In an era of energy efficiency and decarbonisation, heat networks offer a promising solution for the UK’s net zero aspirations.
Heat networks, also known as district heating, supply heat from a central source to consumers via a network of underground pipes carrying hot water – avoiding the need for individual boilers or electric heaters in every building.
They can efficiently tap into wasted energy, balance grid demands, and deliver low-carbon heat at competitive prices to homes and businesses. However, realising their benefits requires expanding their presence across the country, alongside ensuring their optimal performance.
Unfortunately, some customers have faced sub-par outcomes in terms of price and service, highlighting the need for operational excellence.
This issue is particularly critical with the energy crisis and rising costs, as inefficient networks pass on increasing fuel costs to consumers.
Hackney Council rectified a poorly performing heat network by leveraging funding from the Government’s Heat Network Efficiency Scheme (HNES).
The council conducted optimisation studies to understand its networks’ efficiency and performance, which will lead to decarbonisation, cost recovery, reduced administrative burdens, and shared learnings across its heat network portfolio.
Through data gathering and site visits, in collaboration with an expert commercial partner, Hackney Council identified 18 efficiency measures that could make a real difference. If implemented, these could save £3,000 annually in energy costs and reduce carbon emissions by 676 tonnes over 20 years.
HNES funding enabled a comprehensive health check on the council’s heat networks, providing a thorough understanding of what could be done, without significant capital investment.
Since February 2023, HNES has provided grant support to enhance heat network performance and mitigate customer detriment.
The scheme offers up to 50 per cent of eligible project costs for capital grants and up to 100 per cent for revenue grants to fund optimisation studies.
Leveraging this opportunity allows eligible projects to optimise heat networks, reduce costs, and contribute to a greener, more efficient UK heating infrastructure.
Gemserv is the Government’s appointed delivery partner for the Heat Network Efficiency Scheme. To express an interest in the scheme, please email [email protected]