UNVEILING THE TRUE MEANING OF VALUE ENGINEERING IN COMMERCIAL HOT WATER

  

Rinnai has released another whitepaper – “Optimizing Domestic Hot Water Systems for Archetype Care Homes: A Value Engineering Approach” which, within the main body of the analysis, is a case study demonstrating the optimal solution for DHW provision in an archetype care home with specific requirements including a 20% reduction in carbon footprint, OPEX considerations and available space for only 2 heat pumps.

 

CLICK HERE FOR THE RINNAI HELP ME CHOOSE A PRODUCT PAGE

There are five main solutions presented in this case study for optimal DHW requirements in an archetypal care home:

  1. Electric immersion cylinders
  2. Heat pumps
  3. High efficiency gas water heaters
  4. Hybrid system comprising of 20% heat pump and gas water heaters
  5. Hybrid system comprising of 40% heat pump and electric immersion cylinders.

Due to the requirements of the care home and assessing all possibilities against the pre-determined criteria, solutions 3,4 and 5 were viewed as being worthy of further analysis.

Step 4 of the value engineering methodology proposed by Rinnai UK, analyses solution against the current installed system of three non-condensing storage water heaters.

Figure 1 showcases the carbon performance of solutions 3, 4 and 5 as well as the currently installed system of three storage heaters. The colours of each system are highlighted at the top of the graph in blue (Solution 3), orange (Solution 4) and grey (Solution 5).

Figure 1: Carbon Emissions forecasted over 5 years.

Figure 2 shows operating costs over 5 years for all three solutions (blue, orange and grey) and the currently employed gas storage system (yellow) is also provided below. Solution 3 highlighted in blue, the gas system costs £52,806. Solution 4, the hybrid system will cost £56,746, whilst solution 5, the all-electric system costs £149,666.

Figure 2: Operating costs forecasted over 5 years

 

Of note is the costs of electricity in the UK which are being targeted by the government to fall by 2035 and be an integral part of cleaning the grid – and note that Figure 2 utilizes Govt forecast statistics.

Figure 3, below, is a graph that illustrates the CAPEX costs associated with each solution. Solution 3 (blue), high-efficiency gas water heaters will cost £25,500. Solution 4 (orange), the hybrid system comprising of 20% heat pump and gas water heaters costs £63,913 and finally, solution 5 (grey) the all-electric system comprising of 40% heat pump and electric immersion cylinders will cost £81,600.

Figure 3: Capital Expenditure required for each solution

 

Figure 4 is the final graph that gives the 5-year life cycle costs associated with each system. Solution 3, the gas system (blue) will cost £78,306. 30. Solution 4, the hybrid system (orange) will be £120,658.54. And finally, Solution 5 (grey) – the all-electric system will cost £231,266.35.

Figure 4: Lifecycle costs forecasted over 5 years

Therefore, the decisive question for the site is whether the reduced carbon emissions of Solution 5 is perceived as far more valuable than the lower lifecycle costs of Solution 4.

Due to the customer’s brief of requirements to include: –

  • 20% reduction in carbon footprint
  • OPEX considerations
  • space for only two heat pumps –

The optimal solution for DHW provision is the hybrid system that includes the 20% heat pump and gas water heaters. It delivers reduced carbon emissions and financial expenditure and can operate within a space limited environment.

 

Rinnai aims to demonstrate to specifiers, consultants and system designers that the company’s technology provides practical, technical and economic solutions for businesses and sites who wish to significantly reduce their carbon emissions.

