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Research
PROGRESS ON NET ZERO
LAs missing ambitious targets
All those who responded to Utility Week's survey represented authorities that have a net zero target. Almost half (46%) have set a target of reaching net zero between 2030 and 2034; and nearly a third (30%) have set a target of before 2030. Asked if their local authority was on course to meet the dates that had been sent, almost two-thirds (65%) said they were not on course.
The survey did not differentiate between whether the net zero targets were for local authorities’ own operations or the entire region in which they operate. It was not uncommon among those interviewed to have pledged to be net zero for their own operations, and have a decarbonisation target more in line with government’s own 2050 ambitions for their borough. That said, some had set 2030 targets for both, which they admitted were often unrealistic, particularly with no extra funding and so many relevant factors beyond their control.
Where local authorities are focusing their efforts
Decarbonisation of public buildings was by far the biggest focus for local authorities. This is not surprising. Their own estate and operations is where they have most direct control and many have been able to make quick wins, replacing lighting for example with LEDs. Government has also provided funding through various streams, notably its Public Sector Decarbonisation Scheme (PSDS). This scheme has the aim of reducing emissions from public sector buildings by 75% by 2037, compared to a 2017 baseline, as set out in the 2021 Net Zero and Heat and Buildings strategies. The scheme has entered its third phase with a pot of £1.425 billion to spend between 2022 and 2026. Phase 1 allocated £1 billion and Phase 2, £75 million. The PSDS is geared towards energy efficiency measures and the decarbonisation of heat, which is reflected in the survey findings. More than nine in 10 (92%) said that their local authority had a plan to improve energy efficiency in public buildings. Nearly eight out of 10 (78%) said the authority had a plan to decarbonise heat in public buildings and seven out of 10 (73%) said their authority has committed to electrification of heat in buildings in their direct control.
Improving the energy efficiency in social housing and decarbonising domestic heat is a more difficult proposition. Fewer respondents gave positive answers when asked if their authority has a plan to improve energy efficiency in directly owned or controlled social housing stock (43%) with slightly more (49%) saying they had plans to decarbonise heat in this stock. Government has allocated £4.8 billion to the Social Housing Decarbonisation Fund, launched in August 2021. This is being released in phases over a 10-year period. Many housing organisations have called on government to bring this forward to provide confidence for firms to skill up.
Meanwhile, 57% say their authority is involved with or intends to consider the utilisation of heat networks. More than half (54%) have committed to a whole systems solution to decarbonising heat, where it is in their direct control.
Nearly a third (30%) say they are waiting for the government to give further direction on the potential use of hydrogen for low carbon heat before committing to a solution.
Many of those interviewed say that their approach has been driven by what their return on investment will be, with the installation of solar on rooftops across their estate proving popular. Some, like West Sussex, have successfully invested in solar farms, which in their case has paid back investment within a just few years.
Melania Tarquino, strategic energy lead at Surrey County Council, remarks: “We are having to install solar everywhere we can because it's the only measure that has a real payback at the moment.”
Others point to a strong expectation from council members that decarbonisation measures will have reasonable pay back periods, yet whole-life retrofits can take 30-plus years to payback. Improving the energy efficiency in social housing and decarbonising domestic heat is a more difficult proposition. Fewer respondents gave positive answers when asked if their authority has a plan to improve energy efficiency in directly owned or controlled social housing stock (43%) with slightly more (49%) saying they had plans to decarbonise heat in this stock. Government has allocated £4.8 billion to the Social Housing Decarbonisation Fund, launched in August 2021. This is being released in phases over a 10-year period. Many housing organisations have called on government to bring this forward to provide confidence for firms to skill up.
Meanwhile, 57% say their authority is involved with or intends to consider the utilisation of heat networks. More than half (54%) have committed to a whole systems solution to decarbonising heat, where it is in their direct control.
Nearly a third (30%) say they are waiting for the government to give further direction on the potential use of hydrogen for low carbon heat before committing to a solution.
Heat networks
Heat networks are seen as having the potential to decarbonise heat at scale, in a way that will be more affordable in urban conurbations than decarbonising individual buildings.
New measures in the Energy Act will bolster the development of heat network zoning in England through regulations. This includes powers to develop a nationwide methodology for identifying and designating areas as heat network zones; and also powers establishing a new zoning coordinator role, which is expected to be fulfilled by local government, with responsibility for designating areas as heat network zones and enforcing requirements within them.
It is, however, new territory for local authorities. Though they may have installed heat networks on individual buildings, carrying this out across whole areas is relatively untested in the UK. Mark Atherton, director of environment from Greater Manchester Council, says the decarbonisation strategy across his region includes 8,000 newly connected homes on to heat networks, and about 11,600 heat pumps in five years from now.
Local authorities who are considering options to invest in such networks will need to consider their attitude to risk, and the delivery vehicles they might construct to make it happen. Says Atherton: “We’re still working our way through those issues.”
