A vision for the £33bn UK heating market Gas 69% Elec 14% Oil 10% 2 million homes on oil >4 m homes in social housing.1.6 m “dense” housing suitable for district heating Objectives for 2020… Vision for 2050 Drive for energy efficiency UK Gov. target: 12% of heat from renewable sources Commercial and district heating (biomass, heat pumps) Domestic focus on off-grid (oil, LPG, electric) replacement with heat pumps, biomass and solar thermal The start of demand management Drive for energy efficiency 90%+ of heat from renewable sources Biomass mainly in commercial & industrial 50-80% domestic properties heated by heat pumps from low carbon grid Extensive heat networks for dense housing in cities Sophisticated demand management minimises upgrade to grid and peak generation capacity