2017 Report details for project: Heat Networks Investment Project

Project name: Heat Networks Investment Project - there are 3 reports for this project: 2017, 2018, 2019
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Organisation: BEIS (D1198) - see all reports for this organisation
Report year: 2017 (data is from Sept 2016)
Category: Infrastructure - see all reports for this category
Description: The Heat Network Investment Project (HNIP) consists of project pipeline development and time-limited £320 million capital support to build heat networks in England and Wales.
DCA (RAG): Exempt FOI
DCA text: HNIP has made full use of both internal and external (IPA) reviews to ensure that the project was on track prior to the launch of pilot. HNIP is also undertaking lessons learned reviews as well as comissioning an evaluation of the project so that HNIP can learn from the pilot phase and refine the project ahead of Main Scheme launch. Since the the October GMPP return the project has made considerable progress and has successfully launched and delivered the pilot phase, on schedule.
Start date: 2015-11-25
End date: 2021-03-31
Schedule text: The HNIP is being developed in 2 stages, Pilot Phase and Main Scheme The Pilot Phase consists of an initial funding round, delivered through Salix/BEIS and utilising funding allocated to 2016/17 as well as some from 2017/18, to test process and project design. This will conclude on 31st March 2017 The Main Scheme will incorporate learning from the Pilot Phase and will cover the remaining period of the project which runs to 2021. A delivery body for the Main Scheme will be procured through open competition. The aim of the project is to launch the Main Scheme in 2017, but final timings regarding this will be confirmed later in the year.
Baseline: £36.60m
Forecast: £36.60m
Variance: 0.00%
Variance text: Budget variance less than 5%.
Whole Life Cost: £352.70m
WLCost text: As part of the 2015 Spending Review agreement, £320m of capital funding was allocated to BEIS to support investment in heat network projects. The funding comprises £170m of fiscal spend and £150m non-fiscal that does not negatively affect Public Sector Net Borrowing. Of this money £27m has been allotted to the financial year 2016/2017 with the rest profiled each year to 2020/2021. The cost-benefit analysis undertaken for the HNIP Pilot Outline Business Case (in line with Q2) assesses the social NPV for the scheme as a whole at £365m, with 6.5Mt of total carbon savings over the appraisal period. This will be finalised as part of the work on the OBC for the Main Scheme in 2017.
Notes1: Exempt under Section 43 of the Freedom of Information Act 2000 (Commercial Interests)
Sourcefile: IPA_2017.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.