UK Infrastructure Bank partnership with Green Heat Network Fund
The UK Infrastructure Bank is partnering with the Department for Energy Security and Net Zero (DESNZ) to support local authority applicants to the £288 million Green Heat Network Fund (GHNF). The partnership means that local authorities seeking funding for new heat network projects through the GHNF can also apply for preferential rate lending from the Bank through the same process.
The Green Heat Network Fund
The GHNF is the UK government’s 3 year £288 million capital grant fund that will support:
- the commercialisation and construction of new low and zero carbon heat networks (including the supply of cooling)
- the retrofitting and expansion of existing heat networks.
It aims to develop and grow the heat network market and to address some of the challenges of decarbonising the UK’s heat sector.
The Bank’s Local Authority offer
Local Authorities applying to the GHNF can access lending from the Bank at preferential rates on the basis of the same application information submitted to the GHNF grant funding scheme.
- The Bank currently offers local authorities loans at the relevant gilt rate + 40bps (40bps lower than PWLB in most cases).
- Eligible local authority applications for the GHNF will be automatically shared with the Bank, which will review each application in line with its investment principles.
- A Bank lending decision would be made based on an assessment of the information submitted in the GHNF application, although it would be approved via a separate process.
The Bank also offers private-sector financing to heat network projects. If you are a private sector applicant interested in exploring Bank lending please make an enquiry.