As the Programme Director for two major heat network funding schemes over the past six years, I have had the unique privilege of witnessing firsthand how effective collaboration, sheer hard work, and innovative solutions can bring about transformational change. This edition of the Futurebuild newsletter reflects on the journey we’ve taken as a team to deliver the Heat Networks Investment Project (HNIP) and its successor, the Green Heat Network Fund (GHNF). These schemes, delivered by Triple Point Heat Networks Investment Management (TPHNIM), in partnership with the Department for Energy Security & Net Zero (DESNZ) have been instrumental in advancing the UK’s progress towards net zero. I am incredibly proud to have been part of this transformative journey. 

The Importance of Heat Networks 

Heat networks are a fantastic solution to decarbonise the way we heat and cool our homes and workplaces. They leverage a central heat source and distribute this heat to multiple customers through a network of underground pipes carrying hot water. This approach not only reduces the need for individual heating systems but also minimises the costs and disruptions often associated with upgrading them. Ideal in dense urban areas, they harness locally available sources of waste or renewable heat and provide a cost-effective, energy-efficient heating alternative that reduces carbon emissions. 

However, heat networks are not a new concept. Countries like Denmark have long embraced this technology with 64% of Danish households having been connected to heat networks by 2019. The success of Scandinavian countries in adopting heat networks underscores their effectiveness in reducing carbon footprints and ensuring energy security. 

The UK’s progress 

Why are other countries so far ahead, and what is the UK doing to capitalise on the opportunity? While the UK has lagged in adopting heat networks, significant strides have been made to catch up, and the best part of the last decade has shown that we have the supply chain, talent, funding and policy frameworks in place to transform our heating infrastructure. 

Our involvement began in 2018 with the launch of HNIP, aimed at accelerating the design and construction of heat networks across England and Wales. Following the UK’s commitment to achieving net zero by 2050, our focus on decarbonising buildings has become more crucial than ever. The HNIP closed in 2022 when we were successful in our bid to deliver its successor, the Green Heat Network Fund. Due to run until 2028, TPHNIM will have been at the forefront of the market for 10 consecutive years.

Collaborative success

As the Government’s primary contractor, Triple Point Investment Management collaborated with a highly experienced group of sub-contractors, forming Triple Point Heat Networks Investment Management. This consortium has been instrumental in the success of HNIP and GHNF over the last six years. By leveraging our position, we’ve provided valuable feedback from the market which has helped to shape the funding schemes, whilst also ensuring government funds are used efficiently to maximise impact. 

Our success is driven by a shared ambition to deliver the HNIP’s foundational commitment to create the conditions for a self-sustaining heat networks market in the UK. It’s a goal that feels tantalisingly within our reach. 

The Green Heat Network Fund

The GHNF supports the creation of low carbon heat networks, funding projects which implement low carbon heat technologies such as deep geothermal, heat pumps, and waste heat solutions from sources including sewers, rivers, data centres, and disused coal mines. Together with the HNIP, we have awarded more than £790 million to projects across England and Wales which will go on to deliver heat to more than 130,000 residents as well as numerous public and private sector buildings including schools, universities and leisure facilities. 

A lasting legacy 

Currently providing just 3% of the UK’s heat demand, heat networks will be the lowest cost, low-carbon heating solution in more than 80% of our major urban areas. 

The HNIP and GHNF have laid strong foundations for continued public-private sector partnerships in the future. Looking ahead, the focus will shift towards maintaining the momentum already created with regulatory frameworks and enhanced consumer protections expected to play a significant role in building trust and confidence in heat networks and in the business models that underpin them. 

While there is still much to be done, the impact of efforts will become evident in years to come. I hope you enjoy exploring this newsletter and discovering some of the real-life benefits some of the schemes have unlocked.