Policy paper: Heat Networks Investment Project (HNIP)

The supported heat network projects provide heat to approximately 5,000 domestic customers and 50 non-domestic buildings. Of the domestic customers on the supported networks, approximately 2,500 will see bill savings against the counterfactual heat source and, of the non-domestic customers, 19 will see savings. A total of 216,324t CO2 will be saved over the next 15 years, across all 9 heat networks. Total heat supplied annually by these networks will be around 85,000 MWh/year.

Background on HNIP and pilot

Heat networks form an important part of our plan to reduce carbon and cut heating bills for customers (domestic and commercial). They provide a unique opportunity to exploit larger scale – and often lower cost – renewable and recovered heat sources that otherwise cannot be used. These sources include heat recovered from industry and urban infrastructure, from canals and rivers or energy from waste plants.

The £320m Heat Networks Investment Project (HNIP) capital investment programme is expected to support up to 200 projects by 2021 through grants and loans and other mechanisms and to lever in up to £2bn of wider investment, reducing bills, cutting carbon and forming a key part of wider urban regeneration in many locations. A consultation was carried out on this funding in 2016:

Details of the HNIP pilot:

The HNIP pilot ran from October 2016 to March 2017. Learning from the pilot is shaping the design and delivery of the main HNIP funding scheme which BEIS aims to launch by the end of 2017. For the pilot phase, applications were limited to local authorities (and other public sector bodies). We expect that the main scheme will have a wider scope. Eligible sponsors could include the private sector, community groups and not-for-profit groups (see consultation for more options).

Many of the successful projects were supported by BEIS’s Heat Networks Delivery Unit (HNDU). HNDU was set up to provide support (grant funding and guidance) to local authorities in England and Wales to progress the development stages of heat networks projects from heat mapping through to early commercialisation.

HNDU’s Round 7 funding is open until December 2017, subject to budget availability. For more information on Round 7 or on previous funding rounds, see Heat networks delivery funding or email the Heat Networks Delivery Unit at hndu@decc.gsi.gov.uk.

Policy paper: National measurement strategy

This strategy sets out a framework for our national measurement system which provides UK industry with world-leading measurement science and technology.

The strategy focuses on 4 themes:

  • investing in a world-leading measurement infrastructure
  • ensuring good policy, standards and regulations
  • getting better connected to our users
  • improving the UK’s measurement skills

Policy paper: Updated short-term traded carbon values used for UK policy appraisal (2016)

BEIS’s short-term traded carbon values for UK public policy appraisal are used for valuing the impact of government policies on emissions in the traded sector, that is those sectors covered by the EU Emissions Trading System (EU ETS). Short-term values quoted in this paper correspond to the period up to 2030 and long-term values correspond to the period post-2030.

Policy paper: Second CFD Allocation Round – Statutory Notices

This page holds the statutory notices to launch the second CFD Allocation Round Budget Notice

Budget Notice & Accompanying Note

The Budget Notice sets out information on budget, administrative strike prices, delivery years and details of the maxima applying to the Second CFD Allocation Round. Eligible projects will compete for an available budget of £290m for delivery years 2021/22 and 2022/23. The Accompanying Note provides more detailed explanation about the information in the Budget Notice.

Allocation Round Notice

The Allocation Round Notice confirms key dates for the second CFD Allocation Round as well as delivery years and eligible technologies.

Standard Terms Notice

This sets out the way in which the CFD Counterparty must use the information in the CFD notification to apply or complete the standard terms and which standard terms can be used by the CFD Counterparty to offer a CFD in that Allocation Round.

Counterparty Costs Notice

CFD applicants may apply to the CFD Counterparty for minor and necessary modifications of the CFD standard terms.

This notice sets out the threshold above which the costs likely to be incurred by the CFD Counterparty as a result of the modification mean that it would not be considered as minor and is set at £12,000 in line with the first round.

Allocation Framework Notice

This document identifies to the Low Carbon Contracts Company and the Delivery Body the Allocation Framework that applies to the second Allocation Round.

Policy paper: Midlands: Growth Deals

Growth Deals provide funds to local enterprise partnerships for projects that benefit the local area and economy.

The 10 local enterprise partnerships in the Midlands are:

  • Black Country
  • Coventry and Warwickshire
  • D2N2 (Derby, Derbyshire, Nottingham, Nottinghamshire)
  • Greater Birmingham and Solihull
  • Greater Lincolnshire
  • Leicester and Leicestershire
  • South East Midlands
  • Stoke-on-Trent and Staffordshire
  • The Marches
  • Worcestershire

Policy paper: Midlands Engine strategy

The Midlands Engine strategy is a demonstration of the government’s commitment to making the Midlands a powerful engine for economic growth. Stretching from Shropshire to Lincolnshire, with the M1, M6, and most of our major railway lines running through it, the Midlands sits at the very heart of the UK economy.

Building on our modern Industrial Strategy, the Midlands Engine strategy sets out the actions we are taking to address productivity barriers across the Midlands, enabling businesses to create more jobs, export more goods and services, and grow their productivity.