Launch of £300m Fund to Develop Scotland’s Zero Emission Heat Networks

Homes and commercial properties across Scotland are set to benefit from the establishment of a new fund supporting the large scale development and roll out of zero emission heat networks.

Scotland’s Heat Network Fund has been created to support projects where the heat for individual properties is supplied from a communal source. Common in other European countries, there are fewer examples currently in Scotland, however, those in place typically link up homes, schools, workplaces and other buildings.

The programme will support the development and rollout of zero emission heat networks across Scotland. The aim is to stimulate commercial interest, investment and maximise the nation’s potential in the low carbon sector, whilst contributing to progress on reducing greenhouse gas emissions.

The Scottish Government is making £300 million available over the next parliamentary session. Grant funding will be awarded to projects up to a maximum of 50% of the eligible capital expenditure. Projects will be required to demonstrate the additionality of support through the fund, including the level of intervention required to deliver an investable project.

Applications are open to all public and private sector organisations. Proposals will be welcomed from consortia of organisations. Proposed projects must have a location, proof of technology concept, and end user for identified outputs. Projects must be of a large scale and must be based in Scotland.

Zero Carbon Buildings Minister Patrick Harvie said:

‘The Heat Network Fund will accelerate the development of heat networks across Scotland as we move towards our ambitious targets set by the Heat Networks (Scotland) Act 2021.

‘The projects that receive support from the Fund will fully align with the Scottish Government’s aim to eradicate fuel poverty by supplying heat at affordable prices to consumers, which is especially important now when we are seeing record rises in the cost of heating.’

Proposals can be submitted at any time.

(This report was the subject of a GRANTfinder Newsflash.)