Funding Boost For Low Carbon Heating

24 local authorities across England and Wales have been awarded more than £2.1 million to support the development of heat network projects.

Minister for Energy and Climate Change Greg Barker today announced the latest round of successful projects through the Heat Networks Delivery Unit that will provide heating to local homes and businesses through new projects using a range of low carbon technologies, including energy from waste or recovered heat taken from industry.

Each project is designed to provide more efficient heating to buildings which can help to drive down consumers’ heating bills and reduce emissions.

Energy and Climate Change Minister Greg Barker said:

“This is another step the Coalition Government is taking to help drive down the long term cost of energy bills. Heat networks are a defining part of our smarter, cleaner energy future.

“Local authorities are looking at innovative ways to supply low carbon heat to a range of buildings such as multi-storey apartments, office buildings and social housing.”

Since the first round of funding at the end of January 2014, interest from local communities has grown with more than 50 local authorities so far receiving grants ranging from £15,000 to £250,000 each.

As part of the funding, councils will be given commercial and technical support and guidance, including assistance in developing robust business plans to help attract commercial investment to supply heat efficiently and cost-effectively to homes and businesses.

All bids were reviewed by a panel of engineering, financial and commercial experts with significant experience in heat networks development. Bids were assessed against a range of criteria including technical feasibility, commercial viability, future carbon saving and social benefits.

The remaining pot of grant funding, worth £7m in total, will be allocated through subsequent funding rounds, running to March 2015. Round 3 opens on 12 May 2014 and closes on 27 June 2014. The successful third round of local authorities will be announced by in August-September 2014.