RINNAI OFFERS CLEAR PATHWAYS TO LOWER CARBON AND DECARBONISATION PLUS CUSTOMER COST REDUCTIONS FOR COMMERCIAL, DOMESTIC AND OFF-GRID HEATING & HOT WATER DELIVERY  

  • Rinnai’s range of decarbonising products – H1/H2/H3 – consists of hot water heating units in gas/BioLPG/DME, hydrogen ready units, electric instantaneous hot water heaters, electric storage cylinders and buffer vessels, a comprehensive range of heat pumps, solar, hydrogen-ready or natural gas in any configuration of hybrid formats for either residential or commercial applications. Rinnai’s H1/2/3 range of products and systems offer contractors, consultants and end users a range of efficient, robust and affordable low carbon/decarbonising appliances which create practical, economic and technically feasible solutions.
  • Rinnai is a world leading manufacturer of hot water heaters and produces over two million units a year, operating on each of the five continents. The brand has gained an established reputation for producing products that offer high performance, cost efficiency and extended working lives.
  • Rinnai products are UKCA certified, A-rated water efficiency, accessed through multiple fuel options and are available for purchase 24/7, 365 days a year. Any unit can be delivered to any UK site within 24 hours.
  • Rinnai offer carbon and cost comparison services that will calculate financial and carbon savings made when investing in a Rinnai system. Rinnai also provide a system design service that will suggest an appropriate system for the property in question.
  • Rinnai offer comprehensive training courses and technical support in all aspects of the water heating industry including detailed CPD’s.
  • The Rinnai range covers all forms of fuels and appliances currently available – electric, gas, hydrogen, BioLPG, DME solar thermal, low GWP heat pumps and electric water heaters More information can be found on Rinnai’s website and its “Help Me Choose” webpage.
RINNAI FULL PRODUCT AVAILABILITY 24/7 FOR NEXT DAY DELIVERY of
ALL HOT WATER HEATING UNIT MODELS INCLUDING 48-58kW UNITS-
 SAVINGS OF
    20%    REDUCTION of opex cost
30%   REDUCTION of initial cost
15%   REDUCTION in carbon
75%   REDUCTION of space
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GEZE UK welcomes two new members to its management team

Lewis Tandy, Marketing Manager and Allan Randall, National Specification Manager, GEZE UK

GEZE UK, a leading manufacturer of door and window control systems, has welcomed two new members to its management team; Allan Randall as National Specification Manager and Lewis Tandy as Marketing Manager.

 Leading the GEZE UK Specification team

Allan will lead GEZE UK’s specification team, playing a critical role in supporting architects, engineers and end users to deliver innovative technical solutions for all GEZE products. With a proven track record of success in specification management, project coordination, and client relations, Allan will ensure compliance with all the latest legislation and regulations.

 

“I’m looking forward to starting my journey with GEZE UK, bringing over 20 years of commercial experience in the A&D sector. I will carry on taking the GEZE name out to the specification marketplace and continue to offer the best product, provide the best service and constantly improve everything we do.” – Allan Randall, National Specification Manager GEZE UK

 

Welcoming our new Marketing Manager

As the new Marketing Manager, Lewis is set to lead our marketing efforts and drive innovative campaigns that resonate with our customers. His expertise in digital marketing, content creation, and market analysis will be invaluable as GEZE UK continues to grow and adapt in today’s dynamic marketplace.

 

“I am very excited to be joining GEZE UK. I look forward to collaborating with the talented team here to create impactful marketing initiatives that inspire our customers and strengthen our brand presence.” – Lewis Tandy, Marketing Manager GEZE UK

 

Andy Howland, Sales and Marketing Director of GEZE UK, added:

“We are delighted to welcome both Lewis & Allan to the GEZE UK Management Team. I am confident that with both their previous experience and market knowledge we will continue to grow our market presence within the UK.”

CLICK HERE TO VISIT THE WEBSITE

 

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SIPs Kits for the Falklands

A PERTHSHIRE construction business has shipped eight of its specialist SIPs (structural insulated panels) home kits on an 8,000-mile journey to the Falkland Islands.

Family firm JML SIPs, based in Auchterarder, is more accustomed to dispatching materials UK-wide including some of Scotland’s remote islands, and its founding director John Langley said the initial enquiry from a developer in the South Atlantic came “out of the blue”.

The developer assessed several potential suppliers before giving its business to JML. Now, the initial £500,000 order has been loaded into shipping containers for the six-week voyage to Port Stanley, with a stopover in the Uruguayan capital Montevideo to transfer to a smaller vessel.

