BEIS seeks delivery partner for £350 million heat network support scheme

The Department for Business, Energy and Industrial Strategy (BEIS) will open a tender next week for a ‘delivery partner’ to manage a new heat networks support scheme opening in the autumn and leverage third party funding into projects. The invitation to tender will be published on the OJEU Delta procurement portal in week commencing 16 April and the contract awarded in July.

The previously announced scheme is due to open for applications in August.  It will have £350 million in grant (up to £5 million) and loan funding (£10,000 – £10 million) available for ‘strategic, optimised, low carbon district heating projects’. That includes developing new heat networks, expanding existing projects or funding commercialisation and construction.

Applicants can be in the public, private and third sector. Central government departments and excluded and the funds cannot be used for energy generation plant supported through the Renewables Obligation , a Contract for Difference or the Renewable Heat Incentive. However, the scheme can be used to fund costs for heat network infrastructure connected to the generation plant.

BEIS has also invited potential applicants to register expressions of interest ahead of the scheme’s launch: contact heatnetworks@beis.gov.uk 

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