Gemserv is delighted to announce that £13.9 million has been awarded to local authorities, housing associations and private sector applicants in the first Heat Network Efficiency Scheme (HNES) funding round. As a testament to the Government’s commitment to heat network infrastructure across Britain, Gemserv can today confirm that £13.9 million of capital and revenue grant funding has been awarded to improve the efficiency of existing district and communal heat networks. This equates to 45% of the total budget allocated to the scheme and will seek to improve heat networks serving over 11,000 residents, demonstrating its popularity and the demand for support. Heat networks present a vital technology that can deliver efficient, lower cost heating, cooling and hot water to the UK’s built environment at scale. HNES aims to improve heat network performance in existing/operational projects where customers and/or operators are experiencing sub-optimal outcomes. With a focus on reducing customer detriment, HNES supports heat network consumers impacted by the cost-of-living crisis by enhancing efficiency and combating poorly performing networks. Today’s announcement shows the positive engagement from heat network owners and operators across the country as they seek to embrace the technology, ensure customers are getting the best value for money and that networks are operating efficiently. The first three funding rounds have proven incredibly popular, and we anticipate that future rounds will be very competitive. Lord Callanan, Minister for Energy Efficiency and Green Finance, welcomed the announcement today: “Families and businesses shouldn’t have to worry about whether they will receive a reliable heating and hot water supply. This funding means improvements will be made to old and inefficient heat networks, preventing further breakdowns, and ensuring they use less energy. We’re investing millions to build new heat networks, reducing emissions, and providing low-cost heating to communities across the country. But it’s equally important we upgrade and maintain existing systems so everyone benefits. Heat networks offer carbon emissions savings by supplying heat to buildings from a central source, avoiding the need for households and workplaces to rely on individual, energy-intensive heating solutions – such as gas boilers. As such, heat networks provide a significant contribution to the UK’s carbon reduction commitment. But some heat networks haven’t been upgraded since they were installed more than 40 years ago, meaning many are inefficient due to not being installed properly, poorly maintained or the equipment wearing out. The Heat Network Efficiency Scheme (HNES), which opened in February this year, forms an important part of the government’s support for heat networks. This also includes the £288m Green Heat Network Fund, which supports the creation of heat network projects that use a low carbon heating source, such as a heat pump, solar or geothermal energy, to provide heat and hot water to connected homes and businesses.” Commenting on first funding announcement from the HNES scheme, Louise Singleton, Principal Consultant at Gemserv said: “Today’s announcement shows the substantial impact that HNES will have on the efficiency of heat networks across the country. Funding from the scheme today will play a huge part in improving the efficiency and lowering the costs of domestic heating for thousands of residents and businesses. Over £13 million awarded will ensure existing heat network infrastructure is fit for the future, ensuring the technology can provide the most efficient, economical heating for consumers, and preparing them for greater expansion to new and existing homes.” Capital Grant Funding Capital grant funding will go directly towards covering the cost of operational works to improve the efficiency of existing heat networks. In this round, nearly £13 million will directly improve the efficiencies of heat networks serving over 4,000 residents. Housing Associations and Social Housing Providers Notting Hill Genesis Notting Hill Genesis, one of the largest housing associations in London and the South East, has been awarded over £3.6 million for improving the efficiency of heat networks that serve over 800 residents. Building on optimisation studies funded through the HNES Demonstrator, the Glyn Street, Windmill Park, St Pancras Way and Factory Quarter Estate projects will use their capital funding to replace HIUs and pipework, install more efficient control systems and insulation, and for other general efficiency improvements. Southern Housing Southern Housing, one of the largest housing providers in the UK with more than 78,000 homes across London, the South East, the Isle of Wight and the Midlands has been awarded over £176,000 to improve a heat network serving homes on Dagenham Heathway & Church Elm Lane Dagenham, Essex. Additional insulation, new HIUs and other improvements will be installed using funding from HNES which will create a more efficient heat network and as a result a reduction in resident bills and the buildings carbon footprint. Great Places Housing Association Great Places Housing Association,with 25,000 homes across the North West, South Yorkshire and Derbyshire, has been awarded over £1.6 million to improve the efficiency of its Richmond Park heat network, serving 299 residents across the development. Drawing on the recommendations from their HNES Demonstrator funded optimisation study, capital funding will seek to remedy high heat loss issues, bad insulation and old equipment. The Guinness Partnership The Guinness Partnership, with over 140,000 customers across the country, has been awarded £2 million for the improvement of four heat networks serving almost 700 residents. Taking learnings from HNES Demonstrator funded optimisation studies at Whitfield Street and Loughborough Park, these heat networks alongside Bearbrook Place and Edgeley will utilise funding to reduce heat network costs and heat losses, improve insulation and replace outdated infrastructure. Local Authorities Leeds City Council Leeds City Council has been awarded over £2.2 million to improve the efficiency of heat networks serving 837 residents across the borough. Using the recommendations from their HNES Demonstrator funded optimisation studies, Cottingley Heights & Towers, Ebor Gardens and Saxton Gardens will use HNES capital funding from the first round to improve their heat networks’ efficiency through improving insulation levels, reducing heat losses and leakages and for additional improvements. The London Borough of Hackney The London Borough of Hackney will receive over £114,000 to improve the