Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Deferred
DESNZ identifies heat networks as key alternative for complex homes, investing significantly.
Conclusion
The NAO reported that DESNZ was yet to determine its approach for homes that are complex to decarbonise. DESNZ told us that it considered that heat networks would be the next major alternative low-carbon technology for people living in properties that are unsuitable for a heat pump. DESNZ outlined that it was identifying areas suitable for heat networks through heat network zoning in partnership with local authorities. It explained that it had a strong pipeline of projects for heat networks and was investing some £868 million in heat networks up to 2028. This included £338 million to 2025 and £530 million between 2025 and 2028. It explained that the main source of funding was 42 Q 66; C&AG’s Report, para 2.21 43 DHH0045 44 DHH0043 45 Qq 114–116; C&AG’s Report, para 2.22 46 DHH0024, Written evidence submitted by Mr Tom Lowe, 29 April 2024; DHH0044, Written evidence submitted by Tepeo, 29 April 2024 47 DHH0041, Written evidence submitted by NexGen Heating, 29 April 2024 Decarbonising home heating 17 its Green Heat Network Fund, which it said had so far provided grants of £268 million to support 20 projects. DESNZ stated that most applications to this fund were for large heat pumps, some of which use energy from waste, mine water or geothermal sources. DESNZ estimated that around 3% of total heat demand is supplied to buildings through heat networks, but it believed that there was potential for that to expand to around 20% by 2050.48
Government Response Summary
The government accepts the implied recommendation to determine an approach for homes complex to decarbonise, committing to publish a research report by Summer 2025. This report will provide further information on properties unsuitable for traditional heat pumps and appropriate alternative technologies.
Government Response
Deferred
HM Government
Deferred
5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2025 5.2 The department accepts the recommendation though the date of implementation will be later than recommended by the former Committee, aligning with the publication of the research report from Summer 2025. The department will provide further information on which types of properties may not be suitable for traditional heat pumps operating at low flow temperatures, and what alternative low-carbon heating technologies may be most appropriate for this group. 5.3 Departmental modelling indicates it would be feasible to install heat pumps in over 90% homes across the UK, based on analysis of their energy efficiency and fuse limit. Results from the Electrification of Heat Demonstration Project show that heat pumps are widely suitable across the diverse range of housing archetypes present in the UK. 5.4 Nonetheless, the department has been monitoring a range of different low carbon heating solutions that could be used in properties that would not be suitable for traditional low temperature heat pumps. These include high temperature heat pumps, air to air heat pumps, electric boilers, heat batteries and storage heaters. Off the gas grid, the department is supporting the installation of solid biomass systems in a small number of appropriate properties through the Boiler Upgrade Scheme. 5.5 The department has commissioned further research that will look at the most feasible and cost-effective approaches to transitioning complex to decarbonise properties onto clean heating systems. The Department intends to publish that research report once it is available from Summer 2025.