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Wales & West: We can be in the vanguard of the decarbonisation revolution

As part of our Countdown to COP series, Utility Week speaks to Wales & West Utilities’ head of net zero and sustainability, Matt Hindle. He discusses the legacy of COP26 and why the energy sector must engage with the billpayers of the future.

COP26

What do you want to hear from the conference?

The UK was the first major economy to adopt a legally binding net zero target and is in a great position to pioneer the decarbonisation of homes, businesses, and heavy industry.

COP26 is an opportunity for us to pause, take stock of success so far and refocus on the challenges that face us as a sector: repurposing our world leading electricity and gas infrastructure to enable Net Zero, supporting the green industries of the future while decarbonising home heating in a way that keeps disruption and cost to customers and communities to a minimum.

It’s also a chance to highlight the excellent work being done by the energy sector right across the UK: from industrial clusters and hydrogen blending to developing new and innovative smart grid technologies.

What should the legacy of COP26 be?

Just as the UK was at the heart of the first Industrial Revolution, if we take the right steps now, we can be in the vanguard of the Decarbonisation Revolution – responding to the Climate Emergency.

The legacy of COP26 should also be raised awareness of communities right across the UK of the changes we can all make to have a positive impact.

Is your company actively participating in COP26?

We are collaborating through the Energy Networks Association on a series of events, as well as delivering sessions in local schools as part of our education programme, giving young people – future bill payers – the opportunity to have their say on the steps we should all take to decarbonise Wales, south west England and the UK as a whole.

It’s really important that we start having conversations with consumers everywhere about the changes ahead, making sure they have the information and support they need.

Walking the talk

When and how is your company planning to get to net zero? 

Based on our customers and stakeholders feedback, our environmental and decarbonisation plans are in line with the United Nations Sustainable Development Goals. This helps us to focus more clearly on helping to achieve broader societal ambitions and demonstrate the positive and wide-ranging impact we can have.

Between 2021-2026 we’re investing £400 million to keep the gas flowing safely and get our network net zero ready by 2035: able to transport green gases like hydrogen and biomethane. This will also help us reduce leakage and will reduce gas lost from our network by 10% by 2026, with an aim to reduce this to zero by 2050. But, acting on strong feedback from stakeholders – we’re getting our own house in order too, by:

  • Recycling or reusing 80% of our waste by 2026, while eliminating single use plastic by 2022 and reducing our paper consumption by 75% by 2026. Together these will help us send zero waste to landfill by 2035
  • Aiming for a zero emissions fleet (including HGVs) by 2035
  • Planting five trees for every one we cut down. This will not only help increase biodiversity and improve air quality, it will also deliver £3.2 million of value in carbon removal and other social benefits.
  • Adopting the principle of Biodiversity Net Gain – an approach that aims to leave the natural environment in a measurably better state than it was preciously by improving biodiversity and ecosystems.

To what extent should utilities look to offset emissions as opposed to focusing on achieving zero carbon?

Our strategy focusses on doing everything we can to reduce emissions and prepare our network to do the same.

Customers and the community

What role do you think utilities have in helping to accelerate the climate plans of local authorities?

Local authorities will have a key role in the delivery of net zero, and we’re supporting them with expertise in data, modelling and digitisation to inform their plans. Our industry leading 2050 Energy Pathfinder simulator assesses the cost, reliability and carbon emissions of any local decarbonization approach, and has been shared with a number of local authorities. A county council in south west England asked us for support in modelling the future energy system in their area and the simulator demonstrated that a mixed approach using green gas like hydrogen and biomethane alongside renewable electricity would deliver significantly cheaper bills for homes across the area compared to ASHP and electrification alone.

What role can utilities play in helping to engage customers on the path to net zero?

The last few years have been disruptive and dramatic for many. If we are to inspire energy customers in communities across the UK to play their part in getting to net zero, heat decarbonisation must avoid significant upfront cost and disruption to homes and communities.

That means utilities working together to convert the gas grid to green gas, allowing customers to use familiar appliances in similar ways as they do now. In the next few years, real world trials like Hydrogen Villages will help networks understand the challenges of the conversion process and the additional steps needed to make sure the transition to green gas is as simple and as straightforward as possible for energy customers.

And, through our Customer Panel, launched in early 2021, we’re speaking to representatives of our local communities directly about all aspects of our work – from how we can decarbonise to steps we should take to support the most vulnerable. Their views will play a key role in designing the future of our services.

Policy & regulation

What is your principle ask of government and regulators to help your company contribute to the net-zero push?

We’re looking forward to the publication of the Heat and Building Strategy, which will bring further clarity for the future of home decarbonisation in particular. The 2020s must be a decade of delivery, and we’d urge the government to continue their focus on hydrogen: mandating hydrogen ready boilers by 2025 for homes, enabling hydrogen blending and supporting investment in industrial clusters. Mandating hydrogen-ready boilers is ‘no regrets’ and will make sure households do not spend money on conventional gas boilers which then have to be replaced in a relatively short period of time afterwards. Blending and clusters will support the development of the hydrogen production market we need to deliver our shared ambitions.

We are optimistic that the regulatory provisions in place will help us invest in the necessary research, development and real life trials required to develop the energy system of the future. We want to continue to work closely with Ofgem, making sure that regulatory decisions enable the delivery of net zero.

This interview is part of the Countdown to COP series. To read more click here.