In our latest webinar, Ian Allan, our Head of Market Strategy at Switch2, and Sam Hales, Low Carbon Consultant at Gemserv, discuss the significance of good maintenance and share information on how to access funding under the Heat Network Efficiency Scheme. Here's a summary of what was covered.

Roughly 2-3% of the UK's heat is supplied by heat networks. The UK government aims to increase this to as much as 20% by 2050. Therefore, funding initiatives have been launched to help meet these targets. At the same time, regulations will be introduced to make the industry fit for this expansion. The majority of heat networks are in the residential sector and operated by building owners. Many of these networks have not been maintained to a standard that minimises costs and breakdowns. Ian challenges building owners to question the standard of maintenance that they are receiving.

Over 90% of heat networks in the UK are fired by gas boilers. Whilst this will change in the future, the main concern for heat network owners right now is how to maintain and improve current schemes, so they are ready for regulation. And although the worst of the energy crisis is now over, heat network owners are still buying gas at at least twice the price of that pre-crisis. 

Gas prices continue to pose major challenges, and building owners need to manage their costs carefully. Here, Ian highlights the importance of maintaining a heat network:

"Return temperatures are key in maintaining a good performing heat network. Controls need to be set properly and the distribution system balanced correctly. But settings will change over time, hence why maintenance is needed."

Ian also explains that heat networks are very different from standard heating systems, as the heat interface units and radiator settings have a significant impact on the performance and costs. Good heat network maintenance needs a specialist contractor that looks after the whole network from the energy centre to the radiators. 

Ian highlights how understanding maintenance through data-driven metrics can provide insights into how a heat network is performing and drive maintenance priorities.

"Using this information can tell you where your heat network is going wrong and this is more important than before."

He also stresses that building owners should take advantage of available funding for optimisation studies to help identifying issues and the specific areas for improvement.

The government programme was launched in 2013 with the introduction of the Heat Network Investment Project and Green Heat Network Fund. The government recognises that it can only achieve its targets of expanding heat network coverage if the old schemes are upgraded to meet the current standards. Sam highlights that the objectives of HNES funding are:

"To reduce carbon emissions by making existing heat networks more efficient, reduce customer detriment to improve customer confidence where they are underperforming and making them more reliable so that they are performing as expected."

If you are currently operating a district heat network or communal heating system in England or Wales, regardless of whether you are in the public, private or third-party sector, and have the authority to approve investment decisions, then you are eligible to apply for funding. There are two types of funding available - revenue grants and capital grants. Revenue grants are used to support optimisation studies, whilst capital grants provide partial funding for installation works. Sam explains these two options and also talks through in more detail about the available funding, what is eligible and what is not covered under the funding.

Sam shares that the programme has been successful so far, with over £28.6m awarded for 167 projects that are benefitting over 32,000 residents. In Round 4, £3.5m was awarded for 25 heat networks, benefitting 5,700 residents, including students and hospital patients. Round 5 awards are soon to be announced.

If you're interested in applying for the HNES programme, please note that the applications for Round 7 are currently open. You need to submit your expression of interest by 19th July 2024 and send your application in by 26th July 2024. Further rounds of funding are expected and will be announced later.

The HNES team is here to help you at every stage of your application process. There are also many resources available to support you. You can also speak to one of the HNES Relationship Managers, who have a technical background, to discuss your projects in more detail.

  Watch the webinar

Get in touch

If you would like to speak to one of our experienced team at Switch2 about your heat network optimisation projects or need any support with applying for funding, we are here to help.