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ENA welcomes £55bn decarbonisation opportunity highlighted by NIC

22 May 2018

Press contacts

ENA Press Office

+44 (0)20 4599 7691
[email protected]

Energy Networks Association (ENA) has today welcomed new research published by National Infrastructure Commission (NIC) showing that a joined-up approach to the decarbonisation of our energy infrastructure could save £55bn by 2050, as much as £2,000 for each household in Great Britain.

NIC recently commissioned independent research by Element Energy & E4tech to investigate the cost of decarbonising the UK’s heat infrastructure, including space-heating and hot water. The final report, circulated to stakeholders for the first time this week, finds that an integrated approach to decarbonising our energy infrastructure could deliver significant savings. The report comes as the Government continues to develop decarbonisation policies for heat and transport necessary for the UK to meet its legally binding carbon emissions targets under the Fourth and Fifth Carbon Budgets.

ENA believes that a “Whole-System Approach”, based on our energy networks using new smart technologies to work more closely together in an integrated way, can build on the strength of our existing energy network assets to deliver decarbonisation at lowest cost. ENA has called for the Government to investigate what role that Approach could have as part of the Clean Growth Strategy.

David Smith, CEO of ENA, says:

“Britain’s energy network operators are committed to creating an efficient, smarter, cleaner energy system fit for our homes and businesses. Decarbonising heat is one of the greatest challenges facing our energy system, and ENA welcomes the independent National Infrastructure Commission’s contribution to the evidence base on future options. Our power, heat, transport and waste sectors are all interdependent, and so must be the solutions for their decarbonisation.

“The NIC figures suggest that a Whole-System Approach to decarbonisation, which involves planning how to use our energy network infrastructure in a more integrated way by using low carbon gasses like hydrogen, could save £55bn to 2050 compared to an electricity only solution.”

Notes to editors

  • The £55bn by 2050 figure is calculated from the difference between the mid points of the “large scale options” set out in an infographic provided by NIC: https://www.nic.org.uk/wp-content/uploads/Costs-of-Low-Carbon-Heating-May-2018.pdf
  • The £2000 by 2050 is calculated by dividing £55bn between Britain’s 27 million households, equalling £2037 each.
  • The report can be found online at https://www.nic.org.uk/wp-content/uploads/Element-Energy-and-E4techCost-analysis-of-future-heat-infrastructure-Final.pdf
  • A Whole-System Approach is based on our energy networks using new smart technologies to work together in an integrated way, building on the strength of our existing gas and electricity network assets:
    • Its means looking at optimal network investment and operational decisions for the whole energy network, not just the individual parts in isolation.
    • It also means considering interactions across energy vectors (e.g. heat networks, energy storage or transportation) so that wider options and value can be taken into account.
    • This work is supported by consideration of the connections, data links, interfaces, coordinated planning opportunities, potential impacts and shared learnings across electricity and gas network and other energy vectors, both currently and in the future.
  • ENA’s response to the Clean Growth Strategy can be found online here at http://www.energynetworks.org/assets/files/FINAL%2020171221%20Clean%20Growth%20Strategy%20v6.pdf
  • Fourth and Fifth Carbon Budgets cover the periods of 2023 to 2027 and 2028 to 2032 respectively.

About Energy Networks Association

Energy Networks Association (ENA) is the industry body representing the companies which operate the electricity wires, gas pipes and energy system in the UK and Ireland.

ENA helps its members meet the challenge of delivering electricity and gas to communities across the UK and Ireland safely, sustainably and reliably.

Its members include every major electricity and gas network operator in the UK and Ireland, independent operators, National Grid ESO which operates the electricity system in Great Britain and National Grid Gas which operates the gas system in Great Britain. Its affiliate membership also includes companies with an interest in energy, including Heathrow Airport and Network Rail.

What are energy network operators?

Energy network operators manage and maintain the wires, pipes and other infrastructure which delivers electricity and gas to your home, business and community. They are private companies which are regulated by Ofgem and employ around 45,000 people in the UK and Ireland. They are represented by their industry body, Energy Networks Association (that's us).

Energy supplier or network operator? Energy network operators are entirely separate to your energy supplier, which is the company that bills you for using electricity and gas. Energy suppliers and generators are represented by Energy UK.

Press contacts

ENA Press Office

+44 (0)20 4599 7691
[email protected]