Further £3 million awarded to heat networks in England and Wales

More than £3 million has been allocated towards the improvement of existing heat networks in England and Wales in the fifth round of the Heat Network Efficiency Scheme (HNES).

Pair of hands holding a pen and signing a contract.

A total of 24 organisations will receive support, totalling £3.2 million, to improve the efficiency of 33 heat networks, benefiting 8,492 residents and other private and public sector organisations.

The funding in this round brings the total awarded by HNES to over £30 million.

An additional 6,500 residents, hospitals, universities, and public sector institutions are set to benefit from optimisation studies in Round 5. These studies will unlock additional areas for improvement that reduce energy bills, reduce energy consumption, and minimise customer detriment. 

An optimisation study for a heat network serving the Ministry of Defence is included in this funding round and will identify areas whereby Wellington Barracks can improve its efficiency levels. The study demonstrates how the British Army is actively looking at ways to reduce its carbon footprint and is an example of how HNES exists to improve heat networks across diverse sectors.

By supporting 33 heat networks, emissions savings from this round are expected to be equivalent to taking 938 diesel cars off the road each year.

The important role of heat networks

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: “From Lancaster University to the British Army’s Wellington Barracks, heat networks are playing an important role in reducing energy use and cutting the UK’s emissions. 

“It’s fantastic that over 8,000 residents will now see improvements to their heating and hot water supply thanks to support from our Heat Network Efficiency Scheme, with over £30 million now awarded.”

Louise Singleton, Principal Consultant at Gemserv, said: “As of today, HNES has awarded over £30 million to existing heat networks in England and Wales to optimise their efficiency levels so they’re fit for decades to come. Not only this, but today’s announcement is the first to show how HNES funded revenue studies can then lead to tangible improvements funded through capital applications.

“Optimisation studies, unlocked by revenue grant funding, are crucial to help identify and inform heat network operators of the opportunities that exist to improve a heat network’s efficiency levels. We are delighted to be supporting projects all the way through from study to implementation.”

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, over £2.7 million will directly improve the efficiencies of heat networks serving 1,966 residents.

The full list of successful applicants in Round 5 is as follows: 

Isleden House

The City of London Corporation has been awarded £466,033 for improvements to the Isleden House communal heating system. Benefitting 77 homes, funding will go towards increasing insulation levels across the distribution system, upgrading the system controls, installing a monitoring system, and upgrading the water treatment.

Gospel Oak Royal Free Hospital (RFH) Waste Connection

The London Borough of Camden has been awarded £202,950 for the Gospel Oak RFH Waste Connection network. The scheme delivers waste heat from the hospital to Camden’s communal boiler houses serving 1,244 properties. Benefitting residents connected to the scheme, funding from HNES will go towards restoring waste heat to the heat network.

Holmleigh Court

Wandsworth Council has been awarded £343,640 for the Holmleigh Court heat network. Benefitting 39 residents, funding will go towards improving reliability across the network and installing a new Building Management System (BMS) to strengthen the ability to monitor and control the network. New pipework, HIUs, insulation and other infrastructure improvements will also be installed with the help of HNES funding.

Glamis Estate

East End Homes Limited has been awarded £918,580 for the Glamis Estate East – Elf Row, Glamis and Roslin heat networks. Funding will go towards upgrading the old and inefficient heat network, replacing pipework, customer controls in each dwelling and in the main plant room, whilst improving insulation across the network. This will benefit 265 dwellings.


Southern Housing has been awarded £203,632 for the Vega heat network in Brighton & Hove. Benefitting 40 residents, funding will go towards installing HIUs, new pipework, reviewing plant room controls and upgrading insulation across the network to improve efficiency levels.

Lancaster Campus District Heat Network

Lancaster University has been awarded £560,387 for the Lancaster Campus District Heat Network. Funding will go towards upgrading infrastructure across the network and to get it ‘heat pump ready’. The project therefore includes the installation of more efficient pumps and meters, improving the central building management system, enhancing insulation throughout the network.

The Williams Building

21-39 (Odd) Addenbrooke’s Road Freehold Limited has been awarded £52,409 for The Williams Building heat network. This project is the first main scheme capital project to be awarded funding for implementing improvements recommended by a previous optimisation study funded in Round 1.

HNES will support the repairing and recommissioning of infrastructure across the network including pumps and the overall control system. HIUs will also be recommissioned, whilst new bulk meters and insulation will be installed. This will help to improve reliability and overall control over the heat network for 10 residents.

Seager Place

Freshplant Limited has been awarded £29,383 for the Seager Place heat network. Benefitting 267 residents, funding from HNES will go towards replacing control valves and sensors in order to reduce bills for residents and enhance network flow controls.   

Revenue Grant Funding

In addition to capital grant funding, projects in Round 5 have also been awarded over £443,000 of revenue grant funding to undertake optimisation studies to review the performance of their heat networks and identify areas for improvement.

The full list of successful Round 5 applicants is as follows:

Incommunities Limited, for the Ruth House and Rossett & Underwood House heat networks.

Vivid Housing Limited, for the William Hitchcock House and Wickham Court heat networks.

Coventry City Council, for the One Friargate and Council House heat networks.

London Borough of Camden, for the Netley heat network.

Invicta Rentals Limited, for the Orchard Park – Holbeach House heat network.

Radius RTM Company Limited, for the Radius Development heat network.

RMB 102 Limited, for the Gooch House and Park Central heat networks.

LTR (Victoria Point) Limited, for the Victoria Point heat network.

Medway NHS Foundation Trust, for the Medway NHS Foundation Trust heat network.

Royal United Hospitals Bath NHS Foundation Trust, for the RUH District Heating Network.

University of East Anglia, for the UEA heat network.

University of Warwick, for the 20km University of Warwick heat network.

A2Dominion Housing Group Limited, for the Barrington Court heat network.

The British Army, for the Wellington Barracks heat network.

Cambridge Cohousing Ltd, for the Common House and Apartment Block heat network.

Further funding is available under Round 7 of the scheme. The deadline for applications is July 26, 2024. Details can be found by visiting the HNES link above.

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