Heat generation accounts for a staggering 37% of the UK’s carbon emissions—yet it is not explicitly supported in GBE’s legislative mandate.
By Wera Hobhouse, Liberal Democrat MP for Bath and Association for Decentralised Energy Vice President
With the launch of Great British Energy (GBE), the Government has set itself an ambitious target: lead Britain’s transition to a green energy economy through a publicly owned £8.3bn company. But what Labour’s plan for energy currently lacks is an ambitious commitment to insulate homes, thereby bringing down energy bills, making homes healthier to live in and decarbonising British heat.
Expanding GBE’s remit to include home insulation and heat decarbonisation would signal to the world that Britain is ready to lead the next phase of the green energy transition. This will drive economic growth, creating high-quality jobs and ensuring long-term energy security. But ignoring this opportunity now is a choice that will cost us later in economic competitiveness, public health, and our climate commitments.
Heat generation accounts for a staggering 37% of the UK’s carbon emissions—yet it is not explicitly supported in GBE’s legislative mandate. Whilst lots of GB Energy’s work has been left purposefully vague, GBE Chair Jurgen Maier has described the organisation as a “power generator”—so it seems heat has been omitted for the time being. If we’re serious about reaching net zero by 2050, this is a gap we cannot ignore. We must prioritise decarbonising the heat we do use as well as reducing loss for the heat we don’t, if we’re to meet our climate goals, cut energy bills, and create the green jobs our economy needs.
The first step towards decarbonising heat starts at home. We Liberal Democrats have been pushing to adopt a Zero-Carbon Heat Strategy which would see phased installation of heat pumps, zero-carbon heating solutions and an emergency upgrade programme to rapidly rollout home insulation across the country. Together, these upgrades will play a vital role in decarbonising heat, cutting bills and reducing heat loss. Not only are home insulation upgrades essential for assisting our transition to Net Zero, but they will also be instrumental in ending fuel poverty. With an estimated 13% of households living in fuel poverty in 2023, it’s critical that we treat this as a top priority. We must look to install free home insulation for households on lower incomes to make homes warmer and cheaper to heat, while beginning to tackle the appalling numbers of people in fuel poverty.
Heat networks, decentralised systems that supply low-carbon heat to buildings through a network of underground pipes, are also an important piece of the puzzle. In Bath, we’ve seen firsthand the benefits of decarbonised heat, as around 7% of Bath households are already connected to heat networks, a rate well above the national average. These homes, often in social housing, pay an average heating cost of just £425 per year—less than half of the £1,088 average heating bill across the constituency.
Heat networks are a multifaceted solution that not only lower emissions but also strengthen communities, enhance energy security, and reduce overall energy consumption—benefiting bill payers. For example, homes connected to heat networks consistently consume less energy while enjoying more affordable heating.
The economic case for heat decarbonisation is equally compelling. The UK has an estimated £80-£100 billion investment opportunity in heat networks by 2050. For every £1 invested in heat networks through initiatives like the Green Heat Network Fund, £3 of private investment is attracted. And yet, without government leadership, we’re missing a vital tool in our decarbonisation toolbox. Additionally, the Department for Business and Trade estimates that inward investment in sectors such as heat decarbonisation could create hundreds of thousands of jobs in the green energy sector. These are high-quality jobs that can drive economic growth while supporting the UK’s transition to a sustainable energy system.
While GBE represents an important step toward a greener future, its current focus on electricity generation reflects a limited understanding from the Government around the broader energy transition. Bringing in policy to GB Energy around home insulation and heat decarbonisation would demonstrate that the Government understands the urgency of addressing emissions from all sectors. It would also position Britain as a leader in the next phase of the green energy transition, attracting investment, creating jobs, and ensuring long-term energy security.
Making Britain a clean energy superpower will not happen without a commitment to insulating homes and decarbonising British heat. It’s time to make the bold, but worthwhile choice to tackle emissions and future-proof our energy system.
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