ADE: ‘Energy Bill to drive paradigm shift in modernising the way we heat towns and cities’

With the introduction of long-awaited regulation for heat networks and the establishment of a Future System Operator (FSO) to oversee electricity and gas markets, the Bill is a critical step in accelerating the growth of low carbon technologies and creating a fairer and more affordable energy market.In terms of heat networks, the ADE is pleased to see the government set out how it hopes to establish long-awaited regulatory powers, a clear market framework and steps to progress heat network zoning, all of which it stresses are essential to delivering the 55,000km of primary pipe network that will need to be installed to ensure heat networks can provide nearly 20% of heat in UK buildings by 2050. The ADE notes heat networks could unlock up to £50 billion of investment and create tens of thousands of jobs, at costs 40% cheaper than decarbonising heating through relying on individual air source heat pumps. Similarly, the trade organisation welcomes the Energy Bill setting out how the Government aims to enable a smarter and more flexible energy market by creating an Independent System Operator and Planner (ISOP), developing a ‘smart mandate’ for low carbon technologies such as heat pumps and domestic batteries, and establishing a licensing regime for the critical role flexibility service providers will play in the journey towards net zero. The ADE emphasises that a more flexible energy system would drastically reduce the need for expensive power grid upgrades to support intermittent renewables and could generate wider electricity system financial savings of as much as £10 billion pounds every year by 2050.The ADE notes the inclusion of critical advancements for low carbon technologies in both the Bill and accompanying policy proposals to meet a ‘smart mandate’ is highly encouraging for the energy flexibility sector to flourish in the coming decade.Caroline Bragg, Director of Policy and Research at the ADE, said:The introduction of the Energy Security Bill to Parliament is a landmark moment for decentralised energy. With new primary legislation to support a smarter energy system and to place heat networks on an equal footing to other infrastructure, this is a once-in-a-decade opportunity to get back on track and place decentralised energy technologies at the heart of the UK's work to strengthen energy security and deliver net zero.Critically, the Government has confirmed heat network zoning will be rolled out across England, which will overcome existing barriers to deployment and drive a paradigm shift in modernising the way we heat our towns and cities. The ADE greatly looks forward to working with MPs and peers in this area and others during the passage of the Bill through Parliament.Despite welcoming the raft of successes for the decentralised energy industry set out in the Bill, the ADE notes one glaring omission in the suite of measures to bolster the UK’s energy security credentials – a complete lack of any energy efficiency commitments to help protect the country’s households against continually rising energy bills and cold homes in the coming winter.Chris Friedler, Energy Efficiency Policy Manager at the ADE, said:The total lack of any progress for energy efficiency within the Bill means that government policy is effectively frozen in this space. With a difficult winter incoming and the current absence of energy efficiency policy highlighted as one of the biggest gaps in addressing climate change, the government has unfortunately chosen to deprive households of new measures to help their bills, security and environment. We must urgently see new action launched to enforce minimum standards for private rented buildings at the very least.Notes to editors:About Heat Networks A heat network scheme comprises a network of insulated pipes used to deliver heat from the point of generation, in the form of hot water or steam, to an end user. They provide the means to transport heat efficiently. Heat networks can be supplied with heat from a diverse range of sources including power stations, waste-to-energy facilities, biomass boilers and CHP plants, gas-fired CHP units, heat pumps, electric boilers and even solar thermal arrays.About Energy Efficiency Energy efficiency in buildings reduces demand for the heating and power of the indoor space through a combination of measures, such as insulation, draught proofing, and LED lighting. The cheapest, safest and most secure form of energy is the energy we do not use. That is why energy efficiency must be allowed to compete on equal terms with new supply capacity. Energy efficiency means the construction of fewer new generating plants and reduced network infrastructure investment combined with greater resilience and lower carbon emissions. About Flexibility  Flexibility is used to balance supply and demand across the energy system. It can include, for example, energy users responding to a signal to turn down their demand which helps balance supply and demand without the need for additional generation (e.g. power stations). Energy users can also be asked to use excess energy from the grid, for example on a windy day.  About CHPCombined heat and power (CHP), integrates the production of usable heat and power (electricity), in one single, highly efficient process. Delivering a minimum of 10% energy savings, it makes the very best use of renewable and fossil fuels. This efficiency means less stress on precious fuel resources and lower carbon emissions.CHP works by recovering heat from the power generation process and putting it to work in industry, buildings and homes, often delivering significant cost and CO2 savings. CHP currently provides 7% of UK electricity and in 2010 provided emissions savings of 13 million tonnes of CO2.About the ADE The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero. We have over 150 members organisations and together we are driving the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart. Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system. For this to happen, energy must work for the user. At the ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better.