Decarbonising home heating

Public Accounts Committee Closed Inquiry
Opened: 22 Mar 2024 Closed: 29 May 2024 Parliament page
Home heating made up 18% of all UK greenhouse gas emissions in 2021. In October of the same year, the Government published its Heat and Buildings Strategy, which has the ambition to end the installation of new fossil fuel boilers by 2035. It also commits to growing the supply chain … Read more
16 Recommendations
23 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 5 events
11 Jul
2025
Report published
26 May
2024
Report published
8 May
2024
Correspondence
24 Apr
2024
Oral evidence
24 Apr
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
24 Apr 2024
View on parliament.uk
Decarbonising home heating
Ben Rimmington · Department for Energy Security and Net Zero David Capper · Department for Energy Security and Net Zero Jeremy Pocklington CB · Ministry of Defence
Title HC No. Published Items Response
Thirty-Seventh Report - Decarbonising home heating HC 653 26 May 2024 39 Responded
Recommendations & Conclusions
39 results
2 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
Set out plans to simplify heat pump landscape for consumers, clarifying insulation impacts.
We are concerned that there is too much complexity and potential confusion for households to enable them to make informed decisions about installing a heat pump. Households can face complex decisions when looking to install a heat pump. For example, … Read more
Government Response
The government agrees and is improving its Heat Pump Home Suitability tool to include localized links, advice on pipework and radiators, and the impact of insulation on energy bills. It will also set out further improvements to consumer navigation in the Warm Homes Plan.
HM Treasury
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3 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
Set out actions to increase heat pump installer numbers beyond 2025 to meet targets.
DESNZ has made good progress in increasing the number of trained heat pump installers, but it faces a huge challenge to make sure there are enough installers to achieve its target to install 600,000 heat pumps per year by 2028. … Read more
Government Response
The government agrees and is taking actions to increase installers, including the Heat Training Grant (until April 2025), a new Low Carbon Heating Technician apprenticeship (Autumn 2023), and supporting local supply chains with over £600,000 in pilots. It has also established the Office for Clean Energy Jobs.
HM Treasury
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5 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
DESNZ lacks clear plan for decarbonising homes where heat pumps are impractical.
DESNZ has not yet worked out how it will support households to decarbonise their homes where heat pumps are not a practical solution. An estimated 20 per cent of homes might be exempt from the government’s plans to phase out … Read more
Government Response
The government agrees to provide further information on alternative low-carbon heating technologies for properties unsuitable for traditional heat pumps and has commissioned research on feasible approaches, which it intends to publish in Summer 2025.
HM Treasury
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6 Conclusion Rejected
Thirty-Seventh Report - Decarbonis…
Set out how to test hydrogen for heating across all property types for informed decisions.
DESNZ’s work to test hydrogen for heating has been beset with problems, with key trials cancelled. DESNZ has committed to deciding on the role of hydrogen for heating in 2026. Major trials intended to support its decision have been cancelled … Read more
Government Response
The government explicitly disagrees with the recommendation to set out decommissioning plans by June 2025, stating that a full assessment will require more time due to the complexity and uncertainty of future energy scenarios.
HM Treasury
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7 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
Government plans to decarbonise power, crucial for low-carbon heating, face substantial delays.
Low-carbon heating will increase demand for electricity, but the government’s plans to decarbonise power have been delayed substantially. Heat pumps may change existing patterns around the demand for electricity, and DESNZ recognises that it needs to make sure the power … Read more
Government Response
The government agrees and has announced a Clean Power by 2030 target, appointing Chris Stark to lead a '2030 Mission Control' to accelerate delivery of critical clean energy infrastructure and resolve obstacles.
HM Treasury
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1 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
Committee took evidence from DESNZ on decarbonising home heating based on C&AG report.
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (DESNZ) about decarbonising home heating.1
Government Response
The government agrees, stating it is investing up to £42 million in the Heat Pump Ready innovation programme, part of the £1 billion Net Zero Innovation Portfolio, with projects underway and concluding in 2025, to overcome barriers and support innovation in heat pump deployment.
HM Treasury
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4 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
Government's Heat and Buildings Strategy outlines ambitions for low-carbon heating and heat pump installations.
In October 2021, the government published its Heat and Buildings Strategy. The Strategy stated the government’s ambition to end the installation of new fossil fuel boilers by 2035. It also committed to growing the supply chain for heat pumps to … Read more
Government Response
The government agrees with the observation but notes there is currently no single data source for heat pump installations and is investigating various data sources to cover gaps, stating it cannot commit until a suitable mechanism is found.
