The Welsh Government published its consultation on the Heat Strategy for Wales on 16 August 2023, announced in a written statement by Julie James MS, Minister for Climate Change1. The statement said the publication fulfilled a commitment in Net Zero Wales: Carbon Budget 2 to scope out the challenges and opportunities around low carbon heat and to publish a heat strategy for Wales in 20231. The consultation closes on 8 November 2023, with responses accepted by email, post or online form2.
The statement said the production and management of heat across buildings and industry accounts for over 50% of total energy demand in Wales, three-quarters of which comes from the combustion of fossil fuels1. It described Welsh homes as among the oldest and least energy efficient in Europe, and noted that a significant number of properties are off the gas grid1. Emissions from industry account for a greater percentage of Welsh emissions than the UK average, with a significant contribution from burning fossil fuels for high temperature heat1.
On technology, the statement said the evidence review supports electrification as the main technical solution for space heating, with a likely role for heat networks as centralised sources of heat, and a targeted role for hydrogen in decarbonising industry1. The consultation document states that heat pumps will be the championed solution for most building heat, and that hydrogen's role will be in defined zones for high-temperature industry and in wider net zero solutions prioritised by usefulness, described as "the hydrogen ladder"2. The strategy's policies are broken down into 17 objectives within six groups2.
The statement listed challenges identified by stakeholders: a lack of clear information and advice; the need to upskill the workforce; a need to increase the supply chain of affordable new low carbon heating solutions; a need for targeted financial support; and a need for more investment in energy infrastructure1. It said continuing with the current level of action will not be sufficient, and that standards and regulation must include a firm date for the phase out of fossil fuel boilers in domestic and commercial buildings1.
"Our homes are among the oldest and least energy efficient in Europe"
The consultation asks whether permitted development rights related to heat pumps are a barrier to rollout, whether local area energy plans should deliver place-based heat decarbonisation, and whether new housing developments and large commercial buildings should be required to connect to new district heat networks2. It also asks whether the UK Government should move environmental levies from electricity bills to general taxation2. The strategy's costs are drawn from Climate Change Committee analysis and it is based on the Committee's Balance Pathway2. The statement said detailed costings, including an assessment of distributional impacts, will be developed in the next phase of work on action plans1.
| Item | Detail |
|---|---|
| Published | 16 August 20231 |
| Consultation closes | 8 November 20232 |
| Share of Welsh energy demand from heat | Over 50%1 |
| Share of that from fossil fuel combustion | Three-quarters1 |
| Objectives in strategy | 17, within six groups2 |
Why it matters for households
Heat is the largest single use of energy in Wales, and most of it currently comes from burning fossil fuels1, which ties household heating to fuel prices set in global markets. The statement said supporting a transition away from fossil fuels for heating will support greater energy resilience, while acknowledging that costs will need to be borne by businesses and householders and that there are important considerations about who should pay and how costs are fairly borne1. For a household, the direction set out points to electricity as the main route for space heating, with heat pumps championed for most buildings1, and hydrogen framed as a solution for industry rather than homes1. The consultation also raises the upfront cost of heat pumps and the role of long-term finance packages, smart meters and variable tariffs2. The strategy notes that the Warm Homes Programme has been offering new gas boilers, where appropriate, to those eligible, and asks whether future energy efficiency investment should simultaneously support heat decarbonisation2. The statement said implementing energy efficiency measures and decarbonising heat would bring wider benefits including affordable warmth, resilient businesses, green jobs and growth, and greater energy security1.
What happens next
The consultation closes on 8 November 20232. The statement said the Welsh Government is committed to developing detailed costings, including an assessment of distributional impacts, as part of the next phase of work to develop detailed action plans to implement the strategy1. No date has been reported for publication of those action plans or for a decision on a phase-out date for fossil fuel boilers.