Learn about BHIVE in our overview document.

The Department for Energy Security and Net Zero established a Dynamic Purchasing System (“DPS”) for heat networks – BHIVE. The Department has confirmed the extension of BHIVE for 2 years until 31st March 2025. BHIVE will allow public sector heat network owners/developers in England and Wales to procure funding and funding-related services for their heat network projects from a range of potential funders.

UK heat networks represent one of the biggest growth potentials for energy networks in Europe. The Heat Networks Industry Council estimate the investment potential to be between £60-80billion by 2050.

The Green Heat Network Fund is open for applications and encourages applicants to consider private sector investment alongside grant funding to support the commercialisation and construction of heat networks in England. Initially a £288 million fund, its popularity has meant further funding has been made available.

All public sector applicants seeking provisional GHNF awards must notify the BHIVE to consider suitability of the project for third party funding and this should be the preferred method for seeking third party finance for such projects.

The Heat Network Investment Project (HNIP) was a £320m fund that provided commercialisation and construction funding to heat networks in England and Wales to stimulate increased external investment to create a self-sustaining heat network market. These projects may wish to refinance or access private sector investment as they grow via BHIVE.

BHIVE will play a key part in creating a market that is economically attractive to investors, delivers and sustains jobs, exports and economic benefits and continues to promote the UK as one of the top global investment destinations.

A DPS is a public sector sourcing tool for common goods and services under regulation 34 (Dynamic Purchasing Systems) of the PCR 2015. Funding Providers can apply to join the DPS at any point and do not require any special IT equipment as a DPS eliminates unnecessary up-front activity for the bidder.

Who can use BHIVE?

BHIVE will be available to all Public Sector Bodies in England and Wales (“Contracting Authorities”). This includes:

  • Central Government Departments, Arm’s Length Bodies and Executive Agencies
  • Non Departmental Public Bodies
  • Devolved administrations
  • Local Authorities
  • NHS bodies
  • Charities
  • Universities, colleges, schools, further education providers

BHIVE is open to Contracting Authorities wanting to raise funding for their heat network projects to:

  • Finance a new heat network
  • Finance the expansion of an existing heat network, or
  • Facilitate the sale of part, or all, of an investment in a mature heat network – for example, where a Contracting Authority wishes to sell its stake in an operational heat network. This could also be part of a wider refinancing of the project.

BHIVE is not limited to projects receiving funding from HNIP or from the Heat Network Delivery Unit (HNDU) – it is also open to customers who do not expect to receive any funding from either of these government schemes.

What funding is available within BHIVE?

The funding categories available under BHIVE are divided in to two Lots, as follows:

  • Lot 1: Equity Finance
  • Lot 2: Asset Finance

In addition to the provision of the funding itself, Contracting Authorities may also ask Funding Providers to provide a range of services which are ancillary to the funding under Lot 1. Examples of these services are set out in the guidance documents.

What are the benefits of BHIVE?

BHIVE will provide an effective way for Funding Providers to access heat network funding opportunities and has the potential to deliver a number of significant benefits to the market:

Accessibility: By providing a central market place of Funding Providers, all of whom have expressed an interest in funding heat networks and demonstrated that they have access to funds and the associated services to execute fund raising, BHIVE will provide an efficient route for Contracting Authorities to access funding and funding-related services for their heat network projects.

Standardisation: Over time, and in conjunction with the Standardised Due Diligence Set (SDDS) and the Sales, Operations and Maintenance Set (SOMS) developed by TP Heat Networks, BHIVE will help to reduce the timescales and costs of funder due diligence and approvals and make for a more efficient fund raising process.

Flexibility: BHIVE will be diverse enough to provide a wide range of skills and experience alongside the funding, and potentially facilitate the creation of a secondary investment market.

Value for Money: Through competitions for individual projects, BHIVE will provide the means for Contracting Authorities to access the most economically advantageous terms for their project, with the optimum capital structure and lowest cost of capital.

In addition, the use of a DPS will provide benefits to both Funding Providers and Contracting Authorities:

  • A simpler, quicker process for Funding Providers to get on to the DPS.
  • A faster process for Contracting Authorities to access Funding Providers.
  • Use of an automated, electronic process, to streamline procurement.
  • A more flexible way for Funding Providers to join and update responses at any point.

How to use BHIVE

If you are a Funding Provider please click the ‘investor & asset finance’ box below to access the DPS.

If you would like to use BHIVE to run a mini-competition / access Funding Providers, please click on the customer box to contact us for more information on how to use BHIVE to support your scheme.

Guidance, Policies and Agreements

Below are the BHIVE guidance materials and supporting documents.


Lot 1:

  • Amber Infrastructure Limited (Single Entity)
  • Amber Infrastructure Limited (Fund: The Mayor of London’s Energy Efficiency Fund LP)
  • Amber Infrastructure Limited (Fund: IPP Investments Limited Partnership)
  • Asper Investment Management Ltd
  • Calisen Holdco 3 Ltd
  • Downing LLP
  • E.ON UK Infrastructure Services Limited
  • Equitix Holdings Limited
  • Fortum Power and Heat Oy
  • Greencoat Capital LLP
  • Pinnacle Power Limited (Fund: PP Esco DivisionCo Ltd)
  • Pinnacle Power Limited (Fund: PP ESCO HOLDCO LTD)
  • Plug Me In (Investments) Limited
  • SMBC Leasing (UK) Limited
  • SSE Heat Networks Limited
  • Sustainable Development Capital LLP
  • Triple Point Investment Management LLP (Fund: Triple Point Energy Efficiency Infrastructure Company Plc)
  • Vital Energi Utilities Ltd


Lot 2:

  • Calisen Holdco 3 Ltd
  • PEAC (UK) Limited
  • Plug Me In (Investments) Limited
  • SMBC Leasing (UK) Limited
  • Triple Point Lease Partners
  • TP Leasing Limited

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