Local Heat and Energy Efficiency Strategy (Lhees)
Argyll and Bute Council · 21 November 2024
Back to Argyll and Bute Council — 21 November 2024 and its agenda
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 21 NOVEMBER 2024 LOCAL HEAT AND ENERGY EFFICIENCY STRATEGY (LHEES) 1.0 EXECUTIVE SUMMARY 1.1 This report advises Members of the outcome of the Local Heat and Energy Efficiency Strategy (LHEES) public consultation exercise, which had a positive response both in terms of volume of response and general support for the strategy. 1.2 Following the public consultation exercise, the LHEES has been revised to take account of the relevant consultation feedback. This paper presents the revised Strategy and Delivery Plan to Members to be considered for adoption by the Council. (Appendix 1 and 2), along with an analysis of the consultation feedback in Appendix 3. RECOMMENDATIONS It is recommended that Council: a) Consider and approve the contents of this report; b) Adopt the LHEES Strategy and Delivery Plan included at Appendix 1 and 2.
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT AND ECONOMIC GROWTH 21 NOVEMBER 2024 LOCAL HEAT AND ENERGY EFFICIENCY STRATEGY (LHEES) 2.0 INTRODUCTION 2.1 The purpose of this report is to provide Members with the revised Argyll and Bute Local Heat and Energy Efficiency Strategy (LHEES) and Delivery Plan (Appendix 1 and 2) as well as to provide the outputs from the recent public consultation (Appendix 3). 3.0 RECOMMENDATIONS It is recommended that Council: a) Consider and approve the contents of this report; b) Adopt the LHEES Strategy and Delivery Plan included at Appendix 1 and 2. 4.0 DETAIL 4.1 Background The production of an LHEES became a statutory duty for local authorities in May 2022 through The Local Heat and Energy Efficiency Strategies (Scotland) Order 2022. This requires local authorities to publish their LHEES strategy and associated delivery plans. The Heat Network Regulations resulting from the Heat Networks (Scotland) Act 2021 are currently under development. The Council continues to work closely with the Scottish Government to understand the potential impact of these regulations on the LHEES.
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4.2 The LHEES addresses key priorities, including improving energy efficiency, reducing greenhouse gas emissions and tackling fuel poverty. Additionally, it aims to advocate for a “just transition” to low or no carbon heating for residential and non-residential buildings while examining the opportunities for community wealth building presented by the net-zero agenda. 4.3 The report to the Committee on the 26th of September outlines the process of developing the LHEES and its key components. (LOCAL HEAT AND ENERGY EFFICIENCY STRATEGY AND DELIVERY PLAN.pdf (argyll- bute.gov.uk)) 4.4 Stakeholder engagement The LHEES has been developed through an engagement process with key stakeholders. This included delivering two stakeholder events to determine priorities, and further sessions were held with Argyll and Bute Energy Efficiency Forum and Climate Change Board. Engagement with electricity network distributors, such as Scottish and Southern Energy Networks and Scottish Power Energy Networks, was also undertaken. 4.5 Public Consultation Exercise Argyll and Bute Council’s public consultation on the LHEES Strategy and Delivery Plan ran from the 26th of September to the 13th of October, 2024. The consultation received 112 responses from individuals as well as submissions on behalf of groups or organisations. However, the vast majority (97%) of submissions were from individuals. Appendix 3 outlines the consultation findings and references any changes made to the draft LHEES to reflect those findings. 4.6 A variety of approaches were used to ensure the reach of the consultation was maximised. This included: • Informing Registered Social Landlords, the Community Planning Partnership, the Climate Change Board and The Energy Efficiency Forum members • Direct messages to individuals and organisations who had previously contacted the Council regarding the LHEES. • Online promotion, including a dedicated webpage for the LHEES, was set up. This page was then promoted by the Council’s social media team • Emails were also sent out through the Keep in the Loop (KITL) framework. 4.7 The consultation outputs show support for the proposals outlined in the LHEES, with 69% of answers highlighting agreement or strong agreement with the LHEES aims (compared to 12% of answers highlighting disagreement or strong disagreement). The outputs for all questions are detailed in Appendix 3.
