£100bn in UK clean energy infrastructure

The UK’s first investor-funded ground source heat pump network has broken ground in South Wales. Installed by British heat pump manufacturers Kensa and backed by funds managed by Octopus Energy’s renewable arm, Octopus Energy Generation, the project is set to power millions of homes and kickstarts a new £100 billion UK asset class in clean energy infrastructure.

Funded networks, like the one being installed for 114 new homes at the Parc Eirin development in Tonyrefail, could be a cornerstone of the UK’s energy transition. By 2040, 250,000 homes a year are expected to connect to one of these networks.

The funded network model creates a new, subsidy-free way to install clean heat, aiming to make it easier households to benefit from the high-efficiency and reliability of ground source heat pump technology.

Once complete, each Parc Eirin property will be fitted with a compact Kensa Shoebox NX ground source heat pump, housed inside the property like a traditional gas boiler.

This shared underground infrastructure mirrors the way existing utilities like water, gas, and broadband are delivered, where the customer doesn’t have to pay the upfront installation cost.

The system uses underground pipes connected to a compact heat pump inside each home, offering the familiarity of a gas boiler but with lower running costs and reduced carbon emissions.

The renewable heating method has been successfully fitted in thousands of new and existing UK homes, including over 100 other properties at the aforementioned Parc Eirin, completed during a previous phase of the development.

Each new property from this latest phase will feature a ground source heat pump, solar panels, and battery storage, with all works expected to be completed by the end of 2027.

Tirion Homes, alongside contractor Morganstone, is delivering the new homes. The not-for-profit housing provider received funding from the Development Bank of Wales and the Welsh Government to complete this phase of the Parc Eirin development.

Tamsin Lishman, CEO at Kensa, said:

“Kensa’s unlocking of third-party institutional investment is a major milestone for ground source heat pump deployment and will unlock access to deliver energy-secure heating for millions of homes, whether new build or existing homes.

“By turning ground source infrastructure into an attractive investable asset for pension funds, we can address the financial barriers to adoption and empower the installation of highly efficient and affordable heating and hot water systems that cut both energy bills and carbon emissions.

“At Kensa, we are proud to be working with Tirion Homes, Octopus Energy Generation, and the Welsh Government on this project. Parc Eirin is a flagship initiative showing how we can deliver game-changing renewable heating at scale.”

Image credit: Kensa