Deal facts
- ClientSolihull Metropolitan Borough Council
- SectorHeat networks
- LocationSolihull, West Midlands
- ServiceLocal authority lending
- NWF finance£9.6m
Providing low carbon energy across the town centre
Solihull Council’s innovative new low carbon energy network will provide heating, hot water and electricity to a range of town centre buildings, helping to reduce fuel bills and future-proof against changes in customer energy needs.
The first phase of the network in Solihull will provide heat and power to town centre customers, including Council-owned buildings and education campuses. It is intended that future phases will then connect other buildings in the town centre and link to planned commercial or residential developments in line with the Council’s Town Centre Masterplan.
This is the first heat network to receive funding from the NWF, via a £9.6m loan provided through our Local Authority function. This low-cost long-term financing option will enable the Council and its delivery partners to complete installation of the pipework for the first phase of the project. The project is being delivered by Vital Energi who will design, build, operate and maintain the new network.
A word on the deal
Peter Chalmers, Director in Local Authority Advisory and Lending, said:
This is NWF's first transaction in the heat network sector. NWF is delighted to support Solihull's efforts to achieve net zero by decarbonising heat in the city centre and establishing a model for sustainable energy that can serve as an inspiration for other communities.
NWF’s Local Authority function has deep experience in the heat network space, a key sector for the Fund. NWF looks forward to seeing the Solihull project progress and helping other local authorities across the UK as they advance towards their net zero goals.
"Securing financing from the National Wealth Fund has been instrumental in bringing our ambitious town centre energy network to life. This support allows us to deliver an innovative low-carbon heating solution that will benefit town centre customers whilst helping to future-proof our infrastructure against evolving energy demands. The NWF were extremely helpful throughout the process. Thanks to the NWF Local Authority team, we have not only been able to secure long term and low-cost financing for this project, but their expertise, commitment and support has also helped to ensure the highest standards were maintained across the project.”
Martin Clayton
Head of Investment and Commercial Partnerships at Solihull Council
The £9.6m NWF loan sits alongside a £9.7m DESNZ grant, which collectively funds the construction of an energy centre, 2.3km heat network, and connection of six key anchor customers.
The network will supply 8 GWh of lower carbon heat each year, delivering over 60% carbon savings in the first year of operation at a rate that is competitive with gas costs.
The project aligns with the NWF’s clean energy mandate and supports Government ambitions to increase the use of low carbon heat networks to 20% by 2050.
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