Support, guidance, and grant funding for local authorities developing heat networks in England and Wales.
Funding
Round 14 is now closed. Due to the high demand for HNDU funding and number of applications already received, Round 14 was closed to applicants early on 30 September 2024 (from the original date of 31 October 2024).
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 that 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.
The latest Round 14 was available to the following eligible applicants:
- 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.
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 £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
Local authorities and other eligible organisations apply for HNDU support through bidding rounds. All bids are reviewed by HNDU assessors before final recommendations are approved by a panel of financial, commercial and policy specialists.
Grant funding is provided to successful local authorities under Section 31 of the Local Government Act and other applicants under Section 98 of the National Environment and Rural Communities Act 2006. Eligible costs are defined as externally commissioned consultancy costs for heat network development work. HNDU funding can support 100% of eligible costs, including for project management, which is only available for public sector applicants and registered social landlords.
If successful, each local authority is supported by a team of specialists within HNDU. Other applicant organisations will receive HNDU specialist support to the extent it is assessed necessary by either the applicant or HNDU and sufficient resource is available.