Scotland’s Heat Network Fund: optimisation study grant funding - how to apply

Objectives

The Efficiency Funding stream aims to:

• reduce carbon emissions by improving the efficiency of heat networks in Scotland and lowering energy consumption
• reduce customer detriment by ensuring a reliable and affordable supply of heat from existing heat networks
• identify potential new clean heat sources for existing heat networks that currently rely on fossil fuels

Protecting customers

Scotland has a target to reduce fuel poverty to no more than 5% of households by 2040.

Heat network customers are particularly vulnerable to inefficiency. This is because they have limited ability to switch supplier, and they share system costs with other customers.

You must demonstrate that your optimisation study will consider impacts of reducing customer detriment, for example, through:

• increasing the reliability of supply
• reducing operating costs or bills for customers
• protecting customers from potential future cost increases

Reducing carbon emissions

Reducing carbon emissions and reaching net zero by 2045 is a key priority for the Scottish Government.

You can improve the efficiency of a heat network by reducing heat loss during distribution and optimising performance. This reduces the amount of energy needed, often gas for boilers or gas combined heat and power (CHPs), which in turn reduces carbon emissions.

Your application must show how your optimisation study will seek to reduce carbon emissions by lowering energy consumption. Your optimisation study must also assess potential clean heat source options to support Scotland's net zero targets.