Energy UK: ‘EVs must be integral to car scrappage scheme’

Energy UK has backed limiting any post-lockdown car scrappage scheme to electric vehicles (EVs).

A new report, published today (22 June), outlines the trade body’s proposals for the role that the energy sector can play in a Covid-19 economic recovery package.

The report’s five headline recommendations, which were previewed by Utility Week last week, include a further acceleration of the transition to low-carbon transport.

As part of this, the report says that any financial support for the motor industry must incentivise  purchases of electric rather than internal combustion vehicles either through a “time-limited” increase to the Plug-in Car Grant and/or a zero-emission scrappage scheme.

Motor manufacturers are pressing for the introduction of a car scrappage scheme but do not want it to be confined to electric vehicles, according to a recent press report. The German government has already announced that buyers of new EVs will receive a €9,000.

Energy UK also urges implementation of the EV Energy Taskforce’s recommendation to coordinate investment in public charge point infrastructure across the UK, where the market will not deliver.

It says that any Covid-19 related government support for the motor industry protects and enhances UK jobs in the EV and wider low carbon transport supply chain.

The government could also bolster the EV supply chain by obliging all local authorities to develop Clean Air Zones.

The report also calls for the launch of an “ambitious” national housing upgrade programme of domestic energy efficiency and low-carbon heat retrofits, which it says will help to create mass employment across the regions.

The centrally-funded initiative should focus initially on vulnerable homes in less affluent parts of the UK, says Energy UK.

The programme should provide grants for large-scale low carbon heat pathfinder projects in targeted regions to help efforts to “level up” the UK economy. These projects could include heat pumps, hybrid heat systems, district heat networks, hydrogen boilers and solar thermal.

As part of the nationwide homes upgrade programme, a Heat Sector Deal should be established between government and industry with a target to install one million low carbon heating systems by 2025.

The government should also consider linking post Covid-19 support packages to energy efficiency measures identified under energy savings opportunity scheme reporting.

In addition, the report says that key learnings from the pandemic on system balancing and the role of flexibility should be incorporated into the energy white paper.

And it urges government to provide early clarity on its carbon price mechanism from the beginning of 2021 when the UK is due to depart the EU emissions trading system.

Audrey Gallacher, Energy UK’s interim chief executive, said: “The need to kickstart our economy after this huge shock does however present an unprecedented opportunity to shape and reset our future which we must seize. We must ensure our recovery is based around creating a clean, sustainable and resilient low carbon economy which delivers opportunities and benefits across the whole country and for a population hit hard by this crisis.”