ECIU analysis shows how insulation could cut gas imports

Getting many of the UK’s homes up to a basic level of insulation this decade could save up to 384TWh (terawatt hours) of gas over the period 2030 to 2035, compared to 118TWh of gas that could be produced by new ‘already approved’ North Sea fields over the same period, according to new analysis from the Energy and Climate Intelligence Unit.

384TWh is equivalent to a fifth (20%) of current total annual household gas demand or 11% of gas imports.

In addition, the analysis finds that reaching the target for all homes of Energy Performance Certificate (EPC) band C could lower the total amount paid for gas in the average home (currently EPC band D) by £1,944 by the start of 2030 in a central scenario. This rises to £2,469 saved in total by the start of 2030 if gas prices stay high for the rest of the decade as some industry experts are predicting [5]. For homes with a poorer EPC rating of band F, total savings could reach £4,486 in a central scenario and £5,697 if gas prices stay high.

Jess Ralston, Senior Analyst at ECIU, said:

Earlier this year the Treasury, under the now Prime Minister’s direction, blocked an increase in funding for insulating homes. Making more efficient use and wasting less energy in the past has driven a quarter of the UK’s growth. It also leaves homes less vulnerable to international gas price shocks, something that new North Sea gas fields won’t.

With the autumn statement looming, there are concerns that other efficiency funds could be raided leaving hospitals and schools facing higher electricity bills and the UK as a whole no better off. It remains to be seen if the government will kick the can down the road, rob Peter to pay Paul or genuinely increase investment.

In 2022, it is expected that just 150,000 homes will benefit from energy efficiency installations. At that rate, just 1.2million homes in the UK will have had insulation installed by the end of 2030, far below what is needed to reach the government’s target of bringing the vast majority of homes up to EPC C by 2035.