contact the HNES team to sign up for updates
- Revenue Grants
HNES budget up to £2m across FY23/24 and FY24/25
Grants to fund external third-party support to carry out Optimisation Studies. These studies will assess heat network projects to identify causes of sub-optimal performance and recommend costed intervention or improvement measures.
- Capital Grants
HNES budget up to £30m across FY23/24 and FY24/25
Grants to part-fund the delivery of eligible improvement measures.
How to apply
Contact the HNES team to request the application pack
Read the application guidance for more information on how to prepare your application. The guidance provides information on:
- The application process
- Eligibility criteria
- How applications will be scored and assessed
- The monitoring and reporting obligations for successful applicants
The Heat Network Efficiency Scheme (HNES) is delivered by the Department for Business, Energy & Industrial Strategy. Gemserv has been appointed Delivery Partner supported by Ramboll, Lux Nova, and Turner and Townsend.
Meet the Team
- David Hiller
- Samantha Shea
Head of Policy Insights and Engagement
- Louise Singleton
Principal Consultant – Low Carbon
- Rosie Knight
Senior Low Carbon Consultant
- Sam Hales
Low Carbon Senior Analyst