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Last edited 04 Apr 2023

Powering up Britain report March 2023

1 Introduction
2 Relevance to the construction industry
3 Providing a clean, secure energy supply
- 3.1 Power generation
- 3.2 New clean energy systems and infrastructure
4 Addressing demand by increasing efficiency for homes and businesses
5 Supporting the rest of the economy through the transition
- 5.1 Next steps
6 Comments
7 Related articles on Designing Buildings

[edit] Introduction

At the end of March 2023, following the final IPCC AR6 Synthesis report - Climate Change 2023 also issued in March, and the setting up of the new new Department for Energy Security and Net Zero in February, the UK Government published its latest report 'Powering up Britain'.

The report, although welcome, has recieved mixed responses from Industry, with many saying that it does not go far enough in terms of scale and now that time is extremely short it also falls short on speed. This publication follows the latest report from the CCC in 2022 which applauded the Government for its intent but questioned its delivery, saying 'tangible progress is lagging the policy ambition. With an emissions path set for the UK and the Net Zero Strategy published, greater emphasis and focus must be placed on delivery.'

[edit] Relevance to the construction industry

Whilst almost every aspect of the report has impacts on how buildings are likely to be built and powered in the future, how quickly these impacts will be seen is not clear. Specific proposals relating to the design and construction of buildings, within the report which will be most noticeable in the short term are likely to be:

Solar - seeking widespread deployment in commercial, industrial and domestic properties across the UK.
Planning - Five revised energy NPS covering renewables, oil and gas pipelines, electricity networks and gas generation.
Energy efficiency - 300,000 retrofits, consultation on private homes, and Energy Transformation Fund and Climate Change Agreement extensions.
Heat pumps and networks, 600,000 heat pumps p.a. by 2028, with the Green Heat Network Fund and the Heat Network Efficiency Schemes to be extended.
Supporting green skills, Net Zero and Nature Workforce Action Plan in 2024, skills bootcamps in 2023-24 addressing immediate workforce skills needs with 35 bootcamps by the end of 2023.

[edit] Providing a clean, secure energy supply

The first section of the report is outlined below in summary for the full report visit here

[edit] Power generation

Launch of Great British Nuclear (GBN) & the Small Modular Reactor (SMR) which manage future Nuclear Enabling Fund of up to £120 million.

Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) with 160 million to kick start investment in port infrastructure projects.

Solar investment to increase by fivefold by 2035, up to 70GW, enough to power around 20 million homes. recommendation from the Independent Review of Net Zero to set up a taskforce to deliver on this ambition.

[edit] New clean energy systems and infrastructure

Carbon Capture Usage and Storage (CCUS) with up to £20 billion funding announced at Spring Budget. CCUS seen as key to scaling up greenhouse gas removal technologies (GGRs), such as direct air carbon capture and storage and bioenergy with carbon capture and storage, to balance residual emissions from hard to abate sectors.

Hydrogen production by low carbon means looks to increase to up to 10GW capacity by 2030, generating enough clean electricity to power London for a year. The first winning projects from the £240 million Net Zero Hydrogen Fund announced and targeting £11 billion in private investment by 2030.

In terms of the grid the Electricity Networks Commissioner is tasked with advising government on what more can be done to accelerate grid delivery in June, followed by an action plan. Working with industry and Ofgem to reform grid transmission and distribution levels connections process, which delays generation and demand projects in UK.

The planning system or National Planning Policy Framework (NPPF) for local plan-making and decisions, and the energy National Policy Statements (NPS) for nationally significant decisions, as well as the Electricity Act planning. Five revised energy NPS covering Renewables, Oil and Gas Pipelines, Electricity Networks and Gas Generation, with an overarching Energy Statement for consultation, including a new requirement for offshore wind to be considered as “critical national infrastructure”.

Electricity Market Reform to set out a long-term pathway for the UK ETS and will work with the ETS Authority to set this out during the year.

[edit] Addressing demand by increasing efficiency for homes and businesses

The second section of the report is outlined below in summary for the full report visit here

[edit] Energy efficiency

Energy Company Obligation scheme, heralded as the Great British Insulation Scheme, which aims to deliver £1 billion additional investment by March 2026 in energy efficiency upgrades, such as loft and cavity wall insulation. This scheme will be targetting around 300,000 of the country’s least energy efficient homes to save around £300-£400 each year. A consultation by the end of the year will look at how to improve the energy efficiency of owner-occupied homes, whilst the Industrial Energy Transformation Fund and Climate Change Agreement schemes will be extended and trials such as an energy advice service for SMEs.

[edit] Heat networks

Green Heat Network Fund and the Heat Network Efficiency Scheme will gain capital support extended to 2028 to facilitate the continued growth of low carbon heat networks, including £220 million for the Heat Network Transformation Programme over 2025/6 and 2026/7.

[edit] Clean heat

£30 million Heat Pump Investment Accelerator to leverage up to £270 million of private investment to boost UK manufacturing and supply chain and support our commitment to instal over 600,000 heat pumps p.a. by 2028.

[edit] Fuel price rebalancing

Aims to make it easier for consumers to make the switch to green products by rebalancing prices between electricity and gas to remove distortions, accepting the Skidmore Review recommendation that Government should commit to outlining a clear approach to gas vs. electricity ‘rebalancing’ by the end of 2023/4 and should make significant progress affecting relative prices by the end of 2024.

