How can we decarbonise the electricity grid to achieve net zero housing in the UK?
We’ve been exploring the 4 key steps to meeting net zero targets for the UK housing sector:
- Efficient devices (3.8% of UK emissions)
- Efficient homes (24.6% of UK emissions)
- Decarbonisation of electricity (16% of UK emissions)
- Decarbonisation of heating (55% of UK emissions)
💡 For a full overview of all 4 steps towards Net Zero housing in the UK, go to propertyzero.io
In this article we focus on the decarbonisation of electricity. What is actually needed to decarbonise the electricity grid in the UK? How do we get there? What role does the financial sector have?
How does the decarbonisation of electricity bring us closer to Net Zero?
This refers to the continued growth of the renewable energy sector in the UK, the most popular sources of which include wind, solar, and water. It also includes the development of decentralised energy sources, referring to energy that is generated off the main grid. This includes decentralised energy from solar panels and wind turbines among others.
A significant advantage of this step is the fact that electricity is currently the most decarbonised energy sector due to its unique ability to integrate renewable energy sources. This means that expanding the decarbonised electricity infrastructure throughout the UK will be relatively easy compared with the other steps. Moreover, it is the one that, more than any other, allows for a real increase in energy efficiency.
Currently, 20% of housing emissions come from electricity consumption. By using renewables, the average house could save 13.4 million tonnes of carbon a year (for the whole sector), at a cost per tonne of £10,858. Therefore, it’s clear that a continued expansion of renewable energy production is a critically important step towards Net Zero and carbon neutrality for the housing sector.
Similar to the UK government’s Net Zero plans, Kamma also recommends focusing on upgrading insulation (fabric first improvements) to ensure that the heat and electricity produced will be better retained or utilised. Additionally, we also recommend upgrading devices (low energy lighting), as although it is known to reduce emissions, it is not outlined in official government strategies. More on that here.
What progress has been made so far on the decarbonisation of the electricity grid in the UK?
- In 2020, renewables including wind, solar and biomass, accounted for 43% of the UK’s domestic power generated, and nuclear accounted for about 16%, down from 21% in 2016.
- The UK is already leading the world on wind power, which has enabled the country to deliver 59% of electricity from low carbon sources.
- Generating enough renewable energy to support the national grid, or decentralising energy through rooftop solar could save 13.4mt per year.
Renewable energy targets for the UK
To achieve Net Zero by 2050, a substantial increase in renewable and decarbonised electricity is required, especially to meet heightened demand from new sources such as electric vehicles.
The government has subsequently set out specific intermediary targets within this step.
UK Prime Minister Boris Johnson has said that by 2035, 100% of the country’s electricity could come from renewables, but we are yet to see a concrete plan for how this will materialise. The UK government has also set a target to produce 40 GW of offshore wind capacity by 2030, an increase from 11 GW in 2020.
to 2020, BEIS Statistical Release 2021
There are several factors inhibiting the achievability of these targets and the overall growth of decarbonised electricity, however.
Cost and availability of renewables in 2022
From the 1990s to now, the cost of renewables has continued to drop. UK offshore wind costs have drastically declined in the past few years, which has enabled a wider uptake of renewable energy and allowed the government to reach more of its renewable energy targets. In 2019, Yorkshire and the Humbler generated the highest amount of electricity from renewable sources in England, measured at around 23 terawatt-hours.
In 2021, offshore and onshore wind was the biggest source of renewable energy in the UK. It surpassed other renewable sources by 13.8% of total electricity generated, also beating the combined generation of coal, oil and others by 6.5%.
However, possible obstacles obscuring these renewable targets come in the form of availability. The supply of renewable energy needs to increase significantly to support the targeted demand. For example, in 2021, gas and power prices increased as the National Grid was restricted to using them due to shortages of global supply, low wind supply and the closure of UK coal plants.
How to ensure that the decarbonisation of electricity contributes to Net Zero
Kamma’s third step, decarbonising electricity, will be tackled on the supply side, through an expansion of the UK’s world-leading wind-power capacity, the growth of tidal power and a return to nuclear power. The UK government has previously announced the aim of quadrupling wind power in order to generate enough power for every home in the country.
The IEA, however, specifically talks about the decentralisation of energy (i.e., switching the primary supply of electricity from central power stations to homes and properties) as a key step on the path to Net Zero, whilst many local authorities are driving a rapid roll-out of solar to social housing.
If homes can generate their own electricity requirements in a zero-carbon way, Kamma’s view is that they should, leaving the vast increases in renewable energy to service the large needs of industry. The lack of incentives or support for home solar, for example, suggests this is not the UK government’s view.
One of the reasons behind the creation of Kamma’s 4-step pathway to Property Zero was to assess government policy and the efficacy of their supposed strategy. On the path to Net Zero by 2050, the decarbonisation of electricity can play a pivotal role. Continuing the growth and expansion of the UK’s world-leading renewable energy infrastructure could, theoretically, ensure 100% of the country’s electricity is produced by renewable sources by 2035.
Yet what brings us hope is that the electricity sector has already gone through substantial decarbonisation efforts and there is a clear plan to decarbonise the sector further. The fact that renewables accounted for 43% of the UK’s domestic power generated in 2020 shows that we can dramatically decarbonise our electricity supply in a way that reduces costs and supports the economy. Therefore, Kamma believes that the decarbonisation of electricity is the model that all other sources should aim to follow.
With our extensive report, we also hoped to create an easily consumed and understandable narrative to engage and mobilise the country toward Net Zero. Collectively, we can all be a part of this journey, and by raising the level of awareness and debate, we ensure a swifter and more efficient path to carbon neutrality for UK homes.
Contact us now to find out more about how Kamma can support your business’ drive to Property Zero.
