Triple Point Heat Networks Investment Management, the delivery partner for the Department for Business, Energy and Industrial Strategy led Heat Networks Investment Project (HNIP), is pleased to announce the first two funding awards for the construction of heat networks in Wales.
Heat networks schemes in Bridgend and Cardiff have been awarded just under £8million to support commercialisation and construction.
Bridgend County Council has received a £1.2 million commercialisation and construction grant for a heat network that will deliver heat to a number of public sector buildings in the town center.
Importantly, the heat network has been designed to enable future expansion to additional properties in the local area, including businesses and residential units.
Key objectives of the scheme are to continue to provide reduced energy costs for consumers, provide carbon emissions savings compared to alternative strategies and to further decarbonise heat supplies over time.
Cardiff Council have been successful in receiving a £6.6 million construction grant for the Cardiff Heat Network which will utilise heat from a local Energy from Waste plant.
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Saving nearly 1,800 tonnes of carbon each year, Phase 1 of the scheme will deliver heat to 11 commercial and public sector buildings with the ability to expand further. The proposed Cardiff Heat Network begins at Trident Park Energy Recovery Facility in Cardiff Bay, spreading across the Bay area before, as part of a later phase, crossing the main Cardiff to London railway line.
A lower proportion of residents in Wales are supplied by heat networks compared to the UK overall. However, there is a substantial unexploited opportunity.
The Heat Networks Investment Project is investing £320 million of support to individual projects across England and Wales and is open for applications.
The Welsh Government has set ambitious targets to operate at close to zero emissions by 2050. With 9% of Welsh emissions coming from buildings, this will certainly require a substantial change in how buildings are heated in the future.
Heat networks are expected to be crucial to delivering the Welsh carbon emissions targets and the milestone investment announced today by Triple Point Heat Networks Investment Management recognises this.
Heat networks (sometimes referred to as district heating) are a proven, cost-effective way of providing reliable low carbon heat at a fair price to consumers, while supporting local regeneration.
They are a distribution system of pipes that take heat from a centralised source and deliver it to a number of different buildings that can easily connect to new, lower carbon heat sources in the future.
With 35% of people in Wales living in rural areas, decarbonising heat is a particular challenge. Heat networks offer a suitable for solution for areas with sufficiently high heat density. The Welsh Government has therefore identified Priority Areas for District Heat Networks in 14 towns and cities across Wales, including Bridgend and Cardiff.
Minister of State for Energy and Clean Growth Kwasi Kwarteng said: “These projects in Wales will help ensure that low-carbon sources of heating are available across the UK.
“Projects in Bridgend and Cardiff will help connect as many homes and businesses as possible to low-carbon affordable heating – by cutting bills and emissions we can achieve our net-zero target in a way that works for residents across the UK.”
Secretary of State for Wales, Simon Hart adds: “This £8 million investment will help heat hundreds of homes and buildings using cheaper, greener energy across Bridgend and Cardiff. It also marks another step forward for our ambitious Clean Growth Strategy and moves us closer to our target of net-zero greenhouse gas emissions by 2050.”