Pilot project kicks off £320m heat network fund

BEIS has launched a £39m pilot funding scheme to pump-prime low-carbon heat investment in the public sector

BEIS intends that the £39m pilot will help inform design of the wider £320m HNIP scheme. Photograph: Jean Schweitzer/123RFThe government has launched a £39m pilot scheme aimed at driving greater development of heat networks as part of its £320m Heat Networks Investment Project, together with criteria on how funding will be used.

The funding, first announced in the 2015 Autumn Statement, will be available over the next five years, and is expected to draw in up to £2bn of additional capital investment for hundreds of heat networks in urban and rural areas in England and Wales. This should be enough to supply some 400,000 homes.

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