UKDEA Media Release
ukDEA welcomes £24m investment for heat networks across the UK
7th April 2017
The UK District Energy Association has welcomed the news of the awarding for £24 million to support heat network projects in towns all over the UK. Nine projects have been announced as winners of the funding, which is the first round from a total pot of £320 million, set aside for heat network development.
Announced today by Climate Change and Industry Minister Nick Hurd of BEIS, the funding will enable projects to take place from Sheffield to Camden, with planned works ranging from developing energy from waste (EfW) plants to extending CHP driven heat networks. In addition to the nine winning authorities, a further four have been awarded around £200,000 to help develop their plans.
Awards range from £1.05m up to £3.51m per local authority, with one being awarded a total of £5.73m with £3.5m of that as a repayable loan. Authorities total planned capital expenditure range from £1.78m up to £13.58m, with the funding covering from approximately 20 to around 60 per cent of the project cost.
The ukDEA are excited to see so many robust heat network projects coming on line, and to see that the government is committed to developing this exciting technology for the future. Chairman of the ukDEA, Simon Woodward, commented,
‘It’s great to see these awards have been made, it’s really positive news for the industry. We hope that BEIS has learned lessons from the Pilot Stage in terms of the complexity of the applications, particularly the financial modeling. They need to follow up as quickly as possible with advice on timing and next application dates for the full project.’
This funding scheme will run for five years, and is expected to provide support for up to 200 heat networks around the UK. As well as providing capital expenditure for building works, it is anticipated that the scheme will leverage in around £2bn of wider public and private investment.
It is projected that heat networks have the potential to reduce heating costs in some cities by more than 30 per cent, so this investment is a powerful indicatory of the heat network’s place in the UK’s future energy strategy. For more information on the Heat Networks Delivery Unit (HNDU) funding, and to see the full list of successful applicants, please visit the Gov.UK website
Notes to Editors:
The partners, owners and operators of the largest district energy schemes in the UK have aligned themselves in the creation of the UK District Energy Association (ukDEA); with the aim of not only promoting district energy as a means to deliver significant carbon savings, but also to establish a direct link between the Government and the industry's small market base.
The Association is a not for profit, non-trade association of companies and public sector organisations involved or interested in district energy schemes of all sizes, from village scale, community based 'micro district energy' schemes to city wide district heat energy networks.
The ukDEA has attracted leading players in the industry, with the ukDEA’s six Founding Member organisations:
- Birmingham City Council
- Cofely District Energy Limited (Now ENGIE)
- Enviroenergy Limited
- Southampton City Council
- Thameswey Ltd
- Veolia Environmental Services Limited
ukDEA Full Members in addition to Founder Members:
- Brookfield Utilities/GTC Limited
- Coventry City Council
- Switch 2 Energy Limited
- E.ON Energy Solutions Limited
- Leicester City Council
- Manchester City Council
- Newcastle City Council
- Newport City Homes Limited
- Shetland Heat, Energy and Power Limited
- SW Energy Limited
- Viridor Waste Management Limited
- Vital Energi Utilities Ltd
Together, these 18 organisations represent the: Birmingham, Coventry, Exeter, Leicester, Liverpool, Manchester, Milton Keynes, Newport, Newcastle, Nottingham, Sheffield, Shetland, Southampton and Woking District Energy schemes, together with a number of schemes in London including Olympic Park and Stratford City, Metropolitan Kings Cross, Bloomsbury Heat & Power, Whitehall, Hatfield, Dalston Square, Greenwich Millennium Village, Barbican Arts Centre, Guildhall, Bastion House, Ontario Tower, Pan Peninsula, Baltimore Wharf, Wapping Lane, High Point Village and London Central Markets and others.
The ukDEA also has 125 very knowledgeable Associate Members, including Local Authorities, Colleges & Universities, leading industry companies as well as several international members, sharing and contributing information to our district energy knowledge base.
ukDEA Key Facts:
Together the ukDEA members represent:
- Over 120 MW of low carbon generation plant (CHP, biomass, EFW etc)
- Supported by over 600 MW of conventional back up boiler plant
- Delivering over 700,000,000 kWh of heat each year
- Across energy networks which, if combined, would extend for more than 200km
Through Full and Associate membership, the UK District Energy Association's aim is to represent current and potential owners, developers, consumers, partners, operators, product suppliers and interested parties of District Energy schemes throughout the UK.
The ukDEA welcomes new members. Be part of the largest district energy information sharing loop in the UK and apply for membership of this forward thinking Association today.
For more information and membership details contact:
Chris Tanner Secretary
UK District Energy Association Thames Head Wharf
Tetbury Road Cirencester Gloucestershire GL7 6NZ
Office: 01285 770615
Mobile: 07773 457941