Utility Week

10 | 2ND - 8TH AUGUST 2019 | UTILITY WEEK Utility of the Future: climate change Towards net zero carbon Utility of the Future Climate change I f there is one aspect of the route to achiev- ing net zero that all can agree on, it's the need to reinvigorate policy and accelerate actions to tackle energy e ciency. The widespread deployment of energy e ciency measures across the UK's build- ings is a key pillar to meet net zero green- house gas emissions by 2050, and to tackle fuel poverty and cut energy bills. Energy e ciency investment also has the potential to unlock substantial long-term economic returns – for every £1 spent on insulating the fabric of a building, £3 is generated in eco- nomic beneƒ ts. The government has an ambition in this area, published in the 2017 Clean Growth Strategy, to liˆ the e ciency of all new homes in England to an energy performance certiƒ cate grade C or higher by 2035. Cur- rently just 15 per cent of homes in the UK ƒ t into this category. Alongside this it wants industry to reduce energy consumption by It's time to get real about energy effi ciency Insulating buildings is essential if the UK is to meet its emission targets, but there is a lack of political will to drive it up the agenda, says Denise Chevin. 20 per cent. The ambition has certainly been lauded. The problem is, as organisations like the Energy Saving Trust point out, "the poli- cies are not in place to achieve it". Going backwards Despite accepting the importance of energy e ciency, progress has gone into reverse gear in recent years as funding has dwin- dled and political focus been lost. Heating buildings accounts for 32 per cent of carbon emissions – and of this, 22 per cent is from homes. But since 2012 there has been a 95 per cent reduction in the rate of energy e - ciency measures installed in English homes, according to the Energy Savings Trust. So while the destination for the utility of the future is clear, the route map is missing. For years, the key driver in the energy "It's all very well telling some- one they can save a couple of hundred pounds on their energy bill… that's not enough to engage them in the action." Joanne Wade, deputy director, ADE e ciency market has been subsidies through supplier obligations such as the Energy Com- pany Obligation rather than private ƒ nance. In the domestic sector alone, it is estimated that additional private investment of around £3.5 billion per year is needed on energy e ciency measures to achieve the level of change required between now and 2035 – with government estimates of the total amount needed at between £35 billion and £65 billion. A host of reports and warnings about the need to accelerate progress culminated last month in a stern rebuke from the department of Business, Energy and Industrial Strategy (BEIS) select committee, which concluded that the government is oš -track to meet its energy e ciency targets and that major pol- icy gaps still exist. MEETING THE FIFTH CARBON BUDGET Energy effi ciency improvements Whole-systems approach Decarbonising transport Uptake of renewable electricity Decarbonising heat Nuclear energy development Development of CCUS The 2017 Clean Growth Strategy indicated a 60MtCO2e (3.5%) shortfall in meeting the fi fth carbon budget target given the UK emissions trajectory at that time. Which areas should the government prioritise to meet this estimated shortfall at least cost? Energy Institute respondents were allowed to choose more than one response Percentage of respondents 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: Energy Institute

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