New industry analysis estimates that the combined flexibility potential of all thermal storage systems available could be 10 GW by 2030, more than double the capacity forecast by NESO in their Clean Power 2030 pathway (4GW).
Unlocking this potential is essential for meeting the Climate Change Committee’s 7th carbon budget, which projects that the flexibility requirement from all thermal energy storage systems has to be at least 9.3GW by 2030.
Doubled network flexibility capacity will have tangible, real world benefits for UK energy consumers, helping to drive down the cost of energy by accelerating the connection of low carbon generation low carbon generation with less need to construct expensive and time-consuming new network infrastructure. Put simply, flexibility enables the UK to squeeze more capacity out of the existing grid. Enhanced network flexibility is essential to delivering the UK Government’s Clean Power 2030 and Economic Growth missions.
BEAMA’s new research indicates that current Government targets risk neglecting the potential of alternative clean heat solutions. These technologies are essential to successfully decarbonising UK heating, tackling fuel poverty – which National Energy Action estimate affects 6.1 million households[3] – and driving UK economic growth.
It’s not a one size fits all approach for domestic heating – customer choice is critical
Currently, just under a tenth of UK homes – 2.6 million in total – have electric heating.[4] While heat pumps offer tangible advantages that could reduce energy costs for many, around 20% of households are unable to accommodate them. Clean Power 2030 must rely on a broad range of heating technologies – including heat pumps, alongside thermal batteries, hot water cylinders, and solar heating solutions – to be successfully delivered within five years and at minimal cost.
BEAMA’s analysis shows that offering a suitable choice of low carbon heating solutions is central to persuading consumers to go electric. Industry is calling on the Government’s upcoming Clean Heat Strategy to prioritise support of a broad range of technologies and solutions to reflect the wide variation in homes, workplaces and buildings across the country, reassuring customers that they have a choice of low carbon heating options.
Alternative electric heating technologies that need to be considered from the perspective of flexible storage include:
Air to air heat pumps
Domestic hot water heat pumps
Modern high heat retention storage heating systems
Phase-change heat batteries
Smart heat batteries
Smart hot water cylinders
Further to the above storage options, we must not forget customers living in very low heat and hot water demand dwellings who would typically use panel heaters, electric radiators, electric underfloor heating and instantaneous hot water appliances.
Supporting flexible storage technologies will also help to unlock investment to create local green jobs and drive UK economic growth. This is evidenced by the recent opening of a £40m manufacturing plant in Derby by BEAMA member Vaillant. The facility, producing hot water cylinders, has added 200 jobs to the local economy.
Government must recognise alternative electric heating technologies offer diverse, efficient, and scalable pathways for decarbonising homes
BEAMA has called on the Government to create an inclusive fiscal and regulatory policy framework of Domestic Energy Support Schemes that currently fail to adequately promote alternative electric heating solutions include, such as the Warm Homes Plan.
Further support should be provided by extending the current VAT exemption on heat pump installations to the full range of electric heating technologies and incorporating into the Boiler Scheme a grant which subsidises the cost of installing flexible energy stores in households.
Kelly Butler, Strategy Director at BEAMA, commented: “Our new analysis gets straight to the heart of one of the key challenges for electrification – engaging the end user.
“One thing is certain, consumers need a clearer view of the suite of technologies that can provide flexible electric heat and hot water systems. This will allow them to identify the right solutions for their current circumstances which can offer immediate bill savings and future financial benefits associated with new flexibility driven time of use tariffs.
The Government has committed to reduce bills whilst delivering an energy transition by 2030, meaning this issue needs to be tackled now before it’s too late.”
Yselkla Farmer, chief executive of BEAMA, commented: “We are at a defining moment for the electrification of heat and hot water, and our research shows that the opportunity from flexible thermal storage is being underestimated and dramatically underutilised.
“Current incentives, Government, and media messaging can create a confusing picture, leaving many consumers to wonder ‘What should I do?’
“We have a responsibility to ensure all households have all of the available options so they can find their own pathway to accelerate their electrification journey.”