Heat markets

The use of heat is the single largest contributor to UK carbon emissions, but heat markets are commonly considered to be one of the most difficult sectors to decarbonise. 

The low-carbon heat market is nascent, with a range of technologies and fuel sources competing to gain traction in different, localised markets. These include electrification through heat pumps, hydrogen in the existing gas network, biofuels, and heat networks.

We look at each of these innovative options for future heat, to provide insight on how they may develop in the future decarbonised economy in the UK.

Our services in heat markets

  • Domestic Renewable Heat Incentive Report – This report is an ongoing series of quarterly updates including relevant insight into the RHI scheme developments on; guidance, policy updates, scheme costs, tariff rates, and deployment statistics.
  • Non Domestic Renewable Heat Incentive Report – This report is an ongoing series of quarterly updates including relevant insight into the RHI scheme developments on; guidance, policy updates, technology costs, tariff rates, and deployment statistics.

Recent insight

As the electricity sector decarbonises, policy makers and advisers are increasingly focusing on decarbonisation of the heat sector. This has been embodied by multiple consultations on the topic, such as Net Zero – The UK’s contribution to stopping global warming from the Committee on Climate Change, and a promise to amend the Climate Change Act 2008 to achieve net zero by 2050. 

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On 6 August, BEIS published the 2019 Q2 Heat Networks Project Pipeline. The summary brings together a range of investment opportunities across projects supported through their development stages by the Heat Networks Delivery Unit (HNDU) and projects seeking capital support from the Heat Networks Investment Project (HNIP). 

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The latest data from the Non-domestic Renewable Heat Incentive (RHI), published by BEIS, highlights a continuing decline in the number of installations made under the scheme, but alongside this a continued rise in average capacity. 

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Latest news

 

 

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