GREEN HEAT NETWORK FUND

Rating: The scheme continues to deliver against its objectives, with milestones being met and financial performance broadly on track. Some delays in project implementation may impact the timing of benefits realisation, but these risks are understood and are being actively managed.

Schedule: The project's end-date remains unchanged, with the end of funding phase scheduled for 31/03/2028.

Cost: GHNF WLC has been revised in the updated (2026) GHNF Full Business Case (FBC) to account for the additional budget allocated to the scheme through Phases 1 and 2 of the 2025 Spending Review. The revised WLC will be published in due course.

Source: NISTA Major Projects Annual Report 2025-26 (data)

Rating: Compared to financial year 23/24-Q4, the Infrastructure Project Authority's Delivery Confidence Assessment rating at 24/25-Q4 remained at GREEN. This is primarily due to the following factors: (i) GHNF has now allocated funding to 63 projects in 54 towns and cities, and the scheme is on track to fully deploy its CDEL budget. (ii) Forecast data shows GHNF is on track to meet or exceed its benefit targets. (iii) The GHNF Supplementary Contract is in place in the event that additional CDEL budget is allocated to GHNF.

Schedule: Compared to financial year 23/24-Q4, the project's end-date at 24/25-Q4 increased from 30/06/2028 to 31/03/2030. This is primarily due to the following factors: The revised project end-date reflects the end-date of the recently procured Supplementary GHNF Delivery Partner Contract, which is now in place. The previous end-date reflected the existing GHNF Delivery Partner contract.

Cost: The project's departmentally agreed Whole Life Cost at 24/25-Q4 (measured in £m) is 701. This is primarily due to the following factors: The GHNF WLC comprises of (i) GHNF CDEL grant budget and (ii) internal/other costs associated with administering and evaluating the GHNF.

Source: NISTA Annual Report 2024-25 (data)

Rating: Compared to financial year 22/23-Q4, Senior Responsible Owner's Delivery Confidence Assessment rating at 23/24-Q4 decreased from Amber to Green. This is primarily due to the following factors. GHNF opened to applicants in March 2022 as a 288m capital grant fund. Further capital was secured for the scheme in 2023. This enabled us to extend the scheme and allocate additional funding in line with a strong pipeline and high demand. Having implemented an extension to Delivery Partner contract, the overall delivery confidence is high.

Schedule: Compared to financial year 22/23-Q4, the project's end-date at 23/24-Q4 increased from 2025-03-30 to 2028-06-30. This is primarily due to the following factors. Additional capital allocation was made to GHNF in 2023. As a result, GHNF capital funding is spread over six years - from FY 2022/23 to FY 2027/28. GHNF Delivery Partner contract was extended in light of this. The revised Project End Date is 30/06/2028.

Cost: GHNF Whole Life Cost was re-baselined to reflect additional capital and resource allocation made in 2023.

Source: IPA Annual Report 2023-24 (data)