UK Government spends £860m on air-source heat pump grants!

The UK gov. is spending £860m on decarbonisation projects. Most of this money is being spent on replacing perfectly good gas boilers in public buildings with air-source heat pumps.

207 public sector organisations have been awarded grants for 245 heat decarbonisation and energy efficiency projects.

So instead of burning natural gas, we will be using electricity. Approximately 40-60% of electricity in Winter comes from fossil fuels (wood from Drax power station and gas power stations).

The reduction in CO2 emissions is minimal (202 kg/MWh gas vs. 193 kg/MWh UK grid). Electricity is approx. x4 more expensive than gas but air-source heat pumps are approx x4 more efficient, so their is little difference in running costs. Most of the building are schools and offices which are only open during office hours. Air source heat pumps must be on 24x7. Also, these buildings are often badly insulated - typically their gas heating goes on in the early winter mornings to warm them up and then it is turned down during daylight hours and switched off at night. Some heat pumps are being used 24x7 in hospitals which make more sense than using them in schools and offices.

So rather than using £860m on new buildings or incentives to encourage business, etc., the UK gov. are giving away grants to replace perfectly good gas boilers with 24x7 air source heat pumps which will actually save little CO2 emissions and cost about the same to run. This project alone is costing the tax payer £860m for little gain (and probably no overall cost saving). Electricity prices are bound to go up as demand increases (offshore wind, onshore wind, biofuel woodchips and solar are actually more expensive than gas).

Most of the boiler replacements are not necessary and don't make economic sense. The air-source heat pump industry in the UK is still in the early, expensive stage. In five years time the systems will be a lot cheaper to buy. We don't need to spend £1billion on these projects, especially when we already have an over-generous grant for private house owners which almost pays for their entire system and gives them a free boiler!

Link to Phase 4 Decarbonisation Projects

Personally, I am all in favour of green energy, but we should be building new projects using green energy which can be designed and planned for maximum savings. If it makes economic sense to replace existing heating then why aren't all private sector offices doing it?

Personally, I would rather the money was spent on infrastructure improvements like flood defences, roads, ditch and drainage clearing, etc.

Useful link - Contract wins.