The Heat Network Efficiency Scheme (HNES) Demonstrator, delivered by Gemserv and supported by Ramboll, opened for applications by the Department for Business, Energy and Industrial Strategy (BEIS) in October 2021. It has proven very popular and was significantly oversubscribed with more applications than expected, demonstrating a high demand for this policy intervention, both for capital and revenue funded projects.
The scheme provides funding to support performance uplifts to existing heat network or communal heating projects. These projects will seek, through the funding available, to drive short-term and sustained efficiency savings in fuel consumption and carbon emissions to help meet the UK’s net zero target, and address areas of customer detriment.
The HNES Demonstrator will help to build the capital funding pipeline for a future multi-year HNES Main Scheme which BEIS intends to provide over the years 2022/2023, subject to further funding.
Through a competitive process, BEIS will award revenue and capital funding to applicants to support performance uplifts to existing heat networks or communal heating projects. Gemserv, as the Delivery Partner, supported by Ramboll, are currently reviewing applications for the demonstrator fund and it is hoped that successful projects will be announced shortly.
Dr. David Hiller, HNES Project Director commented,
” I am extremely pleased that the scheme has been oversubscribed, it clearly shows there is appetite amongst industry to improve heat networks or communal heating projects which will help contribute to the net zero target by 2050. Gemserv is pleased to be delivering the scheme, and we are delighted that BEIS are committed to funding as many projects as it can.”