FairHeat has the expertise and experience to help you secure government funding through the Heat Network Efficiency Scheme (HNES) Demonstrator, for capital or revenue grants, to improve the performance of your heat network.

What is the Heat Network Efficiency Scheme (HNES) Demonstrator?

The Heat Network Efficiency Scheme (HNES) Demonstrator is a £4.175 million grant scheme for the 2021 to 2022 financial year. It will support performance uplifts to existing heat network or communal heating projects where outcomes for customers and operators are sub-optimal.
The measures delivered by projects will support short-term and sustained efficiency savings in fuel consumption and carbon emissions, and address areas of customer detriment. These outcomes will also lay the groundwork for projects to optimise performance to enable more efficient and effective decarbonisation in future.
Projects can apply to the HNES Demonstrator for either revenue grant funding or capital grant funding:

  • Revenue grants (HNES budget up to £0.375m) – grants to fund procurement or mobilisation of external support to carry out Optimisation Studies. These studies will assess heat network projects to identify causes of sub-optimal performance and recommend costed intervention or improvement measures.
  • Capital grants (HNES budget up to £3.8m) – grants to part-fund the delivery (installation) of eligible intervention/improvement measures.
Read more about the scheme

How Can FairHeat Help You Secure Funding?

FairHeat have extensive experience in performance analysis of existing heat networks. By carrying out performance analysis of more than 80 operational heat networks, FairHeat have developed a process for assessing the performance of a heat network using operational data and site inspections.

In 2020, through the Heat Network Optimisation Opportunities programme, FairHeat were selected by BEIS to deliver business cases for improving and decarbonising ten existing residential heat networks. These heat networks ranged from 80 to 1,000 dwellings and spanned public, private and ESCO sectors. Focusing on the use of heat meter and BMS data, root cause analysis was undertaken resulting in the identification of performance improvement opportunities. A financial appraisal was carried out and a business case was presented back to Sponsors to carry out an informed investment decision. Improvement options with short paybacks were provided for all ten projects and key heat network operators have begun implementing the proposals which have demonstrated immediate performance improvements in line with FairHeat’s analysis.

FairHeat also have extensive practical experience in implementing the analysis as they have carried out retrofitting of over 20 existing heat networks, from producing original Stage 2 heat network designs to project management of retrofit works.

In 2021, through the Heat Network Efficiency Scheme (HNES) Demonstrator, FairHeat were selected by BEIS to carry out 20 optimisations studies and 13 capital grants projects.

Application

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Optimisation Studies

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Capital Improvement Works

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