UK supports English low-carbon heat networks with GBP270 million

The UK government is to make GBP270 million ($374 million) available from April 2022 to support low-carbon heat networks using technologies like heat pumps, solar and geothermal energy, the Department for Business, Energy and Industrial Strategy said Sept. 7.

There are 14,000 heat networks in the UK, providing heating and hot water to 480,000 consumers, or just 2% of overall UK heating demand. Over 80% of UK households use gas-based central heating systems.

"Finding a mix of innovative solutions to how we heat our homes in the most affordable way is going to be vital as we support people to gradually transition away from gas boilers over the next 15 years," said Energy Minister Lord Callanan.

The Green Heat Network Fund is expected to fund 10.3 million tonnes of CO2 savings by 2050 via capital grants, BEIS said.

The Committee on Climate Change has estimated that, with continued support, heat networks could provide 18% of UK heating demand by 2050.

The funds, first announced by the Treasury in the March 2020 budget, would be open to public, private and third sector applicants in England from April 2022 and run to 2025, BEIS said.

The ministry has already provided GBP320 million in heat network funding in England and Wales through the Heat Networks Investment Project, which runs to March 2022.

While this fund focused on accelerating the growth of the heat network market and allows fossil fuel sources of heat provided they offer carbon reductions and will be replaced by low-carbon alternatives over time, the successor scheme is to incentivize new and existing heat networks in England to move away from high-carbon sources, "as well as exploiting waste-heat opportunities while bringing down costs for consumers," BEIS said.