Who can Apply?
HNES is open to applicants that are responsible for operating or managing existing district heat networks or communal heating systems in England and Wales. This includes:
- Public sector organisations including Local Authorities, NHS Trusts, Universities and Other Government Departments.
- Private sector organisations that are registered companies and submit annual accounts.
- Third sector organisations such as Housing Associations, registered charities, and other such organisations that are officially registered and submit annual accounts.
Successful applicants will be the recipients of grant funding and will be responsible for ensuring that grant funds are deployed in accordance with funding award, i.e. procuring or mobilising third parties to deliver the funded activities.
Applicants must be legal entities, with authority to sign-off investment decisions for the heat network they are responsible for and instruct delivery of funded works. Individuals cannot apply to HNES.
What will HNES fund?
HNES will support existing/operational district heating or communal heating networks that through HNES capital funding will address customer detriment and improve operational performance, or through HNES revenue funding will identify improvement measures for addressing customer detriment and improving operational performance.
All funded projects will support delivery against HNES objectives. Applicants must demonstrate how their project aligns with the objectives as part of their application. You can view these objectives on our about HNES webpage.
Applicants can apply to HNES for either revenue grant funding or capital grant funding.
Revenue Grants
For identifying improvement measures to address customer detriment and improve operational performance.
Funding is available for procurement or mobilisation of external third-party support to carry out Optimisation Studies. These studies will assess heat network projects to identify causes of sub-optimal performance and recommend costed intervention or improvement measures.
- HNES budget up to £2m across FY23/24 and FY24/25, plus further funding in FY25/26 and FY26/27 subject to budget availability.
- HNES will fund up to 100% of the estimated eligible external costs of heat network Optimisation Studies.
Capital Grants
To help implement improvement measures which address customer detriment and improve operational performance.
- HNES budget up to £105m across FY23/24 to FY29/30 subject to budget availability.
- Part-funding available for the delivery (installation) of eligible intervention/improvement measures.
- Applicants can apply for up to, but not including, 50% of the total estimated eligible costs.