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UK: Funding for decentralised heating schemes

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The Homes and Communities Agency (HCA) has today confirmed the recipients of an additional £4.8m funding from Communities and Local Government (CLG) for decentralised community heating schemes created through the HCA’s Low Carbon Infrastructure Fund (LCIF), which will be allocated to three schemes in Coventry, Nottingham and Leeds.
A joint initiative between the national housing and regeneration agency, CLG and the Department of Energy and Climate Change (DECC), LCIF enables new and existing homes to be connected to low carbon community heating networks that use more environmentally friendly sources of energy than traditional methods to provide heat and power to homes, shops and businesses nearby. This new funding is in addition to the £21m announced last year by the HCA for 13 pioneering community heating projects around the country.

The three local authority-led schemes to receive a share of the additional £4.8m are:
  • Coventry City Council– £2.3m to provide heating to new developments within the city using waste energy from a nearby waste disposal company. Parts of the Friargate regeneration area, new campus buildings for Coventry University, council buildings and new homes in the new Swanswell development to the north of the city centre will benefit from this district heating scheme.
  • Nottingham City Council- £1.8m to extend district heating scheme created in Southside Regeneration Area to help alleviate fuel poverty for over 3,500 households and offices/businesses in the Island Street, Meadows and Southside areas. The scheme will connect into the London Road Heat Station in Nottingham.
  • Leeds City Council- £0.7m to enable the purchase and installation of a Combined Heat and Power plant to the Yarn Street, Aire Valley Development, servicing 221 homes. This is in addition to £1m awarded through LCIF last year to provide a new district heating network supplying Combined Heat and Power energy from waste plant and micro-technologies that will power around 280 new homes in the area.
Steve Carr, head of new business and economics at the Homes and Communities Agency said: “The Low Carbon Infrastructure Fund Programme (LCIF) is bringing the benefits of decentralised energy generation to local communities. By extending these existing LCIF projects we can help these local authorities and their partners to provide more efficient, cleaner and cheaper energy to local people.”

Schemes selected to receive funding are required to meet the following criteria:
  • Exemplar status – for instance, size of scheme, support to new and existing homes, technologies deployed.
  • Affordable heat and power – provisions to protect the fuel poor.
  • Fuel diversity – use of renewables or extending the efficiency of fossil fuels.
  • Readiness – ability to allocate and spend the fund within two years.
  • Leverage – commitment of funding or assets from other project partners.
This additional £4.8m funding was announced by Communities Secretary John Denham in his speech - 'The Green Councils of the Future' - during the Local Action on Climate Change Summit in 2009. The full speech can be viewed here.

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