1. The Heat Network Investment Project
Nick Allen, Principal Corporate Finance Advisor
BEIS
24 Jan 2019

2. Climate Change requires action!
Source:

3. Heat is the biggest source of carbon emissions
Estimated UK emissions attributed to heat, 2015

4. Options for decarbonising heat are challenging…
ELECTRICITY
HYDROGEN
EMISSIONS REMOVAL
Heat demand is estimated. Courtesy of Imperial College 4

5. … but heat networks can help
Reduce emissions
Reduce bills
Increase resilience
Increase flexibility
Technology agnostic

6. What is a Heat Network?

7. Reducing carbon, reducing cost…

8. …and, uniquely, utilising waste heat and renewables otherwise inaccessible
Water, air, ground
Energy from waste
Industrial waste heat
Buildings
Geothermal
Electrical infrastructure
Tube ventilation shaft

9. If heat networks are so great…
… why don’t they just happen?
High initial capital cost
Relatively complex
Risks too high before operational
Role of the Heat Network Investment Project
Gap funding to help make schemes investable
Drive the market to improve skills and drive down costs
Involve a wider range of investors and clients
Test and learn from innovations
Driving towards the creation of a self-sustaining heat network market

10. Role of the Heat Network Investment Project
Gap funding to help make schemes investable
Drive the market to improve skills and drive down costs
Involve a wider range of investors and clients
Test and learn from innovations
Driving towards the creation of a self-sustaining heat network market
£280 million funding available
Seeking to support projects worth £1-2 billion
Grants or loans
Grants mainly to public sector
Loans mainly to private sector
Funding can cover commercialisation and construction, or just construction
20 Nov 2018

11. Key Roles of Partners
Comprised of a number of professional firms with a demonstrable track record of engaging with investors and supporting project developers to deliver a wide range of infrastructure projects, Triple Point Heat Networks Investment Management includes the following organisations:

12. How does HNIP work Two stage application Projects scored on:
Quick test of eligibility and sufficient development
Full assessment requiring a well developed scheme and significant data input
Projects scored on:
Heat delivered per £ of grant requested
Carbon saved per £ of grant requested
Potential future carbon savings and
Deliverability
Applications will compete with each other at an investment panel – only the best will be funded
20 Nov 2018

13. Timing Launched in October 2018
1st Round applications deadline by late Feb / early March 2019
1st Round decisions in April 2019
Then each quarter thereafter until 2021
20 Nov 2018

14. Relevance to you?
You look after an estate with multiple buildings in one location
You could develop a scheme – talk to us for advice
You look after one or more single buildings
You may be invited to join a scheme – consider it carefully
You are developing a new building
Consider being ‘District Heating ready’ – it will be much easier later
20 Nov 2018

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