New analysis from LCP Delta has revealed that the UK is ahead of other European markets in household electrification by 2030.
The findings were outlined in the report The Road Ahead: the European Energy Transition Report, with a forecast of a strong 13% compound annual growth rate (CAGR) in household electrification through to 2030.
But the study also discovered that the UK “may miss key milestones” without “stronger strategic direction”, especially on low carbon heating.
It said that an absence of a cohesive Clean Home Energy Strategy, such as that proposed in Beyond Clean Power 2030: The urgent need for a Clean Home Energy Strategy by 2035 report, indicates the UK will miss its 600,000 annual heat pump installations per year by 2028 target by over a third – reaching just 400,000 installs annually, and not until 2035.
More positively, it said that the UK had a “clear head start” on demand-side response. According to LCP Delta’s latest survey of over 7,000 households across Europe, 47% of UK consumers are aware of DSR, compared to an average of less than 40% in other markets.
In addition, 52% of UK homeowners expressed interest in participating in future demand response events – a clear sign of rising consumer readiness, it said. But it said that educational efforts and “breaking down key barriers to engagement” were also key to success.
LCP Delta also identified several other challenges as barriers to take up: low perceived financial rewards, lack of trust, and concerns around data privacy and transparency.
Many consumers also feel that DSR is not yet “mainstream,” reinforcing the need for clear, consistent communication and user-friendly propositions, it said.
Jennifer Arran, Head of Residential Energy at LCP Delta, said:
“The next phase of the green transition will involve the unprecedented electrification of homes. This will only happen if customers can see the tangible rewards from their participation. Presenting flexibility as an attractive option that leads to lower bills is key.
“From our survey, we know that 95% of European participants in demand flexibility schemes said they’d take part again, which is strong evidence that once people are in, they tend to stay engaged. Clear communication and customer engagement is therefore the most important step to unlocking green growth that will reward participants.”
Juliette Sanders, Chief Communications Officer at Energy UK, said:
“Electrifying our economy will not only improve our energy resilience, it’s the most efficient way to power lives and businesses.
“As electricity demand increases, on top of driving efficiencies and reducing the cost of the transition, demand flexibility provides a way to reward people who use electric vehicles and heat pumps, helping households offset initial costs.
“We know the majority of the public support taking action on climate change. Great Britain is unlocking markets at pace as part of its ambition to increase to deliver a five-fold increase in consumer-led flexibility by 2030, and it’s great to see the high levels of consumer engagement here, demonstrating people are keen to be part of the solution.”
Image courtesy of LCP Delta
