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Government launches £288m heat network fund

Bidding has opened for a £288m government fund aimed at heat networks utilising low-carbon technologies. 

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Picture: Getty
Picture: Getty
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Bidding has opened for a £288m government fund aimed at heat networks utilising low-carbon technologies #UKhousing

Public, private and third-sector applicants in England can bid for a share of the Green Heat Network Fund, which the government said is expected to reduce carbon emissions equivalent to taking 5.6 million cars off the road for a year.

Heat networks are a key part of the government’s plan to transition towards net zero by 2025 and are set to become a major source of heating in towns and cities. 

Unlike gas boilers where heat is generated in individual homes, heat networks see heat generated at a single central source and then distributed to multiple buildings via pipes. 


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There are currently more than 14,000 heat networks in the UK, however the majority of them are still powered by gas. 

The Green Heat Network Fund will support the uptake of low-carbon technologies like heat pumps, solar and geothermal energy as a central heating source.

Applications for grants can be made from 14 March and funding will be made available over the next three years. 

Energy minister Lord Callanan said: “Heating in buildings forms a significant part of the UK’s carbon footprint, so changing how we warm our homes and workspaces is vital to meeting our world-leading climate change commitments.

“Heat networks are an effective way of reducing carbon emissions and this fund will enable us to accelerate the roll-out of these cutting-edge and green technologies.”

The Green Heat Network Fund is the successor scheme to the government’s Heat Networks Investment Project, which provided over £250m of funding for more than 20 schemes across England and Wales. 

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