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It’s been a busy month in the Department – see below for updates on new funding, regulation, work to help the heat network industry and local authorities, and upcoming events!
Funding announcements
Heat Training Grant opens for applications from training providers – deadline 11th June
Applications are now open for organisations that provide training to deliver, maintain and operate heat network to become part of the Heat Training Grant. This offers up to £500 of support per individual to training providers. We’re keen to build on the successful delivery of over 10,650 training placements during the first two years of the scheme.
Read the full announcement here.
To apply - take a look at the guidance, complete the application form contained, and return it to heatnetworks@nottinghamcity.gov.uk before 11th June 2025.
The Green Heat Network Fund scores a century
Green Heat Network Fund (GHNF) awards of over £102m have been announced, the biggest package so far. Eight projects across England will get funding for networks to supply schools, hospitals and universities, as well as many homes and businesses.
One recipient is SWAN, which aims to be one of the biggest heat networks in the country. We have also awarded funding to Trafford Council for their civic quarter network and to Mersey Biochar, the first heat network in the UK to use a biomass feedstock plant. More information on the projects is available here.
We are also pleased to confirm the appointment of Triple Point as delivery partner for the next phase of the fund. Find out more here.
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Regulation
New industry standard for Heat Interface Units launched
We are encouraging industry to adopt a new test standard for Heat Interface Units (HIUs) developed by BESA. This standard gives manufacturers a pragmatic and practical way to test, assess and compare the performance of their HIUs and allows developers to evaluate the performance of specific HIUs in typical UK operating systems against their design requirements. The intention is that a pass against the 2023 or (upcoming) 2025 versions of BESA HIU Test Standard will be included as a minimum requirement in the Heat Networks Technical Assurance Scheme (HNTAS) technical specifications. We recommend that industry utilises this standard when procuring HIUs.
Heat networks regulation – have your say on fair pricing protections
Ofgem have published a consultation on a fair pricing framework for heat networks. This includes the structure and principles behind the pricing framework, as well as a 'fairness test' for implementation.
The Heat networks regulation: fair pricing protections consultation is open to all, and the deadline to respond is 9 July 2025.
There are two webinars to support stakeholders to respond to the consultation
- 21 May, 2-4pm – overview of the consultation. Register here.
- 4 June, 2-3.30pm – proposals for improving price transparency for consumers through the publication of pricing data. Register here.
To be notified about updates from Ofgem, email heatnetworksregulation@ofgem.gov.uk.
Local government
Lane rental guidance updated to benefit heat networks
The Department for Transport (DfT) have updated guidance on lane rental schemes. These schemes allow certain highways authorities to charge higher fees for road works in traffic-sensitive streets.
DfT have added the Heat Network Zoning Authority (Central Authority) to the bodies that local authorities must consult when proposing new schemes, and that they must provide DfT with regular updates. These changes mean DfT can help ensure heat network developers are aware of upcoming schemes and can account for costs early in planning.
The adoption of roads containing heat network assets
We understand some developers are facing issues with local authorities being reluctant to take responsibility for new roads with heat network infrastructure due to concerns about the assets being unregulated.
As set out in our 2021 government response to the market framework consultation,(pg. 66) we are introducing a licencing scheme in the coming years as part of sector regulation. After passing some assurance checks, developers will be able to apply to gain access to additional legal rights (including being recognised as a statutory undertaking) which will make building networks easier and cheaper.
If you are a developer and a local authority has declined to adopt a new road due to heat network pipes, please provide relevant information to us via the Heat Network mailbox so we can monitor this issue.
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Research
Analysis of heat networks investment 2024 Q4 published
The latest analysis of the heat networks pipeline has been published. This brings together data on government supported projects in England and Wales. At the end of 2024 Q4, the total active capex was over £5.9 billion, made up of three major government funding schemes – the Green Heat Network Fund (GHNF), Heat Networks Investment Project (HNIP), Heat Networks Delivery Unit (HNDU).
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Events
UKREiiF: 20 - 22 May - Leeds
The Heat Networks team are attending UKREiiF in Leeds next week and hope to see some of you there! Come say hello in the Royal Armouries Hall on stand K52, or see us speaking at:
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Unlocking the Net Zero city - Buro Happold – Industry in Focus Pavilion – Tues 20 May, 12:30 – 13:30
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Decarbonising communities: energising towns and rural future – AECOM – AECOM café and meeting space – Weds 21 May, 8:30 – 9:30
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Heat Network Zoning: what property developers and investors need to know – Burgess-Salmon – Asian and African Gallery - Weds 21 May, 10:30-12:00
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Carbon Liveable London – Hemiko – London Pavilion – Weds 21 May, 11:45-12:30
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City Wide Clean Heat: A Real Estate ESG Saviour or an Investment Pipe Dream? - Vital Energi and Star Refrigeration – Asian and African Gallery – Weds 21 May, 12:45 – 13:45
UK DEA Expo: 7 July – London
We are happy to support the UK DEA Expo 2025 event taking place in the Leonardo Royal Hotel on 7 July.
This free event is aimed at people:
- New to heat networks wanting to find out more
- Impacted by forthcoming sector regulation and Heat Network Zoning
- Working in the sector
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