Estimating the cost reduction impact of the heat network investment project on future heat networks

This document describes an evaluation of the Heat Networks Investment Project (HNIP), which is designed to support the UK's heat network industry in achieving low carbon targets with a £320 million budget. The HNIP's goals include reducing costs and CO2 emissions, and promoting the deployment of heat networks. The evaluation employed literature reviews, expert interviews, and model adaptation to assess both direct and indirect cost reduction impacts. Findings suggest that the HNIP could lead to savings between £90-370 million by 2050 and support 19-75% of heat network projects from 2021-2025. Indirect benefits such as faster deployment, industry learning, and lower financing costs could result in additional savings of £70 million to £800 million by 2050. The evaluation concludes that the HNIP is likely to achieve significant cost reductions, but the results may be understated and further interventions could be necessary for more substantial cost savings. It also highlights the need for a more comprehensive analysis to fully understand the HNIP's impacts on the heat network industry. **This summary was written by an AI model and therefore should not be considered a definitive summary of the report. If you are aware of inaccuracies, please email evaluation.registry@cabinetoffice.gov.uk.**

Description

• Lead department: Department for Business, Energy & Industrial Strategy
• Evaluation stage: A complete evaluation report
• Other departments: No other departments listed
• Evaluation types: Process evaluation
• Process methods: Other
• Grant information: This intervention is not distributing funding via a grant
• Government Major Project information: This intervention is not a major project
• Policies: No policies provided

Event Dates

• Event Name: Publication of final results
• Event date: January 2018

Evaluation Costs

• Cost: Not provided

Evaluation sharing

• Link(s) to published report(s): Yes
• Links to evaluation plans: No link provided
• Findings: Not provided
• Permission to share confirmed: Yes