“The developer wants to deliver high-quality, low-energy housing for the island community,” Mr Langley explained. “Housing is in high demand but we have been told there is limited choice and costs are very high.

“We developed the designs and took things forward to the construction phase at our Auchterarder factory.”

Until now, the business has sent SIPs the length and breadth of the UK, the furthest being to Shetland and Land’s End.

SIPs director at JML, Derek McIntyre, explained:

“The kits are ideal for remote locations where access can be challenging. In addition to using all manner of ferries, we have called on helicopters and landing craft to reach inaccessible peninsulas.

“SIPs are ideal to erect on-site because you can quickly get them wind and watertight. They are very well insulated, warm and airtight.

He added: “The climate in the Falklands is much like the Orkney Islands. Our units are up to seven times stronger than standard timber frame construction, so they’re ideal for coping with the fierce winds which whip in off the South Atlantic.

“In addition to the initial eight SIPs kits we are also supplying all the finishings, including doors, kitchens etc, which have been sourced from companies in Perth and Kinross and Fife wherever possible.

“These are currently being loaded into a second batch of containers heading for the Falklands later this month and we are hopeful to dispatch even more kits to the islands for other sites which are at the development stage.”

JML Contracts marks its 20th anniversary next year and employs more than 60 permanent staff, doubling numbers in the last five years.

Its designs have featured on TV programmes such as Grand Designs, and a property in Torridon, which JML supplied and erected a SIPs kit for, won the RIBA House of the Year in 2018.

A home completed on the northwest coast of Scotland sees the firm shortlisted for the National Build It magazine awards, with the ceremony being in London on November 8.

Source: The Herald

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CLEAN POWER PURCHASE

Tesco PLC and Shell PLC  have struck a deal to buy energy from the UK’s biggest solar farm, providing up to 10% of the supermarket chain’s UK electricity from next year and helping power the oil giant’s electric vehicle charging stations.

The 15-year deal for electricity from the 560,000 solar panel-strong Cleve Hill Solar Park site in Faversham, Kent is Tesco’s largest power purchase agreement to date, the FTSE 100 grocer said.

It will power the equivalent of 144 of Tesco’s large stores, with the 373-megawatt solar farm, currently under development by Texas-based Quinbrook Infrastructure Partners, set to open in 2025.

“We’re delighted to be announcing such a significant step in our journey towards carbon neutrality across our own operations by 2035,” Tesco chief executive Ken Murphy said.

“With its ability to provide vital energy storage infrastructure, it’s a key part of the renewable energy strategy in the UK.”

Clean power purchase deals signed by Tesco, with the likes of ScottishPower, Schroders Greencoat and EDF, will collectively provide 45% of Tesco’s anticipated electricity demand by 2030, the UK’s largest supermarket added.

Shell, meanwhile, arranged a 10-year agreement with Quinbrook to manage the capacity secured under a contract-for-difference in the UK’s 2022 renewable power auction.

Some controversy surrounded the deal, however, as the project gained planning permission despite local opposition, where it was hoped the electricity from the site would be for residential use, with the output enough to power more than 100,000 homes.

Tesco’s deal covers 65% of the output from the site, with Shell taking the remaining 35%.

“This project was approved on the premise that it would power homes, not petrol stations and supermarkets,” Vicky Ellis, of the Kent branch of countryside charity CPRE, told the Telegraph.

“The irony of a major supermarket such as Tesco and a prominent oil producer such as Shell buying into the green energy market to run their petrol stations and supermarkets is not lost on us.

“We suspect this is another example of greenwashing,” said Ellis.

After years of local protests, the 860-acre scheme was approved in 2020, currently under construction on farmland near Graveney salt marshes.

An application for a 150-megawatt battery storage facility at the UK’s biggest solar farm was refused earlier this year, as campaigners raised safety concerns about the lithium ferro phosphate (LFP) batteries used to store the energy.

LFP batteries are “more subject to explosion risk than other types,” according to a Swale Borough Council report.

