30 June 2025
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An impressive £7 million worth of funding has been awarded to 49 district and communal heat networks in England and Wales. The support will result in cleaner, cheaper, and more efficient heating for over 11,300 residents, and for hospitals, charities, universities, and religious buildings.
As the Heat Network Efficiency Scheme (HNES) enters its third year of supporting low-income households and public sector buildings to create more efficient heating systems, Round 8 unveils the latest projects to receive capital or revenue grant funding from the scheme.
Capital projects in this round will result in 48,500 tonnes of carbon savings per year, the equivalent of grounding 420 one-way flights between London and New York each year*. Further carbon saving potential will be made through actioning efficiency improvements recommended in optimisation studies, supported through HNES revenue funding.
The news comes after it was announced that Gemserv, a Talan Company, will continue to deliver HNES for a further four years, ensuring heat networks are at the heart of delivering a more sustainable building stock while updating older infrastructure in the process.
Samantha Shea, Programme Manager for HNES at Gemserv, said: “Improving existing heat network infrastructure is just as important as building new low carbon heat networks as we decarbonise domestic energy consumption.
“HNES is playing a key role in ensuring consumers have confidence in the heat network technology that will provide more sustainable heating to homes and buildings as part of our road to Net Zero. “It is great to see the fruits of another successful funding round, and we are excited to see the outcome of this vital investment in our existing heat network arsenal.”
Capital Grant Funding
Capital grant funding will go directly towards the capital works to improve the efficiency of existing heat networks. In Round 8, 10 projects will receive a share of over £6.1 million worth of support, benefitting 1,945 residents who will receive more reliable and efficient heating.
Organisations receiving capital grant funding:
Health and Education Northern
- Lincolnshire and Goole NHS Foundation Trust:The Diana, Princess of Wales Hospital heat network will benefit from over £190,000 worth of HNES support to improve its heat network which serves the hospital site. The support will go towards upgrading ageing network infrastructure, including the replacement of pipe lagging in the primary and secondary network, removing older insulation, and upgrading metering equipment.
Local Authorities
- London Borough of Camden: The London Borough of Camden has secured nearly £1 million through HNES to enhance the Mayford Estate’s communal heating system, benefiting 184 residents. This funding will support improvements such as upgrading the secondary network, replacing outdated pipework and insulation, modernising plant room equipment, and installing new Heat Interface Units (HIUs) and thermostats. These enhancements aim to improve system performance, increase energy efficiency, and provide residents with better control over their heating and hot water services.
Housing Associations and Social Housing Providers
- Vico Homes Limited: Vico Homes Limited have been awarded over £850,000 for efficiency improvements to the Smirthwaite and Monument Mews heat networks. Serving 354 residents, support provided by HNES will go towards reducing heat losses on the networks and upgrading old infrastructure. The projects include insulation and HIU upgrades, Thermostatic Radiator Valve (TRV) replacements, and improving monitoring capabilities on the two heat networks.
- Notting Hill Genesis: The City Park West heat network in Central Chelmsford will benefit from over £1.3 million to improve the performance of a heat network serving 645 residents. Having originally conducted an optimisation study supported by HNES in Round 2, NHG will receive support to action recommended improvements through a capital application. The project includes replacing outdated infrastructure, improving insulation, and recommissioning the plant room and substations. Improvements are set to reduce energy consumption, and lower maintenance costs.
- Great Places Housing Group: Over £1 million is being awarded to Great Places Housing Group to help them implement improvements to the Tulloch Court and Elk View Court heat networks in Blackpool. The two networks serve a total of 94 residents, and funding is being provided to enable the conversion of the heat network from a 4-pipe to a 2-pipe system, reconfiguration of the plantroom, recommissioning the building management system, and for other improvements that will improve network efficiency, heat distribution, and water quality.
