The Government's Heat Network Efficiency Scheme (HNES) supports performance improvements.
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.
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.
Our team of relationship managers are available to help guide you through the process. If you are considering applying for funding, please contact HNES with an overview of your scheme and an indication of which funding round you aim to submit an application.
We recommend attending an application seminar and requesting a meeting with our relationship managers to discuss your application before preparing your submission.
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.
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