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The main themes that emerged from the consultation exercise were as follows: 4.8 The cost is too high to enable delivery Several respondents were sceptical that installing energy-efficiency measures or decarbonised heating systems would occur, particularly during a Cost-of- Living Crisis. This viewpoint is expressed nationally, and once the Heat and Buildings Bill is enacted in 2025, we will have a clearer understanding of how decarbonising buildings will be enforced and the financial support available. 4.9 The strategy is too focused on Heat Pumps. The Scottish Government stated in the Heat and Building Bill consultation document that “The clean heat systems that are most likely to be adopted are heat pumps, modern efficient storage heaters and heat networks”. Argyll and Bute’s LHEES assessed the viability of heat networks, and if the Scottish Government’s methodology is utilised, there are only five potential heat networks in Argyll and Bute. Therefore, most households within Argyll and Bute will not have access to a heat network. To attempt to mitigate this, the Council has taken on an additional piece of work to assess the viability of very small-scale heat networks. This work, which the Council is doing in partnership with Zero Waste Scotland, is mentioned in the LHEES but will be expanded upon when it is completed. Therefore, electrical heating systems will be the most viable decarbonised heating source for most households in Argyll and Bute. These electrical heating systems include all types of heat pumps and direct electrical heating, including storage heaters, electric boilers and electric radiators. However, direct electrical heating is more expensive to run and consequently, heat pumps are more favourable. Other alternatives are: 4.10 Hydrogen We are still awaiting a policy position from the UK and Scottish Governments regarding their policy on hydrogen. There is a pilot project on the east coast of Scotland, and some work is being done in Argyll and Bute to determine if the “town gas” network can support hydrogen. However, as the Scottish Government acknowledges in the Heat and Buildings Bill consultation, hydrogen will be used as the exception, not the rule. Additionally, the Scottish Government acknowledge that although Hydrogen is a potential consideration for the future, it is not at present. 4.11 Geothermal The LHEES strategy stated that one of the actions in the Delivery Plan would be to explore other potential heat sources. Following the consultation feedback, the strategy has been amended to explicitly state that this technology will be explored. Appendix 3 outlines the other actions the Council will take to address the comments made during the consultation process.
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4.12 Biomass Although biomass is not a zero-emissions heating system, it may now be able to be considered as the Scottish Government’s position on biomass has softened as it has suspended its banning of biomass in new build properties. This change of position results from councils like Argyll and Bute lobbying for this fuel source to be permitted in rural areas. 4.13 The difficulties of installing measures This point included the difficulties people faced in engaging installers, having adequate grid capacity, and having access to impartial advice on decarbonising. The LHEES has prioritised addressing all these points as it is acknowledged that these are barriers to decarbonising. 4.14 Next steps An interagency LHEES Delivery Group will be established to develop detailed delivery actions and mechanisms. 4.15 The LHEES process is in its early stage; stakeholders are working to collect, aggregate and disseminate data to enhance the LHEES. Consequently, there has been a rapid proliferation of new data streams. The decarbonisation industry is also undergoing rapid evolution, introducing innovative technical solutions at an accelerated pace. Additionally, the regulatory and financial landscape in this policy area is also rapidly changing. For instance, the Heat in Building Bill and the revised Energy Performance Certificate (EPC) legislation, both of which will significantly impact the LHEES, are scheduled to be enacted by the Scottish Parliament in 2025. Consequently, the LHEES will need to be a flexible document that is regularly updated to align with the duties outlined in these bills, take account of new technological solutions and reflect new funding and investment opportunities as they arise. 5.0 CONCLUSION 5.1 The LHEES consultation process generated a considerable number of responses (112), more than most councils. The vast majority of responses were from individuals who supported the aims and priorities outlined in the LHEES. 5.2 The LHEES has been revised to take into account valid comments that were within the scope of the consultation. The revised LHEES is being presented for adoption. 5.3 Once adopted, the LHEES will be published on the Council's website to fulfil the statutory duty set out in the Local Heat and Energy Efficiency Strategies (Scotland) Order 2022.
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6.0 IMPLICATIONS 6.1 Policy – The Local Heat and Energy Efficiency Strategy 2024 sits within the framework of national policy objectives and local requirements. It relates to the Council’s Decarbonisation Plan, LDP and Local Outcome Improvement Plan and will relate to the Community Planning Partnerships Climate Change Plan. 6.2 Financial – The Scottish Government provides resources to local authorities to develop the LHEES strategy and delivery plan and for staff to coordinate the implementation of the plans. Additional resources would be required to implement the actions outlined in the LHEES Delivery Plan but further work will be required to develop any future proposals and costings. 6.3 Legal - All appropriate legal implications have been taken into consideration. 6.4 HR – None. 6.5 Fairer Scotland Duty - The Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome caused by socioeconomic disadvantage when making strategic decisions and how this has been implemented. 6.5.1 Equalities - All activities have complied with all Equal Opportunities/Fairer Scotland Duty policies and obligations. 6.5.2 Socio-economic Duty - One of the key priorities within the LHEES is to tackle fuel poverty. 6.5.3 Islands - The LHEES will include priorities and actions that will be delivered across Argyll and Bute, including the island communities. 6.6 Climate Change - Strategic priorities and activities will address the net zero transition agenda. 6.7 Risk - Buy-in by key partner agencies and stakeholders could be challenging due to the uncertainty around future funding streams. If Grid infrastructure works are not undertaken quickly, this may have significant implications for implementing projects that enable the electrification of heat. 6.8 Customer Service – None. 6.9 The Rights of the Child (UNCRC) – None. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands, Rural Communities and Housing.
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For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Matt Mulderrig, Development Policy and Housing Manager Matt.Mulderrig@argyll-bute.gov.uk Kirsty Jackson-Stark Kirsty.Jackson-Stark@argyll-bute.gov.uk APPENDICES Appendix 1 - LHEES Strategy Appendix 2 - LHEES Delivery Plan Appendix 3 - Summary of Public Consultation