Funding Structures

Energy infrastructure projects can come in a variety of sizes and with varying drivers. It is important to create a funding structure which compliments your long-term strategic ambitions.

Funding options to suit your project

Creating an effective funding structure is a core part of the commercialisation process and, depending on the sector, can involve different forms of funding ranging from customer finance for organisations who want to retain full control, third party ownership for organisations who wish to mitigate risk, or a joint venture which could involve a combination of both.

Find out about one of our ESCo projects - Yarn Street H2010

Yarn Street H2010
Yarn Street Houses 19 (2)

PSDS Funding

PSDS stands for Public Sector Decarbonisation Scheme, which is a grant scheme from the Government to inject capital into low carbon schemes for public sector organisations, such as schools, hospitals and local councils. Financed by Salix, PSDS provides up to 100% grant funding for any low or zero carbon initiatives that meet the eligibility requirements.


Third Party Owned ESCo

An agreement where the project sponsor agrees that a Third Party will deliver and own the heat network through an Energy Services Company. This is an attractive option for organisations who may not have long term interests in a development and wish to transfer long term risk and responsibility to a specialised experienced company to manage the project.

Energy Services Company (ESCo)
Vital Energi Third Party Owned Esco


The project sponsor retains ownership, but grants a concession over a fixed term. The successful contractor will then operate the ESCo under the terms of this concession until the contract reaches its conclusion, after which responsibility reverts to the sponsor.

Energy performance contracts
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Joint Venture

This option creates a partnership where the project sponsor and their partner create a jointly owned ESCo. This can be a good option for sponsor organisations who lack some of the specialist knowledge needed to fully run an ESCo but would like to continue their involvement and influence.

The Glenrothes Energy Network
Glenrothes Ceremony1

Customer Owned ESCo

The sponsor creates an ESCo which they wholly own. To achieve this a sponsor must have access to specialist knowledge and skills to create the long-term business case, funding structure, project delivery and long-term asset management.

Leeds PIPES Network
Leeds Launch 3 546466
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