Government unveils Heat Network Zones across the country • Government grants £9.8 million to three heat network projects • Joint venture to build the UK's largest heat network in central London • Read more about the developments in sustainable heating and cooling in this month's news update from the UK
The UK government has announced the establishment of six heat network zones in Leeds, Plymouth, Bristol, Stockport, Sheffield, and two London locations, supported by a £5.8 million public funding allocation. The zones are designed to identify optimal areas for installing large-scale heat network infrastructure to provide low-carbon heating for multiple buildings. This development forms part of the government’s strategy to enhance energy security, reduce carbon emissions, and drive down energy costs for households and businesses.
According to Energy Minister Miatta Fahnbulleh, the zones will not only deliver low-cost, low-carbon heating but also create tens of thousands of green jobs, contributing to the UK’s clean energy transition. The project has also received praise from industry leaders, such as Caroline Bragg, CEO of the Association for Decentralised Energy, who emphasised the economic and environmental benefits of heat networks, which attract significant private investment and create local employment opportunities.
As the UK embarks on this ambitious journey, a new technical assurance scheme will be introduced to improve the performance of heat networks, ensuring reliability and efficiency. While concerns remain about upgrading inefficient existing networks to meet new standards, the initiative represents a critical step in the UK’s mission to decarbonise heating and achieve established net-zero goals.
Read more in article from Edie
The UK Government has announced its final funding allocations under the previous Heat Networks Investment Project (HNIP), awarding £9.8 million to three heat network projects. Launched in 2018, the HNIP has provided £304 million in grants and loans to develop heat networks across England and Wales, before closing for applications in 2022. Over its duration, the programme has supported the supply of over 700GWh of lower-carbon heat, cutting more than 81.000 tonnes of carbon emissions annually, and setting the foundation for the UK’s future low-carbon heating infrastructure.
Among the beneficiaries, E.ON received £6.3 million for its Silvertown Quays project in East London, where the company will deploy its innovative Ectogrid technology. This system enables buildings to share heating and cooling, redistributing surplus energy to buildings of greater demand.
Gateshead Council was awarded £2.9 million to extend its existing district energy scheme, which had already undergone a major expansion funded by a previous HNIP round. The new funding will connect low-rise social housing estates to the network, advancing the council’s goal to link 15.000 homes by 2030. The project’s foundation includes a 6MW mine water heat pump, underlining its commitment to decarbonised energy solutions for local residents.
Islington Council secured £678.000 to expand the Bunhill Heat and Power Network (BHPN), which already provides low-carbon heat to homes, schools, and leisure centres. This funding will extend the network to serve new developments, including 1.000 homes, retail spaces, and Telfer House. The BHPN also stands out as the first scheme worldwide to repurpose waste heat from the London underground for residential and commercial use.
Read more in article from Edie
The UK is taking a major step toward decarbonising urban heat with plans for the South Westminster Area Network (SWAN), a £1 billion heat network project that will be the largest of its kind in the country. Spearheaded by a joint venture between Vital Energi and Hemiko, the ambitious scheme aims to deliver low-carbon heat to approximately 1.000 buildings across central London, including iconic landmarks such as the Houses of Parliament.
Designed in collaboration with the Department for Energy Security and Net Zero (DESNZ) and global engineering consultancy Aecom, SWAN will harness waste heat from three unique sources: the River Thames, the London Underground, and local sewer networks. The phased project is expected to begin supplying heat as early as 2026, with full completion projected by 2050. By 2040, the network could save up to 75.000 tonnes of CO₂ annually, and connected buildings will reduce their carbon emissions by up to 92% compared to current levels.
The anticipated network will cover the area from Victoria Station to Temple Underground Station, between St. James’s Park and the River Thames, and will showcase how large-scale urban heat networks can deliver energy efficiency and cost savings. Backed by private investment and supported by advisors such as HermeticaBlack and Asteros Advisers, SWAN underscores the growing momentum behind heat networks as a critical piece of net-zero infrastructure part of the UK’s energy transition.
Read more in article from Construction Enquirer News
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