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Heat networks across England and Wales receive a share of over £8 million for modernisations and improvements

25th Jan, 2024

Funding from Round 3 of the Heat Network Efficiency Scheme (HNES) is being awarded to a wide range of organisations including social housing providers, local authorities, health, education and private sector companies.

This latest announcement of £8.1 million brings the total awarded so far under HNES, which is funded by the Department for Energy Security and Net Zero, to £25 million. 34 heat networks will benefit, helping to increase their operating efficiencies and improve the heating experience of over 9,000 residents, hospital patients, students and public sector workers.

The capital grant funding provided will result in annual carbon savings of over 89,000 tCO₂e per year over the next 40 years. Simultaneously, the revenue grant funding secured will facilitate optimisation studies, unlocking opportunities to identify additional carbon savings in the years to come.

Lord Callanan, Minister for Energy Efficiency and Green Finance, has welcomed today’s HNES funding announcement:

Everyone – from families and hospital patients to students and public sector workers – should be able to receive a reliable heating and hot water supply.

The UK is a world leader when it comes to cutting carbon emissions and while we are committed to funding new, greener heat networks, we also need to update our inefficient systems so everyone can enjoy the benefits and this funding is aimed at doing exactly that.

Louise Singleton, Principal Consultant at Gemserv and HNES Programme Manager, added:

We are delighted to know that funding from HNES is translating into real-world benefits. Round 3 grants will help to unlock tangible cost reductions and higher heating efficiency for 9,000 residents, as well as hospitals and university students.
Revenue funds also presents a huge opportunity to unlock benefits for countless more heat network customers across England and Wales. We are excited to start working with our funded projects to facilitate the use of low cost, energy efficient heating and support the UK’s journey on the pathway to Net Zero.

Below is a summary of the projects which have successfully secured HNES funding in Round 3.

Capital Grant Funding

Capital grant funding will go directly towards covering the cost of operational works to improve the efficiency of existing heat networks. In this round, over £7.6 million will improve heat networks serving over 5,000 residents.

Housing Associations and Social Housing Providers

Consort Road (aka Sarawak Court)
Notting Hill Genesis has been awarded £725,661 for the Consort Road heat network. Funding provided will unlock a full system replacement including a new energy centre, pipework and control units. 49 residents will benefit from planned improvements.

Duffryn District Heating System
Newport City Homes Housing Association Limited has been awarded £3,715,972 for the Duffryn District Heating System. Funding will go towards replacing over 3km of pipework across the network, whilst also upgrading control systems and insulation. This work will improve the performance of the network for over 970 homes, local schools, and businesses.

Cottesmore House
The Guinness Partnership has been awarded £461,435 for the Cottesmore House heat network. Funding will change the network from a 4-pipe system to a 2-pipe system to help reduce heat losses and energy consumption. 48 residents will benefit from network improvements.

Private Sector

The Banks
Seascape Management Limited has been awarded £36,548 for The Banks heat network. Funding will go towards replacing existing network equipment to help modernise the network, including pumps and insulation measures, bringing the network’s infrastructure up to current standards. Improvements will benefit 74 residents.

E.ON UK has been awarded £1,562,274 for the Cranbrook heat network. Funding provided will enable the retrofitting of Heat Interface Units in residents’ homes to provide better reliability and more efficient units, as well as reduced heat losses. Efficiency improvements will be carried out in the early phases of Cranbrook but will benefit over 3,000 residents across the network.

One Brighton
One Brighton Energy Services Ltd has been awarded £54,484 for the One Brighton heat network. This is the second phase of the improvement works, after having received HNES Demonstrator funding in 2022. This project will reinsulate secondary pipework and valves across the network to increase efficiency levels and reduce heat losses. Improvements across the network will benefit hundreds of residents and a large community building.

Vattenfall’s Redcliffe Heat Network
Bristol Heat Networks Limited has been awarded £746,582 for the Redcliffe Heat Network, owned and operated by Vattenfall. Funding will help replace the pipework across the primary network. 740 residents will benefit from these network improvements.

Health and Education Organisations

University of Plymouth, Portland Square
The University of Plymouth has been awarded £243,280 to upgrade to a sustainable heating system in the Portland Square area of its campus. The funding supports the University’s decarbonisation plan, by improving the efficiency of the network to allow fossil fuel-powered appliances to be replaced with heat pumps and electric boilers in the future.

Revenue Grant Funding

Projects across England and Wales in Round 3 have also been awarded over £486,000 of revenue grant funding to undertake optimisation studies to review the performance of their heat networks and identify areas for improvement.

The following organisations have been awarded revenue grant funding for optimisation studies:

Housing Associations and Social Housing Providers

Notting Hill Genesis, for the Baths Court heat network to investigate high gas usage and suggest ways to reduce outages and overheating.

The Hyde Group, for the Packington heat network.

Connect Housing Association Limited, for the Ancion Court, Hawthorn Mill, and Nowell Court heat networks to review efficiency levels and address overheating issues.

Worthing Homes Limited, for the Caxton Court and Davenport Court heat networks to review efficiency levels.

Wakefield and District Housing, for the Smirthwaite, Park Dale and Monument Mews heat networks to review efficiency levels and assess flow temperatures throughout the year.

SNG (Sovereign Network Group), for the Biko House and Atrium Point heat networks to address overheating issues, leaks and heating interruptions, and reduce costs for consumers.

Local Authorities

Waltham Forest Council, for the Aldriche Way Estate heat network, to investigate efficiency levels and high costs.

Birmingham City Council, for the Canterbury Tower and Adelaide Tower heat networks to review efficiency levels.

Stockport Metropolitan Borough Council, for the Mottram Street heat network to review efficiency levels and address lack of heating controls in dwellings.


Guildhall Feoffment Trust, for College Square heat network to review efficiency levels.

Health and Education Organisations

University Hospitals of Morecambe Bay NHS Foundation Trust, for the Royal Lancaster Infirmary, Furness General Hospital and Westmoreland

General Hospital heat networks to review efficiency levels and address data gaps, with a view to future decarbonisation of the networks.

Hywel DDA University Health Board, for the Prince Philip Hospital heat network to investigate high gas usage and over and under heating.

Private Sector

Gateshead Energy Company, for the Gateshead District Energy Scheme to review efficiency levels, as well as improve system operation and controls following new heat sources and connections being added.

Michael Laurie Magar Ltd, for the Silkworks & Silvermill heat network to suggest ways to address network outages and to improve the overall efficiency of the system.

Switch2, for the Royal Arsenal and Royal Arsenal Riverside heat networks to review efficiency levels.