[edit] Supporting the rest of the economy through the transition

The third section of the report is outlined below in summary for the full report visit here

[edit] Next steps

Increased support for industry through the IETF, which is designed to help businesses with high energy use cut their energy bills and carbon emissions by investing in energy efficiency and low carbon technologies. This scheme has a £185 million uplift for Phase 3, bringing the total allocation to the IETF to £500m.

A consultation on carbon leakage, a consultation on potential policy measures to address future carbon leakage risk, where emissions may shift to other countries with lower carbon pricing and climate regulation. A UK Carbon Border Adjustment Mechanism and product standards is being launched which could be deployed from mid-2020s onwards.

Zero Emission Vehicles, between 2030 and 2035, new cars and vans will only be able to be sold if they offer significant zero emission capability. A final consultation on an ambitious Zero Emission Vehicle mandate, requiring an increasing percentage of new car and van sales to be zero emission, wth all new vehicles being zero emission by 2040.

Sustainable Aviation Fuels (SAF) consultation setting out full details of a mandate policy with target trajectories and incentives; with up to £165 million Advanced Fuels Fund; to scale-up research on ultra-low emissions and hydrogen aircraft.

Natural Resources, Waste and F-gasses, 25 measures in the agriculture net zero pathway, many already developed and introduced through the Environmental Land Management schemes, Farming Investment Fund, and Farming Innovation Programme.

2023 Green Finance Strategy sets out to catalyse financial services sector to deliver on commitments, with a Nature Markets Framework which sets out government’s approach to supporting and accelerating growth in nature markets, a key mechanism to help deliver our joint nature and climate goals.

Supporting Green Skills, produce a Net Zero and Nature Workforce Action Plan in 2024. Net Zero Power and Networks pilot working group, with actions by Summer 2023, for use as a template for the other sectoral assessments. Industry and DfE to propose new Skills Bootcamps aimed at addressing immediate workforce skills needs in key low carbon sectors. By the end of 2023, at least 35 different bootcamp courses across England supporting greener construction, transport, and green energy and industry sectors.

[edit] Comments

[edit] Electrotechnical and engineering services body ECA

Leading electrotechnical and engineering services body ECA is calling for a detailed plan to fund the up skilling of Britain’s electrotechnical workforce, following the launch of the report.

This report sets out the steps the Department for Energy Security and Net Zero is taking to ensure the UK’s energy system is secure, low-cost, and low carbon. However, it contains little to no detail about how the country’s labour force will be trained to deliver low carbon installations and green infrastructure.

Meanwhile, ECA has praised the Government’s renewed commitment to electric vehicle charging, with a more than £380 million investment announced for public EV charging points and infrastructure across the country.

ECA has also welcomed plans to rebalance electricity bills using levies as an incentive to move away from gas. The association has long advocated for rebalanced levies to encourage long-term use of renewable energy and move away from fossil fuels.

[edit] ECA Energy & Emerging Technologies Advisor Luke Osborne

“The rebalancing of the electricity market is something we have been calling for, for years. So, we are pleased to see that our voice has been heard in this new report. We also support the commitment to EV charging, but without any funding for upskilling our workforce, this is a hollow pledge for now. We are falling behind on EV charging targets, despite the growing number of EVs on the road, and this trend is likely to continue unless we invest heavily in skilled, competent workers who can connect the dots and solve the net zero puzzle. I fear this report will do little to address the low public awareness of heat pumps and shortage of skilled installers. In many ways, we are still too far back in our Net Zero journey.”

The report includes a range of other measures to boost the UK’s clean energy security, including a three-year extension of the Boiler Upgrade Scheme, and overhaul of planning rules to speed up the construction of new wind turbines and solar panels, and support for carbon capture, home insulation and hydrogen projects.

[edit] Julie Hirigoyen, chief executive at UKGBC

“The Government has today doubled down on new clean energy generation, a positive stimulus at this febrile moment for energy security. But it has missed an opportunity by failing to publish a comprehensive national plan to curb the staggering levels of energy waste from our homes and buildings. Without this, we’re trapped into unsustainable demand for heat and electricity, making it extraordinarily difficult to see how we’ll pay our bills or hit our climate goals.

“Initiatives such as the ECO+ scheme and extension to heat pump support, while welcome, will only reach a fraction of the 27m homes that need retrofitting. Similarly, reforms to the planning system do not include the net zero test recommended by Chris Skidmore MP.

“As our climate emergency intensifies, the Government should be leading from the front by seizing the opportunities of a nationwide retrofit plan that would deliver £56bn to the UK’s green economy, slash energy bills to save households £8bn every year and create 500,000 skilled jobs in a decade.

“We hope that the Government makes use of the opportunities to get on track offered by the Energy Efficiency Taskforce and amendments to the planning system through the Levelling Up Bill.”

[edit] RIBA President Simon Allford

“This is progress which we welcome but this is still not an energy ‘revolution’. It fails to set out the radical change of course needed. The UK will not reach net zero carbon commitments without fresh funding and targeted policies.

The Great British Insulation Scheme, previously announced as ECO+, continues to fall short. Millions of our homes require whole house retrofits, not just insulation. We need a comprehensive National Retrofit Strategy: a long-term programme that will in turn create jobs, up skill workers and deliver healthier, greener homes.

This latest raft of commitments does not go far enough. We need targeted action, and we will continue to work with government to help make this happen.”

This article is based on the contents of the government report "Powering up Britain" published in March, 2023. Comments ECA section via Press Release as "Powering Up Britain: Gov’t listens to some industry concerns, but continues to overlook skills" dated March 31.