Heat Network Support Unit: support guidance

Feasibility study and outline business case support

The HNSU supports the development of new low or zero emission heat network projects. Communal heating systems or the decarbonisation of existing fossil fuelled heat networks are not supported at this time. Support for the expansion of existing heat networks will be considered on a case-by-case basis.

For projects at the pre-capital stage, the HNSU can offer the following grant funding:

• up to 100% of a detailed feasibility study up to a value not exceeding £50,000. Applicants have the option to utilise either their own consultants or consultants appointed under the Zero Waste Scotland Feasibility Framework.
• up to 50% match funding for outline business cases up to a value not exceeding £75,000. It is expected that successful applicants will procure their own consultants for this stage.
• commercialisation costs, with the amount of funding determined on a case-by-case basis. Funding may be supported through the HNSU or Scotland's Heat Network Fund depending on the project’s stage

The support available is as follows:

Advisory only

Advice, guidance or support in a ‘critical friend’ capacity.

Advisory and funding

Grant funding for the costs associated with the conduction of a detailed feasibility study or detailed project development (i.e. Outline Business Case) with additional advisory support from HNSU partners.

To provide Scottish Government with assurances that grant outcomes will be achieved, funding is conditional on the project accepting an assigned representative from our partner organisations Scottish Futures Trust and Zero Waste Scotland. Funding is also conditional on the grantee reporting project progress to the HNSU as per the Technical Evaluation for Low Carbon Heating and District Heating Networks Framework or the Grant Offer Letter guidelines.

For feasibility studies, applicants have the option to use either their own consultants or consultants appointed under the ‘Technical Evaluation for Low Carbon Heating and District Heating Networks Framework’. This framework has been procured and is owned by Zero Waste Scotland, which is fully funded and owned by the Scottish Government. The framework supports the development of district heating feasibility studies. It is open to all successful applicants to the HNSU fund, under the terms and conditions of the framework. For outline business cases and commercialisation, it is expected that successful applicants will procure their own consultants.

To receive a copy of the application form and guidance, email heatnetworksupport@gov.scot.