South Islington Heat Network

Islington Council

South Islington Heat Network

The Investment Proposition

Seeking a range of investment partnership options to co-invest in a £310m expansion of a low carbon heat network. Offers strong long-term income (£1.08bn projected) and an approximate post-tax IRR of 9.5%

Project Info

Asset Class Energy & Decarbonisation
Borough Islington
GDV £180.2m capital expenditure
Project stage/timeline Outline Business Case (further project design to be determined by partners)

Overview

  • Backed by Government policy and grants, £16.85 million invested to date
  • Enabling policy framework and business case in place with UK Government (Department of Energy, Science and Net Zero) and Council
  • Nominal capital cost of £310.2m and total nominal income of £1,081.1m
  • A grant of £26.1m aids initial capital costs, providing a post-tax, post-grant of approximately IRR of 9.5%
  • Will leverage waste heat and new energy centres to serve thousands of homes and commercial users
South Islington Heat Network