Green Heat Network Fund (GHNF) Transition Scheme open to applications next month

The Green Heat Network Fund (GHNF) Transition Scheme, which supports the commercialisation of low-carbon heat network projects, will be open to applications in July 2021.

GHNF is a capital grant fund open to public, private, and third sector applicants in England, which supports the development of low and zero carbon (LZC) heat networks (including the supply of cooling).

Its aim is to capitalise on the progress and development made by the Heat Networks Investment Project (HNIP).

Heat networks are vital to achieving a clean, cost effective and just transition to net-zero and deliver a wide variety of benefits to the environment, consumers, and the economy. They can utilise otherwise wasted energy, provide grid balancing services in an increasingly electrified heat market and offer a low carbon supply of heat at competitive prices to households and businesses alike.

Large scale investment is essential to the development of this market and the GHNF will help tackle some of the most prominent barriers to decarbonisation of heat networks. Increased deployment will help bring down the up-front capital costs of low carbon technology due to greater standardisation. The utilisation of low carbon technology will help bring down operating costs in the long term as well as upscaling the skills and knowledge required to operate them to the benefit of both the customer and network operators.

The upscaling of the supply chain, skills, procurement and increasing the overall competition that will take place as a result of the GHNF are all crucial if the market is to become both self-sustaining and low carbon. The GHNF is therefore critical in order to lay the groundwork for a healthy thriving low carbon heat network industry that is well prepared for the future carbon budgets in the late 2020s and ready to grow even further in order to meet the carbon budgets in the 2030s.

See the BEIS website for more information, including guidance on making an application:  gov.uk/government/publications/green-heat-network-fund-ghnf-transition-scheme