Tarquino at Surrey agrees, pointing out that if councils were to start developing heat networks it would take them into brand new territory including selling energy to customers. “What we think we can do for now is to start analysing where there are heat demand hot spots and start identifying areas for potential heat networks, and then come up with a strategy on how those will be delivered, and by whom.” Read more about Surrey's approach to decarbonisation here.
LAs and transport
The Local Government Association (LGA) has established that transport is now the biggest emitter of carbon of any sector in the UK. If we are going to reach our target of net zero emissions by 2050 or sooner, there will need to be a fundamental transformation in the ways we move goods and people. Local authorities can play their part in a number of ways – including encouraging the take-up of EVs by planning and offering incentives.
Some local authorities have provided EVs with free or subsidised parking, or subsidised electricity during parking, and other places have allowed EVs to access bus lanes. However, the LGA has warned: “There are risks that privileging EVs in this way will damage attempts to shift more trips to active travel [walking, wheeling and cycling] and public transport – the necessary first step in councils’ decarbonisation plans.”
But decarbonising through discouraging motorised vehicle journeys will not be easy and is politically sensitive, as 2023’s by-election in Uxbridge and South Ruislip has shown.
Returning to the results of the survey, when asked to what extent their public charging infrastructure was ready for the mass take-up of EVs, the average score was 2.86 out of five. Just over a fifth of respondents (22%) scored four or five (where five is fully ready).
There appeared to be more progress on another strand of decarbonising transport – decarbonising their own fleets, where the average score was 3.41 and almost a quarter (24%) said the plan to decarbonise fleets was already being implemented.
A big majority – 86% – said there is a clear role for hydrogen in transport – particularly around heavy goods vehicles like waste trucks. Aberdeen City has done a great deal to build a hydrogen economy over the past decade. The city currently has 85 hydrogen vehicles – a mixture of fuel cell and dual fuel – including double-decker buses, bin lorries and road sweepers. The council has also acquired a fleet of hydrogen-powered Toyota Mirais which are available as part of the local car club. The city also has two publicly available refuelling stations providing 350 bar and 700 bar fuelling. And to strengthen its efforts, the council now has a joint venture with BP to produce green hydrogen from solar farms to power further expansion of the hydrogen fleets.
While several local authorities interviewed for this report are looking into the feasibility of using hydrogen vehicles, they said this was at an early stage. One pointed to the reluctance of their bus company partner to invest in hydrogen vehicles as the key blocker to any detailed discussion about the use of the technology for transport.
As well as hydrogen, other decarbonisation solutions are emerging. SSEN has been involved with the Energy Superhub Oxford project, which saw a private wire fitted to power 42 EV chargers at the Redbridge Park & Ride last year. These include 20 7-22kW bays and a further 22 ultra-rapid chargers. The general consensus of local authorities joining the roundtable discussion convened by Utility Week on transport decarbonisation was that while rapid chargers currently play only a limited role in the wider EV charging landscape, their role is likely to become significantly more important.
Several councils referenced projects to utilise hydrogen, principally for transport or industrial use. One talked about their authority’s desire to link up large renewable generation projects with hydrogen production facilities. Hydrogen-fuelled vehicles were potentially being seen as replacements for diesel waste collection vehicles.
SGN’s hydrogen solutions lead Fergus Tickell says: “There’s clearly a lot of opportunities in the long term for hydrogen to play an important role in the decarbonisation of transport. That in turn helps to introduce hydrogen as a decarbonisation vector to the wider public. The progress that local authorities like Aberdeen have made is a living example of the core role hydrogen can have and the benefits it can bring to local communities. What you can see in Aberdeen is a real local authority led project but one which has only been possible because of that very flexible continuous collaboration - with the bus company and other stakeholders.”
Demand-side response versus storage
Transitioning to a zero-carbon grid will require greater flexibility in the system to accommodate intermittent energy sources which can be the form of demand-side response or storage.
Two-thirds of authorities are investigating the use of storage to create energy flexibility. A number of councils interviewed had investigated solar panels on roofs – and in some cases solar farms, which had battery storage as part of the solution.
There was less enthusiasm for investigating the use of demand-side response, with just over half (53%) saying they were doing so. Reasons cited included that relative to heavy industries councils were not heavy users of energy; it was hard to grasp the concept; and simply in a long to-do list, with limited capacity, it was just at the end of the queue.
“Lack of vision, desire and knowledge,”, “lack of capacity,” and ‘”we’re just not at that point yet” were comments made by survey respondents.
West Sussex, however, is breaking the mould and is planning its own virtual power plant.
Among the interviewees, there was little sense that demand-side response presented an interesting opportunity for them at the moment. However, some interviewees said that if energy companies were to bring it to their attention and get the ball rolling, it might be something they would consider.
Case study
Dorset aims high
“We’re looking at what the options might be in the longer term. For example, whether hydrogen might start being part of the natural gas mix. But that’s not something as a local authority we have any control over.”
Steven Ford, corporate director for climate and ecological sustainability, Dorset Council
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