Source: Proactive Investors

 

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Offsite at Los Angeles International Airport

Credit: Los Angeles World Airports

Los Angeles World Airports (LAWA) has begun the process of relocating all nine segments of the Midfield Satellite Concourse (MSC) South project from the offsite construction location to the airfield at Los Angeles International Airport (LAX).

Upon the project’s completion, MSC South will serve as an extension of the West Gates at Tom Bradley International Terminal, offering approximately 13,500m2 of space and eight gates for narrowbody aircraft.

This relocation began as the airport marked the successful delivery of the project’s third segment to the project site, which is located south of the West Gates at Tom Bradley International Terminal.

The MSC South project is being built using a technique called offsite construction and relocation (OCR), which enables segments of a project to be constructed at a different location before being transported to the final site for installation. Construction of the segments began earlier in 2024 just north of LAX’s northern runways and outside of the airfield operations area, allowing for an unprecedented level of operational flexibility and workforce inclusion, with minimal impacts on airport operations.

“LAX’s modernization applies to more than just the projects we build. It includes taking on bold and modern construction methods like offsite construction and relocation that will enable us to deliver incredible facilities like MSC South, while saving time and money and allowing us to create jobs for our local workforce,” said Michael Christensen, chief airport development officer of Los Angeles World Airports. “The partnership and collaboration between LAWA, W.E. O’Neil [general contractor] and the entire project team is what brought us to this milestone, and I look forward to the project’s final completion next year. Together, we are setting a new standard for innovation in airport infrastructure.”

Each scheduled segment relocation begins around midnight, following the temporary closures of Runways 24R and 24L. Segments are transported using two self-propelled modular transporters (SPMT) from Mammoet, which are placed under each side of the segment. After final checks and verifications, the segment begins its 2.8km trip to the project site at a speed of approximately 2.4km/h, escorted by LAWA and project staff members in vehicles and on foot, who also monitor for foreign object debris or possible unforeseen issues. The runways are immediately reopened following thorough inspections by LAX airport operations staff.

The construction team delivering MSC South under W.E. O’Neil is comprised of local workers, with more than 30% representation from the Los Angeles workforce. Because the segments were constructed using the OCR method, contractors were able to include workers who may not have been eligible to perform work on an active airfield. The project includes 374 local hires and two HireLAX Apprenticeship Readiness Program graduates. More than 32% of total work hours to date have been completed by local workers, surpassing the project’s goal of 30%.

“I am so proud of our team on achieving this project milestone,” said Michael Byrne, executive vice president of W.E. O’Neil. “There is still a lot of work to be done from now until MSC South is complete, but there is no doubt in my mind that the team assembled on this project includes some of the best professionals our industry has to offer, and we will be back to celebrate the completion of this landmark project with our partners at LAWA.”

Overnight relocations of the remaining six segments will continue throughout the month. Once all nine segments are in place, project crews will assemble them together and continue construction at the site through 2025.

 

Source: Passenger Terminal Today

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FUTUREBUILD JOINS FORCES WITH INNOVATE UK AND NHDG FOR THE BIG RETROFIT CHALLENGE

  

Futurebuild, in partnership with Innovate UK and the National Home Decarbonisation Group (NHDG) has launched its Big Retrofit Challenge, a bold new competition aimed at unearthing game-changing solutions in home decarbonisation.

 The Big Retrofit Challenge offers a unique opportunity for entrepreneurs and companies to showcase their innovations in front of key industry players and get their ideas to the market. The innovations that come through the competition should aim to either directly address central challenges to the sector or improve wider processes for the delivery of projects that help consumers live in healthier homes, tackling issues such as exposure to damp and mould and alleviating fuel poverty.

The judges are looking for innovations that go beyond just products, including new systems, approaches, solutions, and processes that contribute to creating healthier homes. Entries are open to UK-registered businesses that have an annual turnover of £15 million or less, with priority being given to less established organisations. The submitted solutions must be suitable for retrofitting or renovating existing homes or non-residential properties. While solutions designed for new builds are also welcome, they must demonstrate applicability to retrofit projects as well.

