The government has announced a new £320M fund to develop new heat networks.
The aim is to develop networks across towns and cities so that waste heat from places such as factories, transport networks or power stations can be pumped elsewhere, including into homes.
An Aecom study into heat networks on behalf of the government found that they reduce energy costs by up to 30%. The first £39M will be open to local authorities and public sector bodies to apply for funding for their project by the end of November. The £320M fund will be spread over the next five years.
“Heat networks can significantly improve the efficiency with which heat is provided to our towns and cities, as well as helping to develop local infrastructure and reduce carbon,” said energy minister Baroness Neville-Rolfe.
“The new scheme will help us to develop viable reforms to make the most of the heat we produce and use it effectively to bring bills down for people across the country.
“Heat networks have already been used successfully in the UK, and are popular across Scandinavian cities for keeping homes warm in winter. The money will be invested over the next five years to build low carbon heating systems across England and Wales.”