UKDEA Media Release
The ukDEA welcomes government announcement of £6 million fund for Local Authority heat networks
23 September 2013
The ukDEA welcomes the Government's announcement of a new £6 million grant funding programme to assist Local Authorities in developing new district energy networks.
The fund which is targeted at Local Authorities will be managed by the new Heat Networks Delivery Unit within DECC. The fund will help Local Authorities develop robust business plans which are expected to leverage further financial support and attract commercial investment. The fund will meet 67% of the cost of hiring consultants to draw up technical assessments and financial evaluations, with the applicant contributing the remaining 33%.
Bidding for the grant funding started on 20 September 2013 and will continue for 18 months through a series of six bidding rounds, with bids assessed on their potential for further commercial development and potential contribution to carbon reduction.
The ukDEA believes that targeting Local Authorities provides a step in the right direction, as Local Authorities can provide the essential project leadership and political will required to develop heat networks. The ukDEA is pleased that Government is not being prescriptive on the consultants that can be engaged but it is important that the councils receiving these funds ensure the work is being undertaken by genuine experts with relevant experience, otherwise they may run the risk of receiving poor advice.
The ukDEA also hopes that the new fund will help Local Authorities address the important issue of fuel poverty particularly within the social housing sector under Local Authority control. Fuel poverty remains one of the key issues that the new Heat Networks Delivery Unit aims to help address and it is fitting that funds be directed at Local Authorities as a start.
ukDEA chairman Simon Woodward, commented;
'This latest initiative by Government signals its continued will and commitment to the development of low carbon heat networks and is in line with Government's objective of decarbonising the nation's heat as stated in DECC's Heat Strategy. One of the biggest barriers to district energy in the UK is the high cost of installing the networks and we would have preferred to see some capital funding support to address this. The Government can still do more to address the issue of the crippling cost of getting networks installed'
The ukDEA will continue to encourage Government to invest more in district heating, as a key building block in developing sustainable cities for the future.
Further information on how to apply for the Local Authority Heat Networks Fund can be found here:
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.
Still in its infancy, the ukDEA has attracted leading players in the industry, with the ukDEA's Full members comprising of 15 major organisations:
- Birmingham City Council
- Brookfield Utilities/GTC Limited
- Cofely District Energy Limited
- Coventry City Council
- ENER-G Switch 2 Limited
- Enviroenergy Limited
- E.ON Energy Solutions Limited
- Leicester City Council
- Newcastle City Council
- Newport City Homes Limited
- Shetland Heat, Energy and Power Limited
- Southampton City Council
- SW Energy Limited
- Thameswey Limited
- Veolia Environmental Services Limited
Together, these 15 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.
The ukDEA also has 42 very knowledgeable Associate Members, including 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 our district energy information sharing loop and apply for membership of this forward thinking Association today.
For more information and membership details contact:
Secretary & Administrator for the ukDEA
Thames Head Wharf,
Office: 01285 770615 Mobile: 07773 457941