Does it still make sense to connect to existing heat networks? Sustainability Director Marie-Louise Schembri responds to concerns about the lack of carbon transparency and slow rate of decarbonisation in existing energy networks.
At a recent Better Buildings Partnership event, concerns were raised about the lack of carbon transparency and slow rate of decarbonisation in existing energy networks.
Current planning policy in parts of the UK requires that new and refurbished buildings connect to existing energy networks (at least for heat) or prepare for connection where a network is planned. Existing networks, however, are typically powered by fossil-fuel or biofuel engines operating at very poor seasonal efficiencies, with ‘low carbon’ heat created as a waste product of the engines that are powering the development.
In previous years – when a greater proportion of grid electricity was produced from higher carbon sources – these engines were producing comparably lower carbon electricity. The resulting waste heat was classified, therefore, as low carbon; making it very attractive to connect. That situation has now changed and the carbon emissions of grid electricity have become much lower, due to some 40% of the UK’s electrical need now being produced by renewables.
As society has become more acutely aware of the burdens of fossil fuel combustion, both business and government have committed to decarbonising their operations. Many businesses have declared a net zero carbon commitment by 2030, or even 2025, while central and local governments have made similar strategic commitments targeting 2050, in alignment with the Paris Agreement.
Most network operators have done the same. However, a substantial change in building regulations this year – aimed at driving the built environment away from natural gas – has dealt them a major blow. The electricity produced by their kit now emits more carbon than the UK’s electrical grid. Long debates have been had, and are still ongoing, between BEIS (The Department for Business, Energy & Industrial Strategy) and heat network stakeholders about a fair transition. But even with some relaxation in the adopted regulations to accommodate a more gradual transition, the net carbon emissions have increased almost two-fold. In addition, existing networks are not complying with a new metric in these same regulations that safeguards efficient energy use and affordability.
Furthermore, the operators of these networks are only obliged to transition to net zero by 2050 – some 28 years away! For the many developers and occupiers who are already connected or obliged to connect to heat networks, this is far too late. In reaction, several networks including Citigen – an energy network run by EOn in the City of London – have just installed heat pumps to reduce their dependency on gas boilers and significantly reduce their carbon emissions. Unless operators transition earlier, and remove the use of gas, customers will struggle to meet energy targets and their Net Zero carbon commitments. Now, on new developments, developers are finding that installing their own heat pumps saves more carbon and removes gas completely, and much sooner.