Current UK energy policy is aiming to introduce wider electrification for issues that relate to domestic energy security and lessening carbon output. One, if not the, reason for this shift in direction away from fossil fuels is due to the potential geopolitical weaponisation of oil and natural gas. How will this influence commercial property owners and their energy options?

Exorbitant cost spikes perpetuate fossil fuels reputation as being unreliable in terms of remaining as a secure source of energy that supports domestic fuel security. As the situations in Ukraine and Iran continue to destabilise trade routes that transport much needed energies across the globe, work to establish alternative and secure fuels that are not sensitive to geopolitical workings is well underway.

Presently the UK is to pursue a route that will see wider electrification being introduced with the expressed aim of advancing renewable energy cultivation and dispersal through the UK electrical grid. The current cabinet and opposition to government hold separate plans to achieve a decarbonised grid.

The recently released report “Decarbonising the Grid Three Scenarios for Achieving Net Zero Power” presents three pathways that explore different routes towards providing clean and cheap energy for UK customers. An independent energy market analytics company – Aurora Energy Research has reviewed each pathway and has provided their interpretation of feasibility for Policy Exchange, a current government think tank. A think tank is a research institute that aims to influence domestic and international policy by highlighting ideas and attitudes associated with each political party.

The three scenarios chosen by this report are: Net Zero 2030 plans under the opposition; Net Zero 2035 guided by the current government and Business-as-Usual.  The third “Business-As-Usual” model follows the current trajectory of policy development and market conditions for the British power sector.

This article will ignore the “Business-as-Usual” model as this would also fall under current government plans. These paths focus on Net Zero status being achieved in 2030 and 2035 and what action must be undertaken to realize this ambition.

The main argument of this report states that the British energy grid is better placed to decarbonise in the year 2035 using the opposition plan rather than the 2030 strategy that the current government prefer. However, there are objectives that both parties agree upon in principle, such as the expansion of capacity in renewables.

Differences in approach is evident in the separate timeframes each party believe can deliver feasible and tangible results. The current government plan to decarbonise the grid by 2030 whilst the opposition to the government say that a 2035 would be more appropriate. The report summarises the 2030 approach as follows:

“Aurora’s modelling shows that NZ 2030 is deemed an infeasible scenario, justified by an insufficient time available to conduct what would be a radical overhaul of the power system, policy, planning systems and investment landscape. The speed required to build critical technologies – including offshore wind, onshore wind and solar – would need to increase to multiple times their historical installation speed, as would investment in grid capacity.”

Both commercial and domestic heating will be heavily influenced by a preference towards wider UK electrification. Gas and electrical transmission networks are busy upgrading high voltage cables and overhead wires as part of a £30 billion investment package over five years. This means that work has begun on adapting existing infrastructure to be able to transport greater amounts of renewable power from source to end-user.

To prepare for the implementation of UK electrification, property owners of either domestic or commercial buildings should consider a heat pump as their primary source of heating and hot water.

The current government will require huge amounts of capital investment to achieve their aim of decarbonising. Aurora has calculated that £15.6 billion a year until 2030 is required (total £93.5 billion) and a further £4.4. billion a year from 2031 – 2035 (£22.5 billion) equating to a total of £116 billion over the next 11 years.

The opposition to government plan to decarbonise the UK’s power grid by 2035 and will require £8.2 billion a year of additional investment until 2030 – a total of £49.3 billon. A further £11.1 billion a year of additional investment from 2031 – 2035 a total of £55.3 billion. The total accumulative investment over 11 years will amount to £104.6 billion over next 11 years.

The 2035 approach is regarded by Aurora as more achievable due to the rate of introduction required in new and updated technology and policy amendments. The investment landscape is also considered more viable within this timeframe.

Both the current government and opposition party are dedicated to decarbonising the energy grid; however, they are yet to agree on an appropriate pathway that secures beneficial economic and societal benefits. The current government believes decarbonising the UK energy grid by 2030 can be achieved through capacitating £116 billion of investment, whilst the current government’s opposition plan to extend the 2030 timeline to 2035 and absorb £104 billion of additional subsidy. Time and finance are central issues to both strategies.

Commercial heating will be dictated by the decision to embrace wider electrification throughout the UK. To prepare for this transition commercial and domestic property owners should be aware of the various heat pumps that are available on the open market.

Rinnai’s range of R290 and low-GWP high temperature commercial heat pump technology consist of a wide range of models extending from our large residential air source heat pump range, which includes models between 6kW to 27kW, making them a flexible option for your hot water and central heating needs.

Rinnai’s commercial heat pumps are available from 40kW to 410kW models that are proven to lower energy bills versus some conventional heating systems including fossil fuel boilers. The commercial range also used natural refrigerants such as R290.

To take advantage of Rinnai Design Support Services and review the ideal solution to reduce energy costs, maximise return on investment and apply renewable energy sources and lower carbon footprints, use this; –

https://www.rinnai-uk.co.uk/contact-us/help-me-choose-product

Rinnai will continue to provide information to the UK customer that can assist in product and purchase selection. All knowledge that improves customer’s awareness regarding current and future policy will be shared accordingly with contractors, specifiers, installers and all interested parties.