Agenda item

UK Energy Security Strategy Update

Minutes:

The Assistant Director (IT and Transformation) provided the Climate Change Advisory Board with an update on UK Energy Security Strategy and highlighted the following:

 

 

·       Immediate support on energy bills

-        The government acknowledges the pressures people are facing with the cost of living and hence announced a £9.1 billion package of support, including a £150 energy rebate in April (for eligible households in Council Tax bands A-D), and a £200 energy bill discount in October to cut energy bills quickly for most households.

-        The Warm Home Discount will increase to £150 in October and extend its coverage to assist 3 million people.

-        £500 million investment in Household Support Fund for local authorities to use in supporting the most vulnerable with food and utility bills.

 

·       Energy efficiency

-        £450 million Boiler Upgrade Scheme to be launched this April.

-        Heat Pump Investment Accelerator Competition in 2022 worth up to £30 million to reduce demand for gas.

-        Over £6 billion of investment is planned to decarbonise the country’s homes and buildings and this would save the lowest income families around £300 a year on their bills.

-        By 2025, around 700,000 homes will be upgraded, and by 2050 all our buildings will be energy efficient with low carbon heating.

 

·       Solar and other technologies

-        The aim is to see the current solar capacity to grow up to 70GW by 2035.

-        Government to consult on amending planning rules to strengthen policy in favour of solar development.

-        VAT on solar panels for homes has been removed and working on low-cost finance options with retail lenders to help households install rooftop solar.

-        Design performance standards to further encourage renewables, including solar photovoltaic (PV) panels, in new homes and buildings.

 

·       Hydrogen

-        The UK government is doubling the ambition for low-carbon hydrogen production and is aiming to reach 10GW capacity by 2030, with at least 50% coming from electrolytic projects.

-        This fuel will not only provide cleaner energy for vital British industries to move away from fossil fuels, but will also be used for storage, trains, heavy equipment, and generating heat.

-        The UK government is also aiming to design new business models for hydrogen transport and storage infrastructure by 2025 to boost the hydrogen economy.

 

·       Networks, storage and flexibility

-        Anticipating need and hyper-flexibility are the 2 key features to be prioritized to reduce energy wastage which could help to bring down costs by up to £10 billion a year by 2050.

-        UK to undertake a comprehensive Review of Electricity Market Arrangements (REMA) with high-level options for reform set out this summer to ensure fit for purpose retail market for all consumers to benefit.

-        Smartening up the system with more flexible pricing, through Time of Use tariffs and battery storage through electric vehicles.

-        Ensuring all new homes are designed so that smart meters can be fitted from the outset, in advance of the Future Homes and Building Standards by 2024.

-        of billions of private investments to support new industries that can generate hundreds of thousands of high-quality jobs, drive down bills and boost the economy across the United Kingdom.

-        This isn't just about getting to net-zero, as crucial as it is. It's a matter of national security.

 

 

 

 

The Climate Change Advisory Board noted the contents of the report.

 

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