The Welsh Government published its draft Heat Strategy for Wales for consultation in August 2023, setting out a route to net zero heat across all sectors by 20501. The document states that heat accounts for approximately 50% of total energy use in Wales, three-quarters of which comes from burning fossil fuels1.
The strategy notes that Wales has a legislated target to reach net zero greenhouse gas emissions by 2050, with interim targets of a 63% reduction by 2030 and 89% by 2040, and that the 2020 target of a 23% reduction was met1. It records that total renewable heat capacity in Wales is 686MW, providing 2.3TWh of mostly biomass heat, equal to 4% of the roughly 53.4TWh of heat energy used per year in Wales1. The ministerial introduction states that Wales' homes are among the oldest and least energy efficient in Europe, and that the scale of change required is greater than elsewhere in the UK1.
"Our vision is for is that clean, affordable heat will be available to all."
The draft sets out a series of dated commitments and expectations. It states that the UK Low-Carbon Heat Scheme is expected to launch in 2024, and that the Welsh Government is supporting the development of Local Area Energy Plans across the whole of Wales by 20241. It records that £20m has been made available to support local authorities in 2023/24, and that the Net Zero Skills Action Plan was released in 2023 with seven key areas of action including low carbon heat1. On minimum standards, it states that as of 1 April 2023 it is against the law to let or rent out a property without a minimum EPC rating of E, with the requirement rising to C in 2028 and B in 20311. The strategy also notes that the outcomes from neighbourhood and village trials will feed into the government's decision on hydrogen heating in 20261.
| Measure | Date given in the draft strategy |
|---|---|
| Minimum EPC rating E for letting or renting | In force from 1 April 2023 |
| UK Low-Carbon Heat Scheme expected launch | 2024 |
| Local Area Energy Plans across Wales | By 2024 |
| Minimum EPC rating C | 2028 |
| Minimum EPC rating B | 2031 |
| Government decision on hydrogen heating | 2026 |
A guest blog published by Community Housing Cymru in October 2023 describes the Welsh Government as having become "much more aligned" with the view that heat pumps are the best option for replacing gas boilers, citing the draft heat strategy2. Nesta, which wrote the blog, said it commissioned a survey of more than 2,500 domestic heat pump owners and more than 1,000 domestic gas boiler owners in England, Scotland and Wales, and that 81% of heat pump owners surveyed were as satisfied or more satisfied than with their previous heating system2. Nesta also stated that it does not believe hydrogen is the best technology for homes, describing it as inefficient and expensive2.
Why it matters for households
The strategy confirms that minimum energy performance standards for rented homes in Wales are already in force at EPC E, and sets out planned rises to C in 2028 and B in 20311. For households in fuel poverty in Wales, the draft links the decarbonisation of heat to lower energy bills and warmer homes, and notes that the most recent energy crisis is estimated to have put 45% of Welsh households at risk of fuel poverty1. The document also acknowledges that many owner-occupiers are on low to middle incomes and may not have the resources for the investment needed to decarbonise their heating1. For a home's energy independence, the strategy points to a shift away from fossil fuel heating, changes to electricity pricing, and the transformation of energy networks, but it does not set out household-level costs or grant amounts beyond the £20m for local authorities in 2023/241. The Welsh Housing Quality Standard and EPC requirements for social housing in Wales sit alongside these proposals.
What happens next
The draft was issued for consultation1. The strategy states that the UK Low-Carbon Heat Scheme is expected to launch in 2024, that Local Area Energy Plans are being supported across Wales by 2024, and that the government's decision on hydrogen heating will follow the neighbourhood and village trials in 20261. No consultation closing date is given in the document text.
Sources2 cited
- Heat Strategy for Wales, gov.wales
- Guest blog: why Nesta sees heat pumps as… | Community Housing Cymru, chcymru.org.uk