ADE chief: New heat network subsidies ‘a long-awaited win’
Lily Frencham told NZI Rishi Sunak's £380 million heat network support package is 'a really encouraging step'
New subsidies to support heat network customers are a long-awaited win for the sector, an industry insider told Net Zero Investor today.
The CEO of the Association for Decentralised Energy (ADE), Lily Frencham, told this publication she welcomed this week’s Spring Budget announcement, in which the Government committed to subsidise the cost of energy for heat network infrastructure players and customers.
Frencham, who joined ADE from Ofgem, where she led the policy and communications team of the domestic renewable heat incentive, said she has been campaigning for this gap in government support to be closed since the start of the price crisis. Her trade association represents more than 160 organisations.
"We are very happy to see the next stage of ongoing protection of customers announced by the Chancellor, particularly the rolling out a new financial support package for those on heat networks," the former Australian Bureau of Meteorology staff member stressed.
"Alongside the extension of the Energy Price Guarantee (EPG), an equally welcome announcement to help protect the public from volatile energy prices, this is a really encouraging step towards tackling the worst impacts of the energy price crisis," Frencham explained.
“Zero carbon heat networks will be a mainstream way of heating buildings in the UK - it is thus vital that they receive support similar to that provided to any other type of energy customer – this Budget does this.”
In addition, her Kieran Sinclair, heat policy manager at the ADE, noted that this week's commitment would need to be underscored with a long-term plan to deploy solutions that will lower bills in the long-term.
He said: “We are very pleased at having helped to secure today’s £380 million heat network support package."
Sinclair explained that "while heat networks only supply 2% of the country’s heating demand today, they are an internationally proven route for decarbonising heat at scale and will need to see significant growth if we are to successfully decarbonise our towns and cities."
"This growth will need to be underpinned by a wealth of supportive regulations, and today’s announcement makes a real step in the right direction," he continued.
“However, we can’t ease off the pedal now."
To drive the modernisation of our energy systems and to protect households from energy price rises in the long-term, Government will have to reduce exposure to volatile gas markets through meaningful spending on heat decarbonisation and energy efficiency, to make the UK’s homes affordable, comfortable and ready for net zero," Sincelair concluded.
Industry effort
ADE is an organisation that works to bring the energy sector together to advocate on the priorities for the UK in achieving net zero.
It has over 160 member organisations, which - collectively - aim to drive the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart.
"Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system," Frencham explained.
"For this to happen, energy must work for the user. At ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better," she said.
