The Association for Decentralised Energy
The revival of the Energy Security Bill is an opportunity that cannot be squandered; Government must now deliver on decentralised energy to make 2023 a turning point in tackling the energy crisis
That’s the call from the Association for Decentralised Energy (ADE), which welcomes the long-awaited return of the Bill. The trade association, which represents more than 150 organisations from across industry, has been persistently calling for the Bill to revolutionise the decentralised energy sector’s role in delivering the UK’s climate ambitions and strengthening energy security amid the energy price crisis.
Through the introduction of long-awaited regulation for heat networks, the establishment of a Future System Operator (FSO) to oversee electricity and gas markets and the promised deployment of widespread energy efficiency measures, the Bill could see the UK lead forward in accelerating the growth of low carbon technologies and creating a fairer and more affordable energy market for all.
The ADE notes the Bill lays out essential detail on heat network zoning to put 55,000km of new pipes in the ground, allowing networks to provide nearly 20% of heat in UK buildings by 2050, as well as sets out the path to a smarter and more flexible energy market by creating an Independent System Operator and Planner (ISOP) and by developing a ‘smart mandate’ for low carbon technologies such as heat pumps and domestic batteries.
As it stands, there is one glaring omission in the Bill - new, rigorous energy efficiency standards to ensure that the UK’s buildings are not cold and drafty, but warm, safe and comfortable.
Jonny Bairstow, Head of External Affairs at the ADE, said: “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. A more flexible grid could save as much as £10 billion pounds every year by 2050 by avoiding the need for expensive grid upgrades as we decarbonise. Meaningful energy efficiency deployment could mean the country’s coldest and most vulnerable families won’t have to choose between freezing or starving next winter. The Bill is the key to all of this, and we cannot afford to see its progress stall again.”
As the Bill stands, the ADE highlights 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. As households struggle to pay their bills and as energy demand continues to soar in the face of the climate catastrophe, this is a worrying policy void in a Bill that boldly sets out to help protect energy security.
Caroline Bragg, Director of Policy and Research at the ADE, said: “The reintroduction 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. The ADE has been deeply engaged with MPs and peers in this area and others while the Bill was paused, and will continue to closely work with key decisionmakers during the passage of the Bill through Parliament.”