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Green Heat Network Fund

The Green Heat Network Fund (GHNF) is a multi-million capital grant fund that will support the commercialisation and construction of new low and zero carbon (LZC) heat networks (including the supply of cooling) and the retrofitting and expansion of existing heat networks. It aims to develop and grow the heat network market and to address some of the challenges of decarbonising the UK’s heat sector.

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Summary

The Green Heat Network Fund (GHNF) is a £288m capital grant fund that opened to applicants in the spring of 2022. It provides support to organisations in the public, private, and third sectors, offering commercialisation and construction funding for heat network projects in England. It builds on the progress and development made by the Heat Network Investment Project (HNIP) and the GHNF Transition Scheme.

Our vision for the GHNF is to accelerate the heat network market transition to low-carbon heat sources via targeted financial support, that will help stimulate the increased deployment of low-carbon technologies at scale. The GHNF objectives are to:

  • Achieve carbon savings and decreases in carbon intensity of heat supplied.

  • Increase the total amount of low carbon heat utilisation in heat networks (both retrofitted and new heat networks).

  • Contribute towards market transformations across the investment landscape and supply chain that will better prepare the heat network sector for further decarbonisation.

It is important to note that the GHNF is a competitive grant scheme, and most projects are expected to significantly out-perform the absolute scheme limits set out in the applicant guidance to score well in competition.

GHNF offers grant funding only, either for

  • both commercialisation and construction support or

  • construction support only.

Funding rounds are intended to take place on a quarterly basis with notification letters to be issued as soon as practicable following the Investment Committee and subject to all relevant approvals being received.

Eligibility

The GHNF is open to all organisations responsible for the development of heat networks (including cooling networks) that meet the application gated metrics, that can provide all supporting documentation and which are legal entities. For the avoidance of doubt, this includes Other Government Departments.

Applicants may be:

  • Public sector organisations including NHS Trusts and Universities, and Other Government Departments.

  • Private sector organisations that are registered companies and submit annual accounts.

  • Third sector organisations such as registered charities, community investment companies and other such organisations that are officially registered and submit annual accounts.

  • Individuals, households and sole traders cannot apply to the fund.

Even if an applicant meets all the eligibility criteria and scores well, it is not guaranteed an award of funding. GHNF funding will be allocated on a competitive and discretionary basis. The Investment Committee will consider those applications submitted in each funding round where the applicant meets the eligibility criteria. The scores awarded to the applications by GHNF assessors will be compared. The applications will then be ranked. Some may not be awarded funding because their ranking is lower relative to others.

Applicants that are successful will be notified accordingly. Applicants that are unsuccessful will be notified, together with an explanation of why.

For a detailed description of eligibility and assessment criteria, see the latest Applicant Guidance document on the GHNF gov.uk page. Potential applicants that are unsure whether their projects meet the GHNF eligibility criteria should contact enquiries@tp-heatnetworks.org.

Objectives

The Green Heat Network Fund (GHNF) is a capital grant fund that supports:

  • the commercialisation and construction of new low and zero carbon (LZC) heat networks (including the supply of cooling)

  • the retrofitting and expansion of existing heat networks

It aims to develop and grow the heat network market and to address some of the challenges of decarbonising the UK’s heat sector.

Dates

The GHNF is a three-year scheme that opened to applications in March 2022. A detailed application timeframe is available in GHNF Application Guidance here: https://www.gov.uk/government/publications/green-heat-network-fund-ghnf

How to apply

Detailed guidance for applicants can be found by following the URL to the Green Heat Network Fund gov.uk page.

Applicants are able to register an Expression of Interest via webform ahead of submitting applications for funding at https://tp-heatnetworks.org/expression-of-interest/ (this voluntary and pre-requisite for applying).

Applicants can request an application pack and a meeting with a Relationship Manager to discuss their application by emailing enquiries@tp-heatnetworks.org.

Supporting information

See “How to apply” to find out how to register an Expression of Interest or request an application pack.

All supporting information and guidance can be found on the Green Heat Network Fund gov.uk page.