Six shortlisted winners will have the chance to pitch their solutions on stage at Futurebuild’s National Retrofit Conference, and attend a networking morning to showcase their innovation to NHDG members with each winner having allocated slots to network directly with its members. Winners will also be given the exciting opportunity to discuss with NHDG members the potential of piloting their technology on a live decarbonisation scheme, accelerating their path to market and turning ideas into reality. It offers shortlisted winners a unique opportunity to actively work with the private sector to deliver retrofit.

Martin Hurn, Event Director at Futurebuild, said:

“The Big Retrofit Challenge is about turning bold ideas into impactful solutions. We are excited to partner with Innovate UK and the National Home Decarbonisation Group to create a powerful platform where innovators can showcase their game-changing technologies that will accelerate the decarbonisation of homes across the UK.”

Mat Colmer from Innovate UK, and Senior Innovation Lead for Construction and Net Zero Heat at UK Research and Innovation, also commented on the competition:

“Innovation is key to solving the complex challenges we face in home decarbonisation. The Big Retrofit Challenge provides a crucial opportunity for cutting-edge solutions to be tested and scaled, ultimately helping the UK meet its net zero targets while improving the quality of housing for consumers.”

Paul Rogers, National Decarbonisation Manager at CLC Group, and member of the National Home Decarbonisation Group who are managing The Big Retrofit Challenge on behalf of the team, said:

“By collaborating on the Big Retrofit Challenge, we are supporting the discovery and implementation of solutions that address the urgent need for greener, healthier homes. This competition will help unlock innovations that reduce fuel poverty, improve living conditions, and advance the UK’s decarbonisation agenda.”

The Big Retrofit Challenge is an inspiring step towards transforming the UK’s housing sector and achieving net zero goals. By fostering bold innovation and collaboration, the competition aims to deliver real-world solutions that will make an impact on the environment and communities across the country.

CLICK HERE NOW FOR YOUR CHANCE TO MAKE A REAL IMPACT

Further criteria and guidelines are found on the application form.
The competition will close at 11am on Thursday 28th November 2024.
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PropConnect cements itself as ‘go to’ event for construction industry in Northants

 

Two construction business owners in Northamptonshire have joined forces to launch a sector specific networking event for the county.

 

The event – PropConnect – was created by Parm Bhangal, managing director of Bhangals Construction Consultants, and Matthew Abraham, managing director at FormFive after the duo kept bumping into each other attending events in London and realised there was demand for a networking event closer to home for those working in the construction industry.

 

Matthew (left) and Parm at the launch of PropConnect

 

The inaugural PropConnect event took place on Thursday, October 3 at Bhangals Construction Consultants’ recently refurbished offices at Grange Park, Northampton and attracted more than 80 guests from the construction industry who were based in Northamptonshire. This included structural engineers, architects, quantity surveyors, contractors and modular build specialists.

 

Those who attended the early evening event were treated to speeches by Parm and Matthew, a free bar and buffet, and three hours of informal networking.

 

 

 

Matthew said:

“We wanted to create an event that brought together businesses in Northamptonshire, small and large, from many different but related disciplines, and see them grow in the property and construction sector through building local connections and meeting people they have never met before on their doorstep.”

 

Parm added:

“Construction is all about collaboration and communication and you can only do that by having conversations with people about the business sector you working are in. When I looked around the room at the first PropConnect event, I could see some incredible businesses specialising in all areas of construction and property, talking to each other. I’m really proud of what we are doing with PropConnect and I hope that the group grows and those who attend continue to benefit from the connections they make and relationships they build.”

 

PropConnect will be a quarterly networking event going forward, with the next meeting taking place in the new year. Visit prop-connect.co.uk to find out more.

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What features in new housing builds are priorities compared to a decade ago?

It is said that over 300,000 new homes a year are needed to be built in order to keep up with the UK’s growing population. Between 2022 and 2023, just over 200,000 were built – a 60% increase from the 125,000 new homes a decade ago. This increase, described as the ‘race to build new homes’, isn’t just about numbers either, as new builds are also rapidly adapting to meet modern demands.