HM Treasury
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8 Recommendation Accepted
Thirty-Seventh Report - Decarbonis…
Upfront heat pump installation costs remain too high for many households despite grants.
Grants under the Boiler Upgrade Scheme are available to all households irrespective of income. While other schemes are available for low income households, such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and the Energy Company Obligation, DESNZ explained … Read more
Government Response
Government agrees with the recommendation and commits to writing to the Committee by Spring 2025 upon publication of interim findings from the Boiler Upgrade Scheme evaluation, detailing heat pump uptake among different socio-economic groups.
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9 Recommendation Accepted
Thirty-Seventh Report - Decarbonis…
Boiler Upgrade Scheme's universal grants risk "deadweight" for affluent heat pump adopters.
We asked DESNZ whether heat pumps were being installed by people who may have switched to a heat pump anyway, particularly more affluent households. DESNZ accepted that the universal nature of the Boiler Upgrade Scheme raised a prospect of “deadweight”, … Read more
Government Response
Government agrees with the recommendation and commits to writing to the Committee by Spring 2025 upon publication of interim findings from the Boiler Upgrade Scheme evaluation, detailing heat pump uptake among different socio-economic groups.
HM Treasury
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10 Recommendation Acknowledged
Thirty-Seventh Report - Decarbonis…
High electricity prices make heat pumps more expensive to run than gas boilers.
DESNZ recognised that the cost of running heat pumps was also a key barrier to heat pump adoption. It explained that, as they are based on electricity, heat pumps are more expensive to run than fossil fuel boilers because of … Read more
Government Response
Government agrees with the recommendation to address running costs but defers an implementation date, stating they are considering ways to reduce costs and funding an innovation programme to improve heat pump performance, without specific commitments on the electricity-gas price ratio.
HM Treasury
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11 Recommendation Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ plans to rebalance electricity and gas costs have been substantially delayed.
DESNZ plans to work on rebalancing the costs of electricity and gas, but it said that doing so is difficult because of large structural issues in the sector. It had aimed to rebalance costs to some extent by moving levies … Read more
Government Response
The government agrees with the recommendation to rebalance electricity and gas costs but defers the implementation date, stating it is dependent on further ministerial steers. It confirms it is considering ways to lower running costs for low-carbon technologies and highlights existing innovation programs.
HM Treasury
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12 Recommendation Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ removed insulation requirements for Boiler Upgrade Scheme grants to simplify applications.
Households can face a range of decisions when looking to install a heat pump. One such decision is whether to improve insulation to reduce energy usage and emissions. At the time of our evidence session, households were required to meet … Read more
Government Response
The government agrees with the implied recommendation to simplify the heat pump installation process but defers the implementation date, stating it is subject to ministerial steers. It references existing consumer advice tools and commits to further improving the heat pump landscape in a future Warm Homes Plan.
HM Treasury
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13 Recommendation Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ removed insulation requirements for heat pumps, making upgrades optional for homeowners.
We asked DESNZ why it had decided to change the minimum insulation standards required for heat pumps, and what impact it expected this decision to have. DESNZ told us that government had decided to leave insulation improvements as a choice … Read more
Government Response
The government agrees with the implied recommendation to address consumer experience challenges for heat pumps but defers a comprehensive approach, stating the implementation date is subject to ministerial steers. It highlights existing advice tools and a phoneline service and plans to set out further improvements in a future Warm Homes Plan.
HM Treasury
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14 Recommendation Accepted in Part
Thirty-Seventh Report - Decarbonis…
Conflicting advice on 'fabric first' approach creates confusion for households regarding insulation.
While some organisations advocated a ‘fabric first’ approach, which involves improving the thermal performance of materials in a building prior to installing a heat pump, others suggested that it is not necessary, making it difficult for households to determine cost- … Read more
Government Response
Government agrees with the recommendation and is making specific improvements to its Heat Pump Home Suitability tool, including advice on insulation and energy efficiency measures, to help households determine cost-effective options.
HM Treasury
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15 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
Consumers face significant complexity understanding heat pump running costs and installation impact.
We noted that the installation of heat pumps could be a very complicated picture for consumers, and asked how an individual was expected to understand the running costs of a heat pump and the potential impact of installing insulation before … Read more
Government Response
The government agrees but defers the implementation date pending new ministerial steers. It highlights ongoing activities to simplify switching to low carbon heating for consumers and will detail further improvements in the Warm Homes Plan.
