The Heat Network Efficiency Scheme (HNES) is a £107m Government grant support programme that opened to applicants in February 2023.

The scheme provides funding to public, private and third sector applicants in England and Wales, to support improvements to existing district heat network projects or communal heat network projects for customers and operators. This follows on from the HNES Demonstrator which ran from October 2021 to March 2022.

The aim of HNES is to improve heat network performance in existing/operational projects where customers and/or operators are experiencing sub-optimal outcomes. In particular, HNES focuses 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.

Talan has been appointed by the Department of Energy Security and Net Zero as the HNES Delivery Partner, supported by Ramboll, Gleeds and Lux Nova Partners.