PRODUCTS & SERVICES Service of the month Decoding the confusion and chaos in UK energy direction Chris Goggin delves into the complex landscape of current UK domestic energy policy, focusing on the shift towards clean energy dispersal T he current state of UK energy policy is characterised by convolution and chaos, leaving consumers and industry professionals in the dark about its future direction. With the aim of phasing out fossil fuels and embracing significant carbon-reducing alternatives, the UK government faces the monumental task of aligning its actions with the laws it has set in motion. As the nation pivots away from oil and gas, solar, wind and greener gases such as hydrogen or renewal DME are likely to play significant roles in delivering power to UK housing and building stock. For this to happen, a clear and concise strategy is required to deliver infrastructure and installations capable of transporting clean energy into UK properties. Recent developments, however, paint a picture of conflicting priorities. While the UK is committed to reducing carbon emissions, theres a paradoxical focus on expanding North Sea oil and gas production, as reported by The Times. Meanwhile, the largest insurance provider in the UK, Aviva, notes that the government seems to prioritise short-term energy security over long-term sustainability, leading to a lack of investment in large-scale renewable projects. The Energy Transition Readiness Index 2023 emphasises the need for clear governance and regulatory stability to attract investors to UK renewable projects. Unfortunately, the current lack of evidence in these areas poses a challenge, hindering potential capital investments from outside sources. For those involved in the supply chain, including installers, specifiers and consultants of heating and hotwater products, the inconsistent flow of governmental information becomes a significant hurdle. A unified and clear approach is necessary to develop carbonising solutions that align with the nations energy transition goals. Hydrogen exemplifies the confusion permeating the UK energy sector. 46 February 2024 www.cibsejournal.com CIBSE Feb 24 pp46-48 Products.indd 46 Conflicting reports on the future of the national gas transmission network add to the uncertainty. While one report suggests decommissioning the network in favour of widespread electrification, another funded by a UK gas operator proposes a shift to hydrogen, potentially saving billions compared with electrification. Major energy companies are also preparing for a hydrogen-centric future, retrofitting the current gas infrastructure to accommodate hydrogen gas mixes and, eventually, 100% pure hydrogen. However, the lack of a unified direction creates uncertainty for industry players and investors alike. Offshore wind projects, despite government subsidies, face viability concerns, with no bids received in a recent contracts for difference scheme. To attract financial Rinnai operations director Chris Goggin investment, the UK government is aiming to raise subsidies by two-thirds and the starting price by 50% in the next round of offshore wind auctions. Major energy companies specialising in offshore wind are expressing financial concerns or withdrawing from planned projects, citing rising international market costs and insufficient government subsidies. The solar energy sector, while less turbulent, faces challenges such as long waits for Grid connectivity, with some customers told to expect delays of 10 to 15 years. Compared with other economies such as Germany, France and the Netherlands, the UK lags behind in energy policy, lacking infrastructure, financial subsidies, and decisive direction. The result is a shortfall in offering attractive international investment opportunities. For contractors, specifiers and installers, choosing companies that provide a range of decarbonising products becomes crucial. Rinnais H3 range, covering solar, hydrogen and heat pump technologies, aims to meet low carbon needs efficiently. Rinnai believes in providing consistent and transparent updates to help customers navigate the evolving landscape of UK energy policy, ensuring informed investment decisions for clean-energy heating and hotwater systems. For more information visit www.rinnaiuk.com Tel: 020 7880 6245 Email: cibsedirectory@redactive.co.uk 26/01/2024 16:41