More than ever before, there is a focus on new-builds reaching higher standards in technological advancements, sustainability, and modern lifestyles, but what exactly has changed? The following article from property and construction specialists Watts reveals how housing priorities have changed over the past decade, and what we can expect in the years to come.

Environment and sustainability

Although the UK formally incorporated sustainability into its building regulations in the early 2000s, the past decade has seen a larger commitment to reducing the carbon footprint of new-builds; highlighted by the new regulations introduced in June 2022. These new regulations, set to help the UK deliver net zero, require that CO2 emissions from new build homes must be around 30% lower than current standards, bring the banning of gas and oil boilers, and outline that each new build must come with EV charging points, among many others.

As house-building policies become increasingly linked to net-zero goals, new-builds are progressively being made from responsibly sourced materials, low-VOC paints, and modular building methods to reduce waste and promote efficiency. Additionally, modern homes are being designed to promote energy conservation, whilst reducing the reliance on non-renewable energy. For instance, In Fife in Scotland, 80 new builds were set to be Gas free, allowing homeowners to rely less on energy consumption to fuel, heat, and light their homes.

Thanks to modern building practices, just under 1 million homes in England and Wales have an EPC of C++, compared to just 661,000 homes a decade ago.

Smart technology

This decade has witnessed the rise of the smart home, where an emphasis on smart technology such as lighting, smart security systems, HVAC controls, and pre-installed energy-efficient appliances – all integrated into one main tech ecosystem – have become commonplace. According to Samsung’s Smart Home Buyers Index, nearly 80% of people looking to move home in the next five years want their next home to be a smart one.

Smart technology has revolutionised modern living, with it offering not only more practical ways of living, but also its ability to improve energy efficiency, reduce carbon emissions, and reduce costs on the consumer.

 

Lifestyle and well-being 

Finally, developers have recognised the importance of health and well-being in a competitive market. In contrast to more compartmentalised and function-focused layouts from previous decades, there is a growing demand for multipurpose spaces, open-plan living, home offices, outdoor spaces, alongside increased access to community – especially post-pandemic.

A study conducted by Natural England demonstrated that city parks, community gardens, playing fields, and other urban sites were the most visited type of green space in England, and that living within 100 metres of such an area can raise house prices by an average of £2,500, demonstrating that addressing the housing crisis while focusing on both economic and social well-being adds significant value.

This emphasis on well-being has also brought biodiversity into focus, as specialist hedgehog fencing, bat boxes, and native tree planting are being incorporated into developments.

To conclude, in the face of growing challenges, new house builds are being looked at with a long-term vision. In 2024, looking forward to 2030, homes are evolving from simply providing basic shelter, to addressing both national and global needs. Compared to a decade ago, modern homes are not only a band-aid to accommodate a growing population, but they are also becoming a driving source and remedy to sustainability, energy efficiency, and community well-being. By ensuring that new homes are equipped to meet the challenges of the coming decades, we are laying the foundations for a more resilient and sustainable future.

 

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Local Services ‘increasingly threadbare’ – including planning

Planning departments hit hardest by staff shortages

Planning departments are facing the worst workforce shortages, with eight out of 10 experiencing recruitment and retention issues, new research has revealed ahead of the budget.

The District Councils’ Network (DCN) has warned that workforce shortages at the local level caused by strained budgets could undermine the Government’s housebuilding plans.

In a survey of England’s district councils, the DCN found that 84% of planning departments were struggling to recruit and retain staff.

The poll, which had responses from 80 local authorities, also revealed that building control (49%) and housing and homelessness services (31%) faced personnel shortages.

The DCN’s research also revealed the scale of extra spending caused by wage increases.

The organisation’s members on average had to budget an additional £881,000 each in extra pay for 2024-25 – an increase in 5.2% across the district council sector as a whole.

They have also budgeted for further rises of 3.3% in 2025-26 and 3.1% in 2026-27.

Cllr Jeremy Newmark, DCN’s finance spokesperson, commented that cuts have left services ‘increasingly threadbare’ which has meant the burden on remaining staff has grown.

