Grants and loans will be available from the autumn under the UK Government’s new £320 million Heat Networks Investment Project (HNIP).

The cash, which is part of the Clean Growth Strategy, will be available to projects in both the public and private sectors that provide heat to two or more buildings.

Energy Minister Claire Perry said: “The UK has led in the decarbonisation of electricity, and today’s announcement shows we are just as committed to tackling heat.

“Today’s announcement creates a route to market for innovative energy projects across the country and demonstrates a key objective of the Clean Growth Strategy; to help deliver technologies that can lower bills, cut carbon and improve the quality of life for communities across the country.”

Market framework

News of the HNIP was welcomed by the energy industry.

Lily Frencham, Senior Policy Manager at the Association for Decentralised Energy (ADE), said: “HNIP will support the growth of the heat network industry and is welcomed by the ADE.

“It is encouraging that government is also examining the measures necessary for the creation of a sustainable market framework beyond HNIP and is taking into account the recommendations of the ADE-led industry task force report, ‘Shared Warmth’, as part of that process.”

> See the UK Government's statement