Energy UK response to exploring the role of alternative clean heating solutions

Executive Summary

According to the Climate Change Committee, electricity will be the largest source of low-carbon energy for heating. Energy UK therefore believes that the Government should focus its heat decarbonisation policy on the growth of electrified low-carbon technology, and growth in the low-carbon heat networks sector. While Energy UK is technology neutral, and supports innovation across all forms of heat decarbonisation, it is important to adopt a strategic approach to the decarbonisation of heat to ensure a cost-effective transition for customers that aligns with the pathways set out by the Government and Climate Change Committee, and so the Government should focus on adopting policies that further these objectives.

Should the Government introduce an obligation on fuel suppliers that aims to support the expansion of clean heat, it must include all forms of low-carbon electricity sources in heating use to deliver the most effective use of the obligation for decarbonising oil-heated homes. Energy UK would not support a Renewable Liquid Heating Fuel Obligation unless it was expanded in this way. Crucially, should there be an obligation, it must not be paid for through energy bills, nor should it displace the current trajectory of heating electrification and expansion of low-carbon heat networks. These steps would safeguard against negative impacts upon households and emission reduction targets, while supporting the growth of lower-cost and lower-emission heating solutions.

Ensuring a focus on electrification will:

• Support the largest source of energy for low-carbon heating
• Recognise the potential for future innovation in the off-gas grid heat decarbonisation space
• Align with the focus on electrification within the Warm Homes Plan
• Align with the development of supporting infrastructure of electrified heat
• Support a wider range of households
• Support a wider range of technology types