Government

Councils receive £2 million for heat-from-waste networks

 

The Department of Energy and Climate Change (DECC) has today (30 January) announced that it has awarded £2 million to local authorities in England and Wales to help them implement low-carbon heat networks.

A total of 26 local authorities across England and Wales have been awarded over £1.9 million (through grants of between £15,000 to £250,000) to support the development of low-carbon district heating projects.

District heating projects can supply heat from a central source, such as heat recovered from energy-from-waste plants or landfills,to a number of buildings or dwellings through a system of insulated pipes.

There are currently approximately 2,000 heat networks in the UK, supplying heat to 210,000 dwellings and 1,700 commercial and public buildings. A further 150 schemes are known to be under development by local authorities across the UK.

Successful bids

Bids were assessed against a range of criteria including technical feasibility, commercial viability, future carbon saving, and social benefits.

The projects represent the first wave of successful bidders to be announced under the government’s £7-million fund to promote the development of district heating through its Heat Networks Delivery Unit.

It is hoped the projects (most of which are yet to be developed) will provide ‘more efficient heat to buildings’ and potentially lower heating bills. Indeed, DECC estimates that by 2030, around 14 per cent of UK heat demand could be ‘cost effectively met by heat networks’, rising to 43 per cent by 2050.

As well as the funding, the 26 LAs will also be given commercial and technical help, including assistance in developing ‘robust business plans’ to attract commercial investment.

Speaking of the funding, Energy and Climate Change Secretary Edward Davey said: “In urban areas, people are often used to sharing their walls and their roofs with their neighbours – and it can make good sense for them to share the way their homes are heated.

“This cash boost and support for local authorities will help supply low-carbon heat to a whole range of buildings such as multi-story apartments, office buildings and social housing – not only providing more efficient heat to buildings, but potentially bringing heating bills down too.”

A list of the winning local authorities are:

  • Birmingham City Council
  • Brighton and Hove City Council
  • Cardiff City Council
  • Cherwell
  • Cheshire East
  • City of Bradford
  • Crawley Borough Council
  • Doncaster Council
  • Halton Borough Council
  • Hampshire County Council
  • Liverpool City Council
  • London Borough of Ealing
  • London Borough of Haringey
  • London Borough of Islington
  • London Borough of Merton
  • London Borough of Sutton
  • Manchester City Council
  • Nottingham City Council
  • Oxford City Council
  • Royal Borough of Kingston upon Thames
  • Runnymede Borough Council
  • Salford City Council
  • Swansea City Council
  • Wycombe District Council

Birmingham City Council bid

One council that received funding was Birmingham City Council. A total of £120,600 was awarded to the council to procure services to:

  • complete an ‘energy master plan’ for Birmingham and identify the strategic locations for combined heat and power networks;
  • complete the necessary work for the preparation of investment documents, business plans, and financial models to develop a heat network in Tyseley, and another for Selly Oak, Edgbaston and Bourneville; and
  • complete energy planning feasibility work for a ‘major regeneration area’ on Icknield Port Loop.

Councillor James McKay, Cabinet Member for a Green, Safe and Smart City at Birmingham City Council, said: “It is hugely encouraging to get the government’s seal of approval for the plans we are developing to make Birmingham’s energy supplies greener, cleaner and cheaper.

“Much has been said about the cost of living crisis that grips society. Heat networks are part of a wider solution, one of the ways in which the council can support residents and businesses to make their day-to-day expenses more manageable.

“The ambition to better understand the possible future mix of Birmingham’s energy supply, including heat networks, was outlined in the Carbon Roadmap which the Green Commission published in November 2013.

“This funding will help take our plans one step closer to reality and place us at the forefront of the heat networks movement nationally.”

Fund runs until March 2015

The remaining pot of grant funding will be allocated through subsequent funding rounds, running to March 2015.

The successful second round of local authorities will be announced by the ‘end of March 2014’.

Find out more about how to apply for the heat network fund.