‘We didn’t have a plan before, now we do’

Utility Week rounds up responses to today's slew of green policy announcements, including contributions from EDF, SSE, Western Power Distribution and the Climate Change Committee, among others. While there is praise for the ambition shown, concern is expressed about the lack of concrete timescales and the tendency to “re-announce the same promises”.

Responses to the Net Zero Strategy

Simone Rossi, chief executive, EDF in the UK:

“With COP26 only two weeks away, it’s good to see confirmation of the government’s commitment to more nuclear and renewables to support the UK’s energy supply. Rising gas prices are putting pressure on people’s energy bills now, so we need to make urgent progress with building proven, low carbon energy generation that keeps costs steady and supplies secure.”

Chris Stark, chief executive, Climate Change Committee:

“We didn’t have a plan before, now we do. This is a substantial step forward that lays out clearly the government’s ambitions to cut emissions across the economy over the coming 15 years and beyond. It provides much more clarity about what lies ahead for businesses and individuals and the key actions required in the coming decades to deliver a net-zero nation. It also gives the UK a strong basis to be president of the forthcoming COP26 summit. The critical next step is turning words into deeds. We have begun to assess the strategy in more detail and the extent to which the policies proposed in this strategy deliver their ambition.”

Sir John Armitt, chair, National Infrastructure Commission:

“Kick starting the heat pump market to reduce costs for households to make the switch from gas boilers is an important step, but progress will need to be monitored closely. Alongside encouraging heat pumps, the key question is whether natural gas is going to be replaced with hydrogen or the gas network decommissioned, and only government can decide when and where that happens.

“This means it is vital that government sticks to its schedule for making decisions on the future role of hydrogen for heating.

“While we welcome government’s ambition to improve the energy efficiency of homes and other buildings, the continued lack of specific targets for the number of insulation installations makes it difficult to measure progress. It remains to be seen whether the range of schemes set out in the strategy will be able to deliver at the pace required.”

Alistair Phillips-Davies, chief executive, SSE:

“The recent situation with energy markets underlines the need to invest in more indigenous clean energy sources, and critically the flexible solutions to back them up. The ambition has always been there and now we have a more detailed roadmap as we approach COP26. Next we need to get on and deliver; and we are looking forward to working with government to make the ambitions of net zero a reality.”

Darren Jones, chair, Business, Energy and Industrial Strategy Committee:

“The government is failing to recognise the scale and pace of change required to meet our climate change targets. Ministers can’t just keep re-announcing the same promises and listing them all out with a repackaged name – they need an actual strategy that sets out the important role the state must play in our net-zero transition.”

Tom Greatrex, chief executive, Nuclear Industry Association:

“It is very welcome to see the government commit new money to the development of nuclear projects and set out its intention to bring Sizewell C to a Final Investment Decision. We need to invest quickly to clean up the grid by 2035 and ensure our energy security, so we look forward to seeing details of this new fund, money for SMR deployment and legislation for Regulated Asset Base financing coming forward soon.”

Paul Jewell, system development manager, WPD:

“Today’s two strategies provide the certainty needed for local authorities and electricity network operators to implement rapid decarbonisation in their areas. WPD is working closely with the local authorities in its licence areas to develop practical regional decarbonisation plans, which deliver safe and resilient energy capacity to support local growth.

“Our job has always been to keep the lights on but I can honestly say there has never been a more exciting or dynamic time to be in this industry as we work to ensure net zero happens and your power stays on. You can be sure we will be working hard to achieve that.”

Sue Ferns, senior deputy general secretary, Prospect:

“The most striking thing in this plan is the discrepancy between the urgency of the statements and the actual timescales set down. There is no reason we can’t immediately get moving on Sizewell C, introduce legislation for the Regulated Asset Base funding model, and start the ball rolling on all the other nuclear projects we will need going forward.

“The scale and urgency of the net-zero challenge requires a clear and timely implementation strategy based on a whole systems approach. This also requires a comprehensive skills strategy to create and sustain good quality green jobs.”