HM Treasury
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16 Recommendation Accepted in Part
Thirty-Seventh Report - Decarbonis…
Homeowners lack impartial, personalised advice for decarbonising homes, finding the process confusing.
In response to our question about how DESNZ ensured customers had access to proper information to make decisions about investment and running costs, the Department explained that it provided information through its online tools on heat pump suitability and retrofit … Read more
Government Response
Government agrees with the recommendation and is making specific improvements to its Heat Pump Home Suitability tool to provide better information, while also stating broader improvements will be set out in the Warm Homes Plan.
HM Treasury
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17 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ recognises need to significantly improve government digital advice for heat pump adoption.
DESNZ clarified that it was “working on making the Government digital offering in this space much better”. It added that it signposted to digital companies that helped households to calculate running costs and lifetime costs via gov.uk. It recognised, however, … Read more
Government Response
The government agrees but defers the implementation date pending new ministerial steers. It outlines ongoing activities to improve consumer support for low carbon heating and states it will further detail improvements in the Warm Homes Plan.
HM Treasury
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18 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
Meeting heat pump installation targets demands a substantial increase in trained installers by 2028.
We received written evidence from the Retrofit Academy, Schneider Electric, Energy UK and MCS Service Company which highlighted that meeting the target to install 600,000 heat pumps per year by 2028 will require a large increase in the number of … Read more
Government Response
The government agrees with the recommendation to increase the number of trained heat pump installers and describes existing initiatives like the Heat Training Grant and new apprenticeships. However, decisions on future training support beyond April 2025 are deferred to Spending Review 2025.
HM Treasury
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19 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ invests in heat pump installer training, but sustained long-term commitment is essential.
DESNZ said that training new installers was a “growing industry”. It stated that it was investing £29 million from 2021–22 to 2024–25 to train installers in the heat sector. Part of this spend includes a £5 million Heat Training Grant … Read more
Government Response
The government agrees but defers decisions on future training support beyond April 2025 to Spending Review 2025. It acknowledges the need for more installers, highlights ongoing work like apprenticeship updates and establishing the Office for Clean Energy Jobs, and will work with industry.
HM Treasury
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20 Recommendation Accepted in Part
Thirty-Seventh Report - Decarbonis…
Insufficient incentives hinder retraining 110,000 gas heating engineers for heat pump installations.
We heard from DESNZ that a key challenge will be to retrain around 110,000 existing gas heating engineers to install heat pumps. Centrica, an energy company and low carbon heating installer, agreed that it was “vital” to focus on retraining … Read more
Government Response
Government agrees with the recommendation and highlights existing training grants, updated apprenticeships, and the establishment of a new Office for Clean Energy Jobs, but defers decisions on future training incentives to the Spending Review 2025.
HM Treasury
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21 Conclusion Accepted in Part
Thirty-Seventh Report - Decarbonis…
DESNZ lacks a comprehensive, single measure for tracking total heat pump installations.
DESNZ does not have a single measure of the number of heat pump installations. Instead, it relies on data from a range of sources, including the number of heat pump 32 Q 21; DHH0008; DHH0010, Written evidence submitted by The … Read more
Government Response
The government commits to publishing quarterly data for retrofit installations using government funding. However, for new build and non-government funded installations, it is only investigating mechanisms to collect data and cannot yet commit to doing so.
HM Treasury
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22 Conclusion Accepted in Part
Thirty-Seventh Report - Decarbonis…
DESNZ is developing improved data series and dashboards to monitor heat pump progress.
DESNZ told us that it was looking to produce a more regular data series that it could publish by combining some of its data sources. It was also developing a dashboard that will show the number of heat pumps installed … Read more
Government Response
The government agrees to publish quarterly data for retrofit installations funded by the government by Winter 2024. However, it is still investigating methods to collect and publish data for new build and non-government funded installations, unable to commit until a suitable mechanism is found.
HM Treasury
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23 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
DESNZ evaluates Boiler Upgrade Scheme, but evaluation scope and coverage remain unclear.
We asked DESNZ how it was learning lessons from the roll out of heat pumps. It explained that it had already learned some lessons, such as about the level of grant driving demand, and that it would continue to evaluate … Read more
Government Response
The government agrees with the recommendation and commits to writing to the Committee upon publication of the first interim findings from the Boiler Upgrade Scheme evaluation. This report is expected in Spring 2025 and will include details on heat pump take-up across different socio-economic groups.
HM Treasury
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24 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
Significant proportion of households face challenges, making heat pump installation difficult for properties.
