The UK Government has launched the Heat Networks Investment Project (HNIP), which will invest £320 million in heat networks across the country.
It has appointed Triple Point Heat Networks Investment Management to deliver the scheme – the firm will be responsible for allocating and deploying capital, which it expects to leverage around £1 billion of private finance.
The money will be used to provide a series of grants and loans to both the public and private sectors, helping increase the market share of the technology, which experts suggest is likely to play a key role in the solving the challenge of decarbonising heat.
Heat networks distribute waste heat from a central source to a number of other customers, such as office buildings or a block of flats – the process is highly efficient and the government estimates such systems could provide up to 17% of heat demand in homes and nearly a quarter of demand in public and industrial buildings by 2050.
The scheme will open for applications in the autumn, with the first funding decisions expected next year.