Heat network detailed project development
This set of documents is a reference resource for heat network projects that are moving towards commercialisation.
Documents
Details
This guidance, commissioned by BEIS, is a reference resource for heat network projects that are moving towards commercialisation.
The documents are structured around the first 4 cases of HMT鈥檚 鈥楩ive-Case Business Case Model鈥�, which considers the viability of the project from 5 perspectives:
- strategic
- economic
- commercial
- financial
- management
- procurement and state aid
Strategic and commercial guidance
This guidance supports completion of the Strategic Case and Commercial Case for a heat network project:
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Strategic Case - a summary and reference matrix of relevant legislation, policy and strategy, and guidance on key drivers for delivery of heat networks
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Commercial Case:
- the different roles in the delivery of a heat network, and the risks and opportunities associated with each role
- typical contracts used to govern relationships between parties
- delivery models for heat networks, i.e. combinations of role allocations to different parties and the contracts which govern relationship between the parties; and tax and insurance implications for heat networks
Heads of Terms
15 contract heads of terms (HoTs) documents for use by local authorities as a starting point for developing bespoke agreements for particular heat network projects.
Economic and financial guidance
The journey through the development of a Financial Model, which underpins the commercial reality of the Outline Business Case (OBC): use to identify areas where commercial viability of a project can be improved, and where customer protection for the end user can be offered. Topics covered include:
- developing the Techno-Economic Model into the Financial Model
- heat pricing
- revenue streams and avoided costs 鈥� maximising opportunities
Procurement and state aid
An examination of the public law factors that will govern a district heating scheme, with practical advice alongside the legal analysis. It provides case study examples and practical tips for managing the often complex, and occasionally over-lapping, public law issues that arise on a district heating scheme. Topics covered include:
- 鈥减辞飞别谤蝉鈥�
- procurement law
- state aid