go to top scroll for more

Incumbency and the transformation towards low carbon heating in the UK Implications for policy

This resource links to a document we hold in our system

Abstract:

This briefing paper summarises the key policy implications from the last of three working papers published by the Heat Incumbency Transitions Team. This research has investigated the role and behaviour of heat market incumbents in relation to the decarbonisation of heat.

Key messages

  • The required transformation of the UKs heat system will have major implications for people and organisations involved with the sector.
  • We define incumbents as people or organisations currently active in the UKs heat sector. Incumbents have the economic, social or technological capacity to influence the future of the heat system.
  • Incumbents in the UK heat market are diverse and the impacts of heat decarbonisation will vary between sectors. A risk and opportunity analysis of the UK heat sector has highlighted that different heat decarbonisations pathways (electrification vs. gas decarbonisation) pose different risks for different sectors.
  • Gas network owners and appliance manufacturers are the most active in their engagement with heat decarbonisation. This activity includes attempts to exert political power over policy and regulation as well as innovation activities. The upstream and supply sectors engage less with heat decarbonisation.
  • The lobbying and innovation activities constitute attempts to maintain a gas based system for heat in which the gas network is decarbonised, primarily using hydrogen. This approach is unproven and risky but the idea has rapidly gained traction in the policy debate.
  • Heat incumbents have also actively resisted change. These efforts include talking down other technologies and framing them as unworkable and developing coalitions of similar interests.
  • Because of the ability of incumbents to lobby and innovate, new entrants in the UKs heat sector who may possess the best ideas and technologies may struggle to compete with incumbents.
  • Based on our research, we have developed a number of policy recommendations for UK heat policy with implications for regulators and policy makers working on heat decarbonisation, as well as those involved in policy design process

Publication Year:

2018

Publisher:

UKERC

DOI:

(none)

Author(s):

Lowes, R. and Woodman, B.

Energy Category

Class Name:

Subclass Name:

Category Name:

Language:

English

File Type:

application/pdf

File Size:

1346058 B

Rights:

Open Access

Rights Overview:

This data may be freely used for any purpose

Further information:

N/A

Region:

United Kingdom

Publication Type:

Policy Briefing Paper

Theme(s):

Energy Demand (Demand Reduction)

Related Publications(s):

A Bridge to a Low-Carbon Future? Modelling the Long-Term Global Potential of Natural Gas

A New Approach to Assessing UK Gas Security

A Review and Synthesis of the Outcomes from Low Carbon Networks Fund Projects

A transformation to sustainable heating in the UK: risks and opportunities for UK heat sector businesses

An investigation into future energy system risks: An industry perspective

BEIS call for evidence : The future for small scale low-carbon generation - Response from the UK Energy Research Centre (UKERC)

Best practice in heat decarbonisation policy: A review of the international experience of policies to promote the uptake of low-carbon heat supply - Project Scoping note

Breaking the Deadlock in Climate Change Communication. 12 March 2014, Church House Conference Centre, Meeting Report

Bridging the gap between energy and the environment: A synthesis of research conducted within the UKERC Energy & Environment theme.

Building our Industrial Strategy - Response to the Green Paper

Business, Energy and Industrial Strategy Committee carbon capture, usage and storage (CCUS) inquiry : Submission on behalf of UCL Institute for Sustainable Resources (ISR) and the UK Energy Research Centre (UKERC)

CCS: New enthusiasm, old uncertainty, and the need for a Delivery Body - Response to recent policy advice on Carbon Capture Use and Storage including the CCUS Cost Challenge Task Force and the Parliamentary Advisory Group on CCS

Challenges for the decarbonisation of heat: local gas demand vs electricity supply Winter 2017/2018

Consumer attitudes to changes in electricity supply voltage

Cost of Energy Review: Insights from UKERC Research

Cost of Energy Review: call for evidence - Response by the UK Energy Research Centre (UKERC)

Deconstructing the European Energy Union: Governance and 2030 Goals

Defining Incumbency: Considering the UK Heat Sector

Developing networks for the low carbon energy future

Driving innovation through continuity in UK energy policy : Four simple steps to maintain investor confidence, boost innovation and reduce costs in the UK power sector

EU Energy Policy and the Third Package

Energy Efficiency Evaluation: the evidence for real energy savings from energy efficiency programmes in the household sector

Energy Strategy Under Uncertainties: An Integrated Systematic Analysis of Uncertainties in UK Energy Transition Pathways

Energy pathways and valuing natural capital - Scoping note - January 2015, version 1

Energy systems research in a world in transition: challenges for policy and research

Fairness in Retail Energy Markets? Evidence from the UK

Funding a Low Carbon Energy System: a fairer approach?

Future UK Gas Security: A Position Paper

Future UK Gas Security: Midstream Infrastructure

Future UK Gas Security: The Future Role of Gas?

Future UK Gas Security: Upstream Security of Supply

Heat decarbonisation challenges: local gas vs electricity supply

How consistent and comparable are ecosystem services and energy system scenarios ?

