Advising on decentralised heat networks

Since 2021, Amberside Advisors, a Steer company, has been supporting a consortium led by Triple Point, in the role of delivery partner to the Department for Energy Security and Net Zero (DESNZ), to promote and provide government funding for heat network projects from its £300m+ Green Heat Network Fund (GHNF). This operates through rounds of quarterly competitive applications by both public and private sector, with eligible projects that have strong growth potential most like to receive both feasibility / commercialisation grants (up to £1 million) and construction grants (uncapped but require match of 50% or more).

The Committee on Climate Change (CCC) has identified a need for significant growth in decentralised low carbon energy to replace gas as a fuel for heating residential and business premises. To support this, gas will no longer be permitted for new residential beyond 2025 and zoning will be introduced requiring heat sources to connect to networks, and for local authorities to take on the role of Heat Zoning Co-ordinator, which will define areas where connections are mandated.

With growing interest in the sector from financial investors, and reduced funding appetite from the public sector (as rising interest rates make borrowing less appealing), Amberside has established a procurement route, BHIVE, to provide a route for project sponsors to access commercialisation support and construction financing that is compliant with Public Contract Regulations (PCR). It is open up to 31 March 2025 and is a dynamic purchasing system, meaning that investors can be added during this period, which fits with a sector where interest is growing.