Ed Birkett, senior research fellow, Energy and Environment at Policy Exchange:

“We’re delighted to see that the government is putting a California-style Zero-Emission Vehicle (ZEV) mandate at the heart of its plans to decarbonise transport.”

“A ZEV mandate is a market-based policy that will require manufacturers to sell more electric cars and vans each year, or to buy credits from those that do. This is exactly the sort of policy that’s needed to achieve net zero by 2050 as cheaply as possible.”

“The next big challenge with cleaning up transport is to make sure that there are plenty of public chargepoints across the whole of the UK. We would like to see competitive auctions, similar to those that we have for offshore wind, targeting areas that don’t have enough chargepoints..”

Dr Nina Skorupska, chief executive, Association for Renewable Energy and Clean Technology:

“While I welcome and support the ambitions laid out in the strategy, I am increasingly concerned by the lack of meaningful progress on a whole range of issues.

“We need to see clear routes to market; a holistic Circular Economy approach; support for a range of clean tech and renewable technologies; best practice standards; tax reform to unlock investment, such as the removal of VAT on renewables and clean tech; and we need more flexibility and investment in the energy system and grid networks.

“There is still time for the government to make a substantive move on net zero. The upcoming Spending Review is a chance to deliver the investment needed to make the energy transition a reality.”

Responses to Heat & Buildings Strategy

Darren Jones, chair, Business, Energy and Industrial Strategy Committee:

“Improving insulation in our homes and installing low carbon heating is not only the right thing to do for our planet but it will also improve the quality of life in our homes and reduce energy bills.

“But the government has to learn the lessons for the string of failures in the past. These schemes should be delivered in partnership with local councils – not just outsourced to the cheapest company from London – and run alongside a national campaign to raise people’s understanding about the changes that will have to take place in our homes.”

Dame Clare Moriarty, chief executive, Citizens Advice:

“The boiler upgrade grant will make a big difference and should help bring down upfront costs for heat pumps. But making changes to homes can be complex and the scale of change needed won’t be achieved without more support. Homeowners, who will bear the cost of home improvements, must have a range of ways to pay for any changes including through mortgage lenders and other low-cost finance offers.”

Philip Dunne, chairman, Environmental Audit Committee:

“The policy is yet to meet the ambition with heat pump installations, in particular for owner occupiers. Ministers have previously announced the target to install 600,000 heat pumps by 2028, yet the announcement today only supports installation of 90,000 over the next three years. This is a good start but is less than offered initially through the Prime Minister’s Ten Point Plan for a Green Industrial Revolution announced last year. As yet, there is little acknowledgment that effective use of heat pumps requires buildings to be properly insulated. Our committee’s evidence highlighted that insulation costs can double the current cost of a heat pump for many of the 19 million homes that are older and have an EPC rating of less than C.

“Offering grants for heat pump installation can incentivise consumers, but with charges on electricity bills rather than gas, there is little to incentivise the ongoing costs. Our committee called for moving these levies on to gas bills rather than electricity bills, and I welcome the government announcement of  consultation with a view to taking this forward.”

Joanne Wade, chief strategic advisor, ADE (Association of Decentralised Energy):

“While there is much to commend in the Heat and Building Strategy, the future for energy efficiency of existing owner occupied homes remains opaque. A strategy, which is a central pillar of the government’s plan to reach net zero, must do better than simply saying that it is examining the future of owner occupier tenure retrofit. This is despite the promising signs of a consultation later in the year. It is right that the government is learning from the lessons of the Green Homes Grant, but the lack of progress in a sustainable, long term policy for the 62% of UK homes that are owner occupied homes is ultimately disappointing, especially in context of other more ambitious parts of the strategy.”

Adam Scorer, chief executive, National Energy Action:

“These strategies may be a good start to some enormous, generational challenges in achieving net zero but they fall short in helping the poorest households in the least efficient homes. We know what needs to be done but the government has stretched the budget to try and deliver clean heat and warm homes and risks disappointing on both.

“Unless it pulls a rabbit from the hat in the upcoming Spending Review then the government appears to be backing off from its manifesto ambitions. Coming into winter during a cost-of-living crisis, leaves a sour note around this strategy.”