In September 2023, the government announced that some homes may be exempt from the planned phase-out of new fossil fuel boilers in 2035. The government estimated that around a fifth of households might be exempt. Examples of such homes could … Read more
Government Response
The government accepts the committee's observations and commits to providing further information on properties unsuitable for traditional heat pumps and appropriate alternative technologies, aligning with the publication of its commissioned research report from Summer 2025.
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25 Recommendation Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ yet to determine criteria for homes unsuitable for heat pumps, delaying exemptions.
In response to our question about how it would identify which homes are unsuitable for a heat pump and therefore exempt from the 2035 phase out, DESNZ said that it was some way from determining this, given the deadline was … Read more
Government Response
The government accepts the implied recommendation to identify homes unsuitable for heat pumps and to provide alternative low-carbon solutions, but defers the action to publish relevant research until Summer 2025. This research will detail properties not suitable for traditional heat pumps and appropriate alternative technologies.
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26 Conclusion Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ identifies heat networks as key alternative for complex homes, investing significantly.
The NAO reported that DESNZ was yet to determine its approach for homes that are complex to decarbonise. DESNZ told us that it considered that heat networks would be the next major alternative low-carbon technology for people living in properties … Read more
Government Response
The government accepts the implied recommendation to determine an approach for homes complex to decarbonise, committing to publish a research report by Summer 2025. This report will provide further information on properties unsuitable for traditional heat pumps and appropriate alternative technologies.
HM Treasury
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27 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
New heat network regulations risk increasing costs for social housing residents.
In a written submission to our inquiry, the Chartered Institute of Housing expressed concern that the social housing sector, which it said accounted for over half of all heat networks, would need clear guidance and support to prepare and respond … Read more
Government Response
The government recognizes that the social housing sector will need support and that Ofgem will be responsible for regulating heat networks. DESNZ is working with Ofgem to ensure a proportionate regulatory framework.
HM Treasury
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28 Recommendation Accepted
Thirty-Seventh Report - Decarbonis…
Major hydrogen heating village trials cancelled or delayed, impacting 2026 strategic decision.
In the 2021 Heat and Buildings strategy, DESNZ committed to developing the evidence base necessary to take strategic decisions on the role of hydrogen for heating buildings in 2026. It also committed to establishing large-scale trials of hydrogen for heating, … Read more
Government Response
Government confirms the recommendation is implemented, acknowledging the cancellation or delay of major hydrogen trials and outlining its ongoing research and development programme to gather evidence for strategic decisions on hydrogen for heating.
HM Treasury
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29 Recommendation Accepted
Thirty-Seventh Report - Decarbonis…
Hydrogen town pilot progress halted until after 2026 strategic heating decisions.
We observed that, at the time of our evidence session, an announcement on a successful bidder for a hydrogen town, planned for the end of this decade, was delayed by 13 months. We asked DESNZ when an announcement could now … Read more
Government Response
Government confirms the recommendation is implemented, stating the decision not to progress a hydrogen town pilot until after 2026 strategic decisions, and outlining its ongoing research and development programme for hydrogen heating.
HM Treasury
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30 Conclusion Accepted
Thirty-Seventh Report - Decarbonis…
Hydrogen trials cancellations adversely impact evidence collection for 2026 strategic decision.
In response to a question about how DESNZ had got so far with the trial at Redcar before realising that the supply of hydrogen needed was not available, DESNZ said that it was not solely reliant on the outcomes from … Read more
Government Response
The government states the recommendation is already implemented, detailing its ongoing research and development programme for hydrogen heating. This programme includes safety evidence, technical assessments, trial evidence, and energy systems modelling to inform a strategic decision in 2026.
HM Treasury
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31 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
Uncertainty over hydrogen's role in heating delays critical industry decarbonisation investments.
Several written submissions to our inquiry highlighted that uncertainty over the role of hydrogen is delaying key decarbonisation investment decisions until government makes a decision on hydrogen. Hydrogen UK, for example, told us that the decisions about trials and recent … Read more
Government Response
The government acknowledges uncertainty around the role of hydrogen in home heating and is committed to providing clarity, informed by hydrogen village trials, and intends to make strategic decisions in 2026.
HM Treasury
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32 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
Widespread customer confusion and industry 'wait and see' approach due to hydrogen uncertainty.
Alongside industry, some written submissions highlighted that households were unclear over the role of hydrogen. Octopus Energy told us that there was “widespread 53 Qq 92, 93 54 Department for Energy Security and Net Zero, Correspondence – Hydrogen Heating Town … Read more
Government Response
The government recognizes the need to ensure households have clear information about the role of hydrogen in home heating and will continue to work with industry and consumer groups to raise awareness and provide information.
