Heat Networks Delivery Unit (HNDU)

HNDU grant funding will fund 100% of the estimated eligible external costs of heat network development studies. There will be no match funding requirement in general as part of the application process; in specific circumstances the Department for Energy Security and Net Zero (DESNZ) reserves the right to specify a matched funding contribution. HNDU grant funding can also provide up to 100% of the cost of estimated externally procured project management support for public sector applicants and registered social landlords only.

Applicants will need to demonstrate that they have a need for this resource, and source indicative quotes from the market.

The Heat Networks Delivery Unit (HNDU) provides support to local authorities in England and Wales through the early stages of heat network development, including:

• techno-economic feasibility
• detailed project development.

HNDU support does not provide funding for commercialisation costs and costs associated with the construction, operation and maintenance of a heat network. The Unit’s popularity has meant further funding has been made available beyond the initial £288 million to support organisations in the public, private, and third sectors in England. The additional funding can be drawn down in financial years 2024/2025 through to 2027/2028.

A two-stage application process is now in place for Round 15 (1. Expression of Interest & 2. Detailed Assessment)