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HNDU funding: The basics and how you can apply

Posted by Ian Allan

The Heat Network Delivery Unit (HNDU) funding round eight comes to a close on 31st December 2018. Could you be eligible to enter? Our blog looks at what you need to know about the HNDU funding, and how it can help future heat network projects.

What is HNDU funding?

Established in 2013, HNDU provides grant funding and guidance to local authorities in England and Wales. It is part of and directly funded by the Department for Business, Energy and Industrial Strategy (BEIS) and designed to help progress the development stages of heat network projects.

HNDU supports projects through the early stages of a heat network, such as heat mapping, energy master planning, feasibility study, and project development or commercialisation phases of a project.

Why was HNDU introduced?

The unit was devised to help support the strategy to decarbonise heat by 2030, with a core purpose to support heat network projects during the development stages of a scheme. Heat networks can contribute to local authorities’ targets and aspirations for carbon emissions reduction, fuel poverty, cost reduction, regeneration, local jobs and growth.

They form an important role to reduce carbon emissions and cut heating bills for domestic and commercial buildings. Providing a unique opportunity to exploit larger scale – and often lower cost – renewable and recovered heat sources that otherwise would not be used, such as heat from biomass, the London Underground, water and in some cases wind.

Who does it apply to?

The funding is open to local authority projects only (this does not preclude local authorities from working with partners). Round 8 of the funding is open to both local authorities that have previously applied for HNDU funding and those that have not.

Depending of the stage and size of the scheme, local authorities can receive grants of up to 67% of the estimated costs, however they will need to have secured at least 33% in matched funding elsewhere. To date, HNDU has arranged support to over 200 unique heat networks projects across 140 local authorities in England and Wales, including over £17 million of grant funding from the first 7 rounds.

How HNDU funding works/what it covers

The application process consists of a pre-qualification and a full application; if successful, a formal review with the Heat Networks Grant Appraisal Panel will take place. The full application process could take up to 12 weeks, with HNDU informing the applicant as early as possible.

 

Key takeaways

  • Heat Networks Delivery Unit (HNDU) was set up to help support the strategy to decarbonise heat by 2020
  • HNDU funding can provide local authorities with support and guidance for the development stages of a heat network
  • To date, over 200 unique heat networks projects across 140 local authorities in England and Wales have secured funding
  • Round 8 of the funding is still open until December 2018

Steps to Saving: the Journey to Community Heating

Ian Allan

Head of R&D at Switch2

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