TALKING HEADS/YSELKLA FARMER
Accelerating the electrification of heat
Yselkla Farmer, CEO of BEAMA, stresses the urgent need for accelerated electrification of heat to meet the UK’s Net Zero 2050 target, highlighting the role of effective policies and diverse low-carbon technologies in driving progress.
B
oth the Labour and the Conservative parties’ general election manifestos recommitted the elected party
to deliver the UK’s legally binding Net Zero 2050 target. The consistent top- level support for this objective means that many policy and market initiatives begun during the previous parliament retain their relevance. However, reflecting the new government’s increased ambition, we have seen the launch of a range of new institutions and targets designed to accelerate progress towards the Clean Power 2030 mission. Whilst we are strongly supportive of
this renewed ambition, there remains a range of unanswered questions and lack of a detailed roadmap towards Net Zero. With buildings accounting for around a fifth of UK carbon emissions, there will undoubtedly be a significant role for the energy sector to accelerate electrification and decarbonisation. Innovation and organic change in the
industry will continue to drive progress. However, other developments will rely upon government policy to incentivise uptake. Policy will be most effective where it helps to create conditions for a self-sustaining market, rather than relying too heavily on direct public sector funding all the way to 2050 and beyond. For market growth to align with progress towards Net Zero, policy should ensure that low carbon products are the optimal choice for consumers. In addition to the advantage of
accelerating decarbonisation, the Climate Change Committee predicts that the running cost savings from electrifying heat will outweigh investment costs. Electrification allows us to make use of secure renewable power, and these technologies can form part of a more flexible and efficient energy system. There is much to do to support
the complete decarbonisation of UK buildings. Fortunately, the mature electrified heating market already offers products to facilitate this, in contrast with other sectors where further technological innovations are
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required. Attention must be given to the overall supply chain for electrical and enabling products, essential to delivering net zero buildings in the UK.
Need for consistency BEAMA members have repeatedly spotlighted policy consistency and regulatory coherence as major influences over their investment and allocation of finite manufacturing capacity. Policies strengthening market demand give manufacturers more confidence to invest and more opportunities for skills development, driving growth in the UK’s low carbon economy, a major aim of the government. On improving demand, addressing
some issues identified by the previous government could significantly boost the desirability of low-carbon heat. One is electricity pricing. The price of grid electricity is currently around four times that of mains gas because of a taxation system which favours carbon emitting energy sources, providing a major disincentive for UK households and businesses to choose a low- carbon heating system. Levelling the playing field between these energy sources is not a simple task and must be delivered sensitively to avoid financial hardship for householders. However, progress on this thorny issue is crucial. A useful first step would be the launch of a government consultation to review policy options. Regarding electrification
technology, heat pumps are the highest profile and, given their efficiencies, will be an excellent solution for many homes. Adoption of heat pumps is supported through a range of policies, including reduced VAT and grants. However, broadening these incentives to support other low-carbon electric heating products would ensure greater customer choice to access the right technology for their home.
Other options include high heat
retention storage heaters, heat batteries for heat and hot water, and smart hot water cylinders. These energy-smart appliances provide low-carbon heat and facilitate flexible
Policy will be most effective where it helps to create conditions for a self-sustaining market
energy use. Including these innovative technology options in the VAT relief and grant schemes would make these more accessible to homes where heat pumps are not the optimal solution, such as smaller properties. Greater uptake would also drive further innovation and efficiencies through economies of scale. Running costs for heat batteries can already be highly competitive compared to heat pumps and gas boilers, and the technologies can also be a more achievable ‘soft landing’ for installers. Government and industry should embrace this wider range of technologies. Complementary developments
to support the electrification of heat can come from completion of the smart meter rollout, allowing for a more efficient energy system and supporting more consumer access to energy-smart heating appliances and suitable tariffs. Furthermore, the government’s accelerated power generation and electricity network policies will help to improve the
supply of green electricity and resolve connection issues.
Effi ciency measures The path to Net Zero will be a long journey for some, so we should also remember no-regrets measures to continue upgrading insulation and energy efficiency of homes, alongside hydronic heating systems. Better public information for consumers would underline that energy efficiency measures can deliver benefits now while also preparing homes for the necessary switch to low-carbon heating before 2050. Best practice heating controls minimise wastage of heat. Good heating system design and maintenance are beneficial for the efficiency of any system. For government, any emissions saving today will help the delivery of our national carbon budgets, giving greater room to manoeuvre the UK’s overall net zero transition, while helping to develop the retrofit market, business models and economic growth. These are just some of the many
strands of interventions that are needed on consumer knowledge, availability and affordability of technology, and triggers to make change. We hope to see the mission-driven approach reflected in an updated heat and buildings plan, built on full engagement with industry, to give the clarity that we need. ■
Yselkla Farmer CEO
BEAMA EIBI | SEPTEMBER 2024
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