PRESS RELEASES | 10/05/2022
Time of crisis demands raised ambitions on energy efficiency and power decarbonisation
Reacting to today’s Queen’s Speech and the State Opening of Parliament, Nick Molho, Executive Director of the Aldersgate Group, said: “Addressing the energy efficiency of the UK’s built environment and accelerating our transition away from volatile fossil fuels in heating is crucial to support households through the ongoing cost of living crisis. Today’s announcements make some progress in this area, with the welcome intentions to boost consumer protections and trust in new technologies by setting up a market standard and trading scheme for heat pumps, and appointing Ofgem as regulator for heat networks through the new Energy Bill.
Nick Molho added: “However, it is critical to roll out a comprehensive programme for energy efficiency in parallel, as the quickest way to reduce demand for gas and bills in the short term. Boosting energy efficiency holds the potential not only to reduce bills, but also create jobs across the country as part of the government’s “Levelling Up” agenda. With this in mind we welcome the new measures outlined in today’s speech to introduce business models for CCS, transmission and storage infrastructure and hydrogen, which are key in driving down costs and boosting investment in these new low carbon technologies.
Nick Molho concluded: “The establishment of the Future System Operator is also a positive step forward, ensuring better coordination and oversight of future grid transmission development needs, which is a vital part of the effective renewable power system we need to end our reliance on fossil fuels. To build upon this, the role of Ofgem in facilitating net zero delivery must be clarified, with a focus on allowing greater levels of anticipatory investment in transmission infrastructure to build an effective net zero energy system. It is also crucial that introducing competition to the UK’s onshore electricity measures delivers higher investment and cost savings, and does not lead to delivery delays.”