£3.5m awarded to projects in Round 4 of Heat Network Efficiency Scheme

Andrew Gaved Editor at Large
22.02.2024

A total of £3.5 million is being awarded to 20 local authorities, housing associations, NHS trusts, universities and private sector organisations under the latest round of the Heat Network Efficiency Scheme.

The scheme says the funding aims to improve the performance of heat networks, so they provide better services to their customers, increased efficiency and reduced energy costs.

The funding will be shared among 25 heat networks across England and Wales serving 5,700 occupants. The Round 4 funding brings the total funding awarded under HNES to over £28 million, as the scheme celebrates its one-year anniversary this month.

The Scheme also notes that the project improvements will result in annual carbon savings of over 422 tCO2e per year over the next 40 years;

HNES is an integral part of the Government’s broader Heat Network Transformation Programme (HNTP), focusing on developing new heat networks and improving existing ones.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said:

Customers living on heat networks need to get the regular, reliable heating and hot water they are entitled to. This important funding will help upgrade inefficient systems, preventing breakdowns and using less energy, while allowing customers to reduce their energy bills and keep their homes warm. It’s part of our plan to ensure every home in the country can cut their energy use and save money on their bills.

 Louise Singleton, Principal Consultant at Gemserv, added:

 We’re pleased to announce the success of Round 4, with a significant funding allocation of £3.5 million, just as we celebrate the scheme’s one year anniversary. The diverse range of projects funded in this round is something we are particularly proud of, with the funding set to deliver heightened heat network efficiency for residents in social housing, those within the NHS and students at universities across England and Wales.Funding delivered under HNES plays a crucial role in supporting the transformation of older heat networks into resilient, low carbon heating solutions, strategically preparing for upcoming sector regulations in 2025.

The projects that received Round 4 capital grant funding, going directly towards covering the cost of operational works to improve the efficiency of existing heat networks include:

Housing Associations and Social Housing Providers:

Bow Cross Estate

Swan Housing Association has been awarded £686,296 for improvements works on the Bow Cross Estate heat network. This funding will be matched with significant additional investment by Swan Housing Association. It will support upgrading the primary heat network pipework and the distribution pumps and control systems at the energy centre. Taken together, these works will mitigate heat losses, enhance network efficiency, and improve overall system resilience, benefiting residents.

Local Authorities:

Philpot Square Heat Network

The London Borough of Hammersmith and Fulham has been awarded £754,609 for the Philpot Square heat network. The project involves a full upgrade of the network covering the plant room, distribution systems and apartments. New inverter driven pumps, a pressurisation and expansion system, a plant room buffer vessel, new distribution pipework with improved insulation, Heat Interface Units and Thermostatic Radiator Valves will be installed. This will eliminate service interruptions, improve efficiency levels and allow residents to be billed based on usage rather than a fixed fee.

Spedan Close Heat Network

The London Borough of Camden has been awarded £659,641 for the Spedan Close Heat Network. The project involves a complete upgrade of the whole network to address extremely high numbers of service interruptions. Work will cover the plant room, distribution systems and dwellings, including the installation of inverter driven pumps, distribution pipework with improved insulation, Heat Interface Units and Thermostatic Radiator Valves. This will improve efficiency levels and ensure residents only pay for the heat they use.

Private Sector:

Greenwich Millennium Village

Switch2 has been awarded £773,178 for the Greenwich Millennium Village (West) heat network to install 435 new Heat Interface Units, as well as to upgrade insulation on part of the primary network and replace automatic air release valves. This will reduce unplanned outages, improve network performance as well as reduce maintenance costs.

First Central

First Central Heating Company Limited has been awarded £192,562 for the First Central heat network. Funding will support the introduction of an improved control strategy across the network, replacement of the degasser and pressurisation systems and distribution pumps. It is expected that these works will improve system reliability, reduce heat losses and significantly reduce carbon emissions.