Decarbonising heat is an ‘inherently local issue’

“Stop-start, short-sighted” government strategy has stalled progress on heat decarbonisation and councils must now be empowered to take the lead.

This is the conclusion of a new report into the role smart local energy systems could play in the decarbonisation of heat.

The report by EnergyREV, a consortium of academics, points out that while last year’s Heat and Buildings Strategy highlighted the potential importance of councils in decarbonising homes, the process remains paralysed by a “top-down, one-size-fits-all approach”.

It claims that a focus on local forms of system management, operation, governance, ownership, and user engagement, would deliver a “faster, fairer and cheaper” transition to net-zero homes.

It issues a series of recommendations, many of which revolve around devolving more powers and responsibilities to councils, stressing that this would need commensurate funding.

One of the report’s authors, Jeff Hardy, of Imperial College London, told Utility Week: “You need a national recognition that if we’re going to decarbonise heat then it is inherently a local issue. So, that means local solutions.

“There needs to be an acknowledgement that local actors are going to be critical – that’s local authorities clearly but also businesses, supply chains and the public themselves. They are the ones that are going to make this happen. It simply won’t get off the ground if it all emanates from Whitehall.”

Among the recommendations from EnergyREV are that local authorities be mandated to work with energy networks on strategic infrastructure investment plans and link them to economic development strategies. It also envisages councils taking responsibility for dispersing grant funding, such as for heating and energy efficiency. Meanwhile, it wants local authorities to take the lead on engaging consumers and businesses, as well as rolling out energy efficiency measures.

Hardy said: “It is mind-boggling that in the middle of a gas crisis there is still no serious talk about getting homes up to a decent energy efficiency standard in the UK.

“The way to do that is not just to recognize the importance of local authorities but give them a duty to do something about energy efficiency and heat planning. But that duty needs to come with proper resources.”

The report stresses that allowing local authorities to leverage their purchasing power could accelerate the creation of green supply chains, ensuring that each area develops the skills requisite to its needs.

It calculates that smart local energy systems could minimise the financial burden of decarbonisation by delivering £1.2—2.8 billion in cost savings by 2030, and £2.9-8.7 billion by 2040. It claims this approach could also unlock societal co-benefits of heat decarbonisation, such as improving health and alleviating fuel poverty, through smarter planning.

While the report’s focus is on grassroots action, it also makes clear that government must set the wider strategy and calls for key decisions, such as the future of the gas network, to be taken “as soon as possible”.

Hardy added: “You need a clear vision from government at the heart of all this – an unambiguous target that by a certain date every single home will be zero carbon. But the nuances of that should be handled by local authorities, who understand the specific needs in their areas. Give them the power, the resources and the deadline and let them get on with it.

“I know I make it sound easy and I recognize this is a complete change to the way we do politics in this country but the top-down approach has got us nowhere.”

The routes to decarbonisation of heat will be discussed at Utility Week’s Future of Heat conference on 30 March, featuring speakers from BEIS, Cadent and Octopus among others.