Recommendations & Conclusions
9 items
4
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
In October 2021, the government published its Heat and Buildings Strategy. The Strategy stated the government’s ambition to end the installation of new fossil fuel boilers by 2035. It also committed to growing the supply chain for heat pumps to a minimum market capacity of 600,000 heat pump installations per …
Government response. The government agrees with the observation but notes there is currently no single data source for heat pump installations and is investigating various data sources to cover gaps, stating it cannot commit until a suitable mechanism is found.
HM Treasury
10
Recommendation
Thirty-Seventh Report - Decarbonising h…
Acknowledged
DESNZ recognised that the cost of running heat pumps was also a key barrier to heat pump adoption. It explained that, as they are based on electricity, heat pumps are more expensive to run than fossil fuel boilers because of the cost of electricity is higher than gas.17 This view …
Government response. Government agrees with the recommendation to address running costs but defers an implementation date, stating they are considering ways to reduce costs and funding an innovation programme to improve heat pump performance, without specific commitments on the electricity-gas price ratio.
HM Treasury
27
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
In a written submission to our inquiry, the Chartered Institute of Housing expressed concern that the social housing sector, which it said accounted for over half of all heat networks, would need clear guidance and support to prepare and respond to the new regulatory regime for heat networks, and that …
Government response. The government recognizes that the social housing sector will need support and that Ofgem will be responsible for regulating heat networks. DESNZ is working with Ofgem to ensure a proportionate regulatory framework.
HM Treasury
31
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
Several written submissions to our inquiry highlighted that uncertainty over the role of hydrogen is delaying key decarbonisation investment decisions until government makes a decision on hydrogen. Hydrogen UK, for example, told us that the decisions about trials and recent announcements had “created ambiguity in the role of hydrogen in …
Government response. The government acknowledges uncertainty around the role of hydrogen in home heating and is committed to providing clarity, informed by hydrogen village trials, and intends to make strategic decisions in 2026.
HM Treasury
32
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
Alongside industry, some written submissions highlighted that households were unclear over the role of hydrogen. Octopus Energy told us that there was “widespread 53 Qq 92, 93 54 Department for Energy Security and Net Zero, Correspondence – Hydrogen Heating Town pilot: letter to Gas Distribution Networks – update, 9 May …
Government response. The government recognizes the need to ensure households have clear information about the role of hydrogen in home heating and will continue to work with industry and consumer groups to raise awareness and provide information.
HM Treasury
33
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
We asked DESNZ if it was aware of the level of uncertainty for industry given that an increasing number of businesses do not know what the government’s position is on heat decarbonisation. DESNZ told us that it needed to “take decisions in the right order at the right time” and, …
Government response. The government acknowledges the level of uncertainty for industry and households regarding the role of hydrogen in home heating and believes that a decision on hydrogen should be taken in 2026 to avoid becoming locked into a suboptimal path.
HM Treasury
36
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
Decarbonising electricity generation is crucial to the government’s net zero strategy, including decarbonising home heating. If, as the government expects, most homes switch their heating systems to heat pumps or heat networks, it is important that these are powered by clean sources of electricity to achieve decarbonisation. In 2021, the …
Government response. The government acknowledges the committee's observations about decarbonising electricity generation and its 2035 ambition. It reiterates its 2030 Clean Power target and the appointment of Chris Stark to lead a 2030 Mission Control to accelerate delivery, with further details to …
HM Treasury
37
Recommendation
Thirty-Seventh Report - Decarbonising h…
Acknowledged
We noted that renewable energy sources such as solar and wind are determined by the weather, making them intermittent; a view supported by Hydrogen UK. DESNZ recognised that electricity-based heating may change existing patterns in demand for electricity. It said that it therefore needed to make sure the power system …
Government response. Government agrees with the recommendation but defers an implementation date, referencing a Clean Power by 2030 target and the creation of a '2030 Mission Control' to address obstacles, with further details expected later.
HM Treasury
39
Conclusion
Thirty-Seventh Report - Decarbonising h…
Acknowledged
DESNZ told us that, since our inquiry into decarbonising the power sector, it had shifted its emphasis towards the importance of spatial planning. It explained that this involved considering both overall energy demand at a local level, such as for electric vehicles as well as heating; and how to connect …
Government response. The government agrees on the importance of spatial planning for decarbonising home heating and is working with local authorities and other stakeholders to develop spatial energy plans.
HM Treasury