‘Local government is about place leadership and driving change in communities and it should offer prospective staff a rewarding career – but at the end of the day unless we get adequate funding that allows departments to function properly and staff to be paid fairly we will see more of our workforce leave to more lucrative roles elsewhere.’

Source: LocalGov

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The UK is ‘dangerously underprepared’ for future energy crisis

The ECC, a high-level group of experts including representatives from Energy UK, CBI, Citizens Advice and National Energy Action, was established to review the impacts of the energy crisis on households and businesses and make recommendations to better equip the country to withstand possible future energy crises. They found that:

  • British households and businesses were hit harder than many other European countries because of high dependence on gas for heating and power generation.
  • Household billpayers ‘paid the price’ for the slow pace of improving leaky and damp housing stock, delays to new-build efficiency standards, and missed opportunities to build more renewables like onshore wind, according to the report.
  • Poorly targeted support schemes and the slow pace of improving home energy efficiency meant that the poorest households suffered, and pushed up the overall cost of the crisis for the UK, driving up national debt.
  • The impact on some vulnerable households and businesses has been catastrophic’: nine in ten households cut back their energy use, the number of households in fuel poverty reached around 7.5 million, and GB households owe around £3.5 billion to energy companies.
  • Almost one in ten firms (8%) reported ceasing operations for some or all their business and one in five (22%) said that they would draw on cash reserves in response to higher energy costs.
  • The energy crisis drove the wider cost of living crisis and stifled economic growth.
  • Too little progress has been made since the start of the energy crisis to reduce the UK’s reliance on gas by insulating homes and scaling up the installation of heat pumps.

This is not the first time the UK and other countries have been affected by a sustained energy price shock. The recent crisis is different, however. It affected gas prices rather than oil prices. Given the importance of gas for homes, businesses and electricity generation, the UK was particularly vulnerable to its impacts.” – Jim Watson, Director, UCL Institute of Sustainable Resources

Recommendations

It’s clear from the ECC report that the UK needs to accelerate its low-carbon transition to improve its resilience to another energy crisis. To do this they recommend that the UK:

  • Develops a clear strategy for shifting away from fossil fuels, particularly gas.
  • Increases public investment in home energy efficiency to improve millions of cold, damp, unhealthy homes.
  • Introduces strengthened energy efficiency regulations for the private rented sector and implement the Future Homes Standard for better quality new builds.
  • Accelerates rollout of electric heat pumps via the Clean Heat Market Mechanism and set out a plan for transitioning away from gas heating.
  • Continues to accelerate progress towards clean power by scaling up diverse and flexible technology, being ambitious on renewables and improving grid infrastructure and storage capacity.
  • Provides targeted and scale-up support for businesses and energy intensive industries to decarbonise.
  • Pursues electricity market reform urgently.

This report provides a timely analysis of the immediate effects of the price crisis, and the responses by government, the regulator and the industry. Crucially, it also seeks to learn lessons from the past two years, and to recommend actions that would reduce the UK’s vulnerability in future.” – Jim Watson, Director, UCL Institute of Sustainable Resources

Future proofing

Additionally, the ECC made recommendations to ensure better handling of a future crisis:

  • Improve targeting of support for vulnerable households, including data sharing and matching, and urgently preparing for the need for support rising this winter.
  • Introduce separate, targeted and scaled-up support for energy intensive industries and other businesses.
  • Review regulation to protect consumers from supplier failure.
  • Develop an overarching plan to reduce the risk of future crises, including regular stress testing of the UK’s resilience to price shocks and disruption.

The long-term solution is to shift away from fossil fuels. To achieve this, the report emphasises the need to improve energy efficiency and invest more rapidly in non-fossil sources of energy. However, it is also important to manage the decline of fossil fuels in an equitable way – especially gas. A comprehensive plan is required to achieve this that covers all stages of the gas supply chain: from offshore production in the North Sea to the use of appliances in homes” – Jim Watson, Director, UCL Institute of Sustainable Resources

Source: ULC Institute

 

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