£70 billion of funding for the National Wealth Fund announced in today’s Autumn Budget marks a crucial step forward for the energy industry and its role in ensuring the transition to net zero is a just one, says the Association for Decentralised Energy (ADE).
The trade association, representing more than 150 organisations, advocates for heat networks as the lowest cost pathway for decarbonising heat in urban areas. Heat networks already attract £3 of private investment for every £1 of public funding. Heating currently accounts for 37% of the country’s carbon emissions, however, research has shown that heat networks could meet 40% of the UK’s heating needs, whilst driving economic growth.
The Government’s pledges of funding through the National Wealth Fund are a positive step in ensuring that the critical amount of available private investment can be unlocked. The ADE argues now this investment must be used to support the heat network sector to encourage economic growth and a strong return on public investment. The trade association encourages the Government to build on policies announced in the budget such as £3.4 billion towards heat decarbonisation and household energy efficiency over the next three years as part of the Warm Homes Plan.
CEO at the ADE, Caroline Bragg, said: “The overall fiscal climate is difficult, but it is encouraging to see a renewed focus on investment in infrastructure. The UK Infrastructure Bank struggled to achieve the mandate it was given, and it was disappointing to see almost no investment by the Bank in heat networks.”
“With this renewed funding through the National Wealth Fund we hope that this can be the start of a more fruitful partnership. Now is the time to put the UK on the lowest cost path for heat decarbonisation so that Britain can truly become a clean energy superpower”
For further interview or comment, please contact external.affairs@theade.co.uk.
