Michael Holder, Business Green
A new £320m funding drive aimed at boosting low carbon sources of heating for homes and businesses has been officially launched by the government this week in a bid to stimulate private investment in expanding the number of heat networks in towns and cities across the UK.
The launch of the Heat Networks Investment Project (HNIP) was announced on Tuesday as part of Green GB Week, bringing together £320m of government loans and grants and additional investment from a host of energy companies, including Engie, E.ON, Vattenfall, SSE, and Metropolitan.
The aim is to leverage up to £1bn of private and institutional investment in accelerating the design and construction of low carbon heat networks in a bid to cut emissions from what is widely seen as a hard-to-decarbonise sector of the economy.
Investment manager Triple Point has been appointed by the government to deliver the project, and will be responsible for identifying viable low carbon heating projects in which to invest the money. Likely targets include residential and commercial property developments and industrial parks, where heating networks can be shared across multiple properties.