- Plus Dane Housing: Almost £75,000 will go towards efficiency improvements at Plus Dane Housing Limited's Conway Court heat network, benefiting 22 residents. The project will involve installing new heat interface units in each property for better monitoring and remote control capabilities, improving network insulation, and installing heat meters.
- Bolton at Home: Bolton at Home will receive over £128,000 to improve the efficiency of the St George's Court heat network, which serve 68 residents. To do this, support will go towards improving network insulation, improving the two network's building management system, installing TRVs in each property, and upgrading other plant room infrastructure.
Private Sector
- Ballymore (Hayes) Limited: Ballymore (Hayes) Limited is being awarded £1.4 million of HNES support to improve the performance and efficiency of the communal heat network serving 578 dwellings at High Point Village. The funding will support the replacement of legacy heat interface units (HIUs) in 497 private and shared ownership homes. In the remaining 106 affordable homes, newly installed HIUs will be fully commissioned and integrated into the network. These interventions will improve primary and secondary circuit control, reduce return temperatures, enable more accurate performance monitoring and billing, and reduce planned interruptions.
Revenue Grant Funding
Revenue grant funding will help heat network owners/operators to undertake optimisation studies to review the performance of their heat networks and identify areas for improvement. Applicants may also choose to subsequently apply for capital grant funding to enact the recommendations provided by the study. In Round 8, a total of £796,123 has been granted for 39 studies benefiting heat networks serving 9,400 residents.
Organisations receiving revenue grant funding:
Local Authorities
- Newcastle City Council, for the Riverside Dene and St Ann's Close heat networks, serving 791 residents.
- Folkestone & Hythe District Council, for the Bradfoord Court heat network, serving 48 residents.
- London Borough of Southwark, for the North Peckham heat network, serving 848 residents.
- City of London Corporation, for the Frobisher Crescent heat network, serving 69 residents.
- Southampton City Council, for the Potters Court and Oslo Tower/International Way heat networks, serving 202 residential properties.
- The London Borough of Camden, for the Lymington Estate heat network, serving 267 residents
Housing Associations and Social Housing Providers
- Notting Hill Genesis, for the Coldharbour Lane and Goldhawk Road heat networks, serving 171 residents.
- Believe Housing Limited, for the Primrose Court heat network, serving 56 residents.
- Places for People Group Limited, for the Truncliffe House heat network, serving 30 residents.
- Heart of Medway Housing Association Limited, for the Yeoman House heat network, serving 63 residents.
- Weaver Vale Housing Trust, for the Grange Court heat network, serving 28 residents.
- Orbit Group, for the Victoria Villa heat network, serving 40 homes. Cardiff Community Housing Association, for the Loudon Square Estate heat network, serving 62 residents.
- Leathermarket JMB, for the Cardinal Bourne and Kipling Estate (Low Rise) heat networks, serving 156 residents.
- Ongo Homes, for the Market Hill, Victoria House, and Wold Court heat networks, serving 367 residents.
- Magenta Living, for the Barncroft and Knowsley Court heat networks, serving 95 residents.
Health and Education
- UCLan Professional Services Limited, for the Harris Building heat network.
- University Hospitals Bristol and Weston NHS Foundation Trust, for the University Hospitals Bristol heat network.
Private Sector
- Poolman Property Management Ltd, for the Lower Hall St. Block 1 Apartments heat network, serving 119 residents.
- Graylingwell Energy Services, for the Grayling heat network, serving 650 residents.
- Get Living (EV N06 Ltd), for the Portland's Place East Village heat network, serving 524 residents.
- Greenwich Wharf Management Company Limited, for the River Gardens - Henry Hudson and Francis Drake Court heat network, serving 139 residents.
- Veolia ES (UK) Ltd, for the Rouel Road Estate, Keetons Estate, Four Square and Arica Estate, and Tissington Estate heat networks, serving, 2,316 residents.
Charities
- Exeter Cathedral, for their heat network.
Other
- Compass Spon Street Management Ltd, for the Compass Court heat network, serving 100 homes.
