In response to the recent announcement about the Fifth Allocation Round of the Contracts for Difference (CfD) scheme, there is a call for expansion.
Geothermal company Star Energy is leading this call – their primary request is to include heating decarbonisation projects within the scope of the CfD scheme.
This request is based on the fact that heating constitutes a significant portion, approximately 40%, of the nation’s energy consumption and is responsible for nearly one-third of its greenhouse gas emissions.
The firm suggests by expanding the CfD scheme to include renewable heating initiatives, the UK can make substantial progress toward the emissions reduction target set for 2050.
The CfD scheme, which has been effective in promoting low carbon electricity generation, is seen as a suitable tool for addressing heating decarbonisation.
Chris Hopkinson, the Chief Executive Officer of Star Energy, has emphasised that an exclusive focus on electricity decarbonization, while commendable, may unintentionally hinder progress in the equally crucial realm of heating decarbonisation.
Mr Hopkinson said: “By only focussing CfDs on decarbonising electricity, the UK risks lagging behind on the greater challenge of decarbonising heating.
“A scheme which also covers heating will help to unlock new renewable technologies, including geothermal. There’s a homegrown, local solution to decarbonising heat sitting right beneath our feet, but our industry needs government support to develop it.”
