The deployment of decentralised energy systems as part of the housing growth programme in the UK

The housing growth programme could offer an opportunity for accelerating the deployment of decentralised renewable energy systems (DRES) in the UK. The Government hopes to leverage private sector investment into DRES as part of new housing projects. The aim of this paper is to assess whether current regulatory and funding frameworks are sufficient to achieve this. The question is explored by drawing on the experience of developers, local authorities, energy utilities and service companies operating in the largest housing growth region in the UK–Thames Gateway. Their experience suggests that the current low intervention approach will be insufficient to generate the shift required in both industries. In order to be more successful economic and regulatory instruments should focus on producers (house-builders and energy providers) rather than consumers (households). Tighter regulation is needed to ensure that producers have a responsibility to install DRES as part of new developments, to enable connection to the grid, to ensure a sustained financial return from investment and revenue is spent on the expansion of new renewable energy infrastructure. This regulatory framework must be under-pinned by substantial funds focused on producers. Greater intervention is needed if DRES is to be included in new housing development.