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Renewable Energy: Urban Areas

Question for Department for Business, Energy and Industrial Strategy

UIN 128213, tabled on 10 December 2020

To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to support projects which produce renewable energy in densely populated urban centres.

Answered on

15 December 2020

The five regional energy hubs in England are supporting the development of low carbon and renewable energy projects at the local level, including those within our towns and cities.

Heat networks, in particular, are best suited to an urban setting.

Heat networks are the only way we can exploit larger-scale renewable and recovered heat sources (like the latent heat from large rivers and urban recovered heat - such as from the London Underground). The Department’s Heat Network Investment Project (HNIP) is investing £320m up to April 2022 to support the construction of heat networks and accelerate the growth of the market. We expect around £1bn of private and other investment to be leveraged by HNIP.

In the March Budget, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced additional £270m of funding for the creation of the Green Heat Network Fund (GHNF). The GHNF is intended to be a targeted successor to BEIS’ Heat Network Investment Project, and to run to 2025, and we believe it will be a significant source of funding for projects in urban areas looking to make use of renewable energy sources. A full public consultation was launched on 30 November, to run until 29 January 2021.

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