Wales has set out a plan for decarbonised heating that would see large scale deployment of heat pumps and heat networks, with hydrogen’s role limited to areas around industrial ‘hydrogen hubs’.
A consultation on the new heat strategy says heat in buildings and industry accounts for over 50% – 53.4TWh – of the total energy demand in Wales, with three-quarters from fossil fuels mainly gas. It wants to decarbonise heat and improve the thermal performance of buildings in order to reduce heat demand.
The document says Wales does not have all the policy levers it needs to decarbonise heat, because many power, such as market pricing mechanisms sit with Westminster.
The document cites the Climate Change Committee’s (CCC’s) concludion that the majority of buildings in Wales need to transition to heat pumps (requiring an upgrade in Welsh electricity networks but enabling a more efficient whole energy system). It says, “Findings from domestic demonstrations across the UK show that there is no property type or architectural era that is unsuitable for a heat pump” although many will require insulation to optimise cost and carbon performance.
Continuing the work of the Future Energy Networks Wales project, the Welsh government will engage with stakeholders across Wales on requirements for the future grid. It will egage with distribution network operators and on their plans and how they integrate with Local Area Energy Plans.
It says “low carbon heat networks will be the least cost path to net zero heat for some areas” and it wants to support new heat networks. It also wants to transition existing heat networks to low carbon heat.
It will consult on a new planning policy to restrict fossil fuel heating in new developments, starting with a ban in commercial developments from 2033, and on phasing out fossil fuel boilers in existing dwellings. Off-gas grid fossil fuel boilers will be prioritised, using non-domestic rates support.
Hydrogen innovation will be supported “local to our hydrogen hubs” and it will engage energy network operators on the plan for hydrogen in industrial areas. It will also look at the infrastructure needed and the opportunities for renewable electricity generation to produce the hydrogen.
A new low carbon funding scheme will help public bodies to deliver high carbon impact but financially challenging low carbon heat projects.
Following the consultation the Welsh government promised an Action Plan that is expected to include: governance arrangements; specific actions to meet our policies; responsibilities and short-term timescales for action; and a measurement and evaluation approach. Furure Action Plans will align with the future Carbon Budgets for Wales.