HM Treasury
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33 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
DESNZ resists early hydrogen decision despite industry and NAO calls for clarity.
We asked DESNZ if it was aware of the level of uncertainty for industry given that an increasing number of businesses do not know what the government’s position is on heat decarbonisation. DESNZ told us that it needed to “take … Read more
Government Response
The government acknowledges the level of uncertainty for industry and households regarding the role of hydrogen in home heating and believes that a decision on hydrogen should be taken in 2026 to avoid becoming locked into a suboptimal path.
HM Treasury
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34 Recommendation Rejected
Thirty-Seventh Report - Decarbonis…
Uncertainty surrounds future of gas networks and significant decommissioning costs.
Hydrogen UK and the National Audit Office reported that there was also uncertainty over the future role of the gas networks, if it is decided that hydrogen has a limited role and electricity becomes the main energy source.69 This included … Read more
Government Response
Government explicitly rejects the recommendation for a full assessment on the future of gas networks and decommissioning costs, stating it requires more time, while acknowledging ongoing work to understand scenarios and funding.
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35 Recommendation Rejected
Thirty-Seventh Report - Decarbonis…
DESNZ possesses limited understanding of future gas network decommissioning costs and feasibility.
Although DESNZ clarified that gas networks will be needed for some considerable time, it accepted that it needed to increase its work to look at future decommissioning. The NAO found that DESNZ’s work on the costs and feasibility of gas … Read more
Government Response
The government explicitly rejects the recommendation for a full assessment of gas network decommissioning costs and feasibility, stating it would require more time. However, it acknowledges the importance and describes ongoing work with regulators and industry to understand decommissioning needs in different scenarios.
HM Treasury
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36 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
Decarbonising electricity generation proves crucial for achieving government net zero targets.
Decarbonising electricity generation is crucial to the government’s net zero strategy, including decarbonising home heating. If, as the government expects, most homes switch their heating systems to heat pumps or heat networks, it is important that these are powered by … Read more
Government Response
The government acknowledges the committee's observations about decarbonising electricity generation and its 2035 ambition. It reiterates its 2030 Clean Power target and the appointment of Chris Stark to lead a 2030 Mission Control to accelerate delivery, with further details to follow.
HM Treasury
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37 Recommendation Acknowledged
Thirty-Seventh Report - Decarbonis…
Intermittent renewable energy sources necessitate new flexible low-carbon technologies for grid reliability.
We noted that renewable energy sources such as solar and wind are determined by the weather, making them intermittent; a view supported by Hydrogen UK. DESNZ recognised that electricity-based heating may change existing patterns in demand for electricity. It said … Read more
Government Response
Government agrees with the recommendation but defers an implementation date, referencing a Clean Power by 2030 target and the creation of a '2030 Mission Control' to address obstacles, with further details expected later.
HM Treasury
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38 Recommendation Deferred
Thirty-Seventh Report - Decarbonis…
DESNZ continues to lack an overarching delivery plan for power sector decarbonisation.
We examined, in a separate inquiry, DESNZ’s ambitions for decarbonising the power sector and concluded that it lacked an overarching delivery plan that would provide confidence to the private sector to invest in new and upgraded infrastructure. We also warned … Read more
Government Response
The government agrees with the recommendation but defers the implementation date pending new ministerial steers. It has appointed a 2030 Mission Control to accelerate critical clean energy infrastructure delivery, with further information to be announced.
HM Treasury
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39 Conclusion Acknowledged
Thirty-Seventh Report - Decarbonis…
DESNZ shifts focus towards spatial planning for local energy demand and low-carbon connections.
DESNZ told us that, since our inquiry into decarbonising the power sector, it had shifted its emphasis towards the importance of spatial planning. It explained that this involved considering both overall energy demand at a local level, such as for … Read more
Government Response
The government agrees on the importance of spatial planning for decarbonising home heating and is working with local authorities and other stakeholders to develop spatial energy plans.
HM Treasury
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Government Response AI assessment · 39 of 16 classified
Accepted 11
Accepted in Part 5
Acknowledged 9
Deferred 11
Rejected 3
Total 16 recs + 23 conclusions
Correspondence 1 letter
8 May 2024 Correspondence from Richard Warren, Director of Public Affairs, The Kensa Group, re Decarbonising Home Heating, dated 1 May 2024
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