Government opens first tranche of £320m district heating fund

The government has opened a new £320m fund to invest in low carbon heat networks.

The first part of the fund, worth up to £39m, will be open to local authorities and public sector bodies who submit applications for their projects by the end of November. The total value of the fund over five years is £320m and in future years this will be opened up to a wider set of applicants.

Minister of state for energy, Baroness Neville-Rolfe said: “Heat networks can significantly improve the efficiency with which heat is provided to our towns and cities, as well as helping to develop local infrastructure and reduce carbon.The new scheme will help us to develop viable reforms to make the most of the heat we produce and use it effectively to bring bills down for people across the country.”

The pre-qualification process for the £39m pilot funding round opens today and runs until 30 November. The first payments will be made by 31 March 2017. Any efficient heating and cooling network in England and Wales – including those that also generate electricity – is eligible for support. Eligible costs include the construction, expansion, refurbishment and interconnection of heat networks, including works to access recoverable heat and upgrade of heating systems inside some existing properties as well as commercialisation phase costs.

More information: Heat Networks Investment Project

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