Incumbency in the UK heat sector and implications for the transformation towards low-carbon heating

Justice in Energy Efficiency: a focus on fuel poor disabled people and families

Local Authority Engagement in UK Energy Systems:Highlights from Early Findings

Local Engagement in UK Energy Systems - a Pilot Study of Current Activities and Future Impact

Low carbon jobs: The evidence for net job creation from policy support for energy efficiency and renewable energy

Mapping energy participation: A systematic review of diverse practices of participation in UK energy transitions, 2010-2015

Marine Energy Technology Roadmap 2014

Materials availability for low-carbon technologies: An assessment of the evidence

Meeting report: heat networks and governance

Modelling natural gas resource uncertainties and regional gas markets: a review of current models and an introduction to a new field-level gas production and trade model

Ofgem Call for Evidence on the future of supply market arrangements - UK Energy Research Centre response

Ofgem RIIO-2 Consultation - Response from the UK Energy Research Centre (UKERC)

Ofgem consultation: Getting more out of our electricity networks by reforming access and forward-looking charging arrangements - UKERC response

Policy Pathways to Justice in Energy Efficiency

Public Attitudes to Nuclear Power and Climate Change in Britain Two Years after the Fukushima Accident - Synthesis Report

Public engagement with energy: broadening evidence, policy and practice

Response from the UK Energy Research Centre (UKERC) to the Energy and Climate Change Committee's Inquiry on Electricity Demand-side Measures

Response from the UK Energy Research Centre (UKERC) to the House of Lords Science and Technology Committee Inquiry into the resilience of electricity infrastructure

Review of Energy Policy 2017

Review of Energy Policy: 2018

Review of UK Energy Policy

Review of UK Energy System Demonstrators

Scenarios for the Development of Smart Grids in the UK - Synthesis Report

Scenarios for the Development of Smart Grids in the UK: Literature Review - Working Paper

Scottish Energy Strategy: The Future of Energy in Scotland - Scottish Government, Edinburgh - a Consultation response by the UK Energy Research Centre (UKERC)

Scottish Parliament Finance and Constitution Committee: Climate Change (Emissions Reduction Targets) Bill - Financial Memorandum -Response by the UK Energy Research Centre (UKERC)

Security of electricity supply in a lowcarbon Britain : A review of the Energy Research Partnerships report Managing Flexibility Whilst Decarbonising the GB Electricity System

Staying Connected Key Elements for UKEU27 Energy Cooperation After Brexit

Supporting fuel poor disabled people through energy efficiency measures - Practioner Guide

Supporting fuel poor families through energy efficiency measures - Practioner guide

Supporting large-scale transition to electric cars

Technologies for meeting Clean Growth emissions reduction targets

The EU referendum - Implications for UK Energy Policy

The Evolution of Community Energy in the UK

The Future Role of Thermal Energy Storage in the UK Energy System: An Assessment of the Technical Feasibility and Factors Influencing Adoption - Research Report

The Security of UK Energy Futures

The UK's Global Gas Challenge

The costs and impacts of intermittency 2016 update. A systematic review of the evidence on the costs and impacts of intermittent electricity generation technologies

The economic impacts of UK trade-enhancing industrial policies and their spillover effects on the energy system

The future role of natural gas in the UK

The governance of retail energy market services in the UK: A framework for the future

The impacts of non-energy policies on the energy system: a scoping paper

The politics of cross-border electricity market interconnection: the UK, Ireland and Greenlink

Transmission-distribution coordination and transition to more actively operated distribution: why it matters

UK Energy Strategy Under Uncertainties - Synthesis Report

UK Energy in a Global Context - Synthesis Report

UKERC Energy Research Landscape - Energy Efficiency - Residential & Commercial

UKERC Energy Research Landscape: Electricity Transmission and Distribution

UKERC Energy Strategy Under Uncertainties : Policy Making under Uncertainty in the Demand for Electric Vehicles (Working Paper)

UKERC Energy Strategy Under Uncertainties : Public Values for Energy Futures: Framing, Indeterminacy and Policy Making

UKERC Energy Strategy Under Uncertainties: Financing the Power Sector - Is the Money Available?

UKERC Energy Strategy Under Uncertainties: Identifying techniques for managing uncertainty in the energy sector

UKERC Energy Strategy Under Uncertainties: Interactions between the Energy System, Ecosystems Services and Natural Capital

UKERC Energy Strategy Under Uncertainties: Supply Side Change: Technology Assessment - Methods and Uncertainty

UKERC Energy Strategy Under Uncertainties: Uncertainties in Energy Demand in Residential Heating - Working Paper

UKERC Energy Strategy Under Uncertainties: Uncertainties in UK heat infrastructure development

UKERC Energy Supply Theme - Synthesis Report

UKERC Energy Systems Theme: Reflecting on Scenarios (Working Paper)

UKERC Energy strategy Under Uncertainties : Perceived Uncertainty in the Demand for Electric Vehicles: A qualitative assessment (Working Paper)

UKERC Flexible Research Fund Town Hall Meeting - meeting report

UKERC Interdisciplinary Review - Survey Results (Working Paper)

UKERC Interdisciplinary Review - Synthesis Report (Working Paper)

UKERC Interdisciplinary Review: Research Report

UKERC Research Fund - Round 3 Workshop Report

UKERC Response to the Ofgem/BEIS Call for Evidence - A Smart, Flexible Energy system

UKERC Response to the Ofgem/BEIS Call for Evidence - A Smart, Flexible Energy system - a system for the consumer

Uncertainties in Energy Demand in Residential Heating (Working Paper)

Unlocking Britains First Fuel: The potential for energy savings in UK housing.

Welsh Government : Locally owned renewable energy: A call for evidence - Response from the UK Energy Research Centre (UKERC)

Welsh Government Consultation: Achieving our low-carbon pathway to 2030

What We Know about Local Authority Engagement in UK Energy Systems - Ambitions, Activities, Business Structures & Ways Forward

What’s in a bill? How UK household electricity prices compare to other countries