Martina Kavan
@martinakavan.bsky.social
290 followers 420 following 46 posts
Thinking about heat pumps, energy and decarbonisation at @nestauk.bsky.social
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It's an advisory ruling, but opens the door for more climate lawsuits.

And all started by a group of law students - Pacific Islands Students Fighting Climate Change. 🥊
a hand holding a sign that says climate change is an existential threat
ALT: a hand holding a sign that says climate change is an existential threat
media.tenor.com
"Failure to take appropriate action [...], including through the production and consumption of fossil fuels, the granting of fossil fuel exploration licences or the provision of fossil fuel subsidies, “may constitute an international wrongful act which is attributable to that state”. "
This week's big win 🎉 of the International Court of Justice ruling could change the way states approach NDCs.

What did ICJ say?
⚖️ States are obligated to protect the climate under international law
⚖️ They must adopt ambitions NDCs
⚖️ Failure to do so can trigger reparations to affected countries
Nations who fail to curb fossil fuels could be ordered to pay reparations, top UN court rules
Landmark opinion says those that fail to prevent climate harm could be liable for compensation and restitution
www.theguardian.com
Reposted by Martina Kavan
You can also play with this chart and see how moving levies to gas would affect different types of households.

public.flourish.studio/visualisatio...

(keeping in mind that under status quo, low-income households, and especially those who use electric heating, contribute disproportionately)
Figure 2. Archetype bill changes
A Flourish data visualization by Shaan Jindal
public.flourish.studio
There are different ways to reduce levies on electricity. The last row here shows average changes in annual bill compared to today under our preferred solution:

Shifting levies from electricity to gas + moving ECO off gas bills + increasing fuel support
We've just published our work on reforming energy levies.

Current levies inflate electricity bills by ~20%, and favor fossil fuels over clean energy.

We project impacts of levy reform on a range of households and show that it's possible to make them both fairer and more climate friendly.
How to make electricity cheaper
Reforming the levies on energy bills
www.nesta.org.uk
Overall our response to the fuel poverty consultation argues that:

1. Heat pumps needs to play a bigger role,
2. Rebalancing levies resolves the tension between net zero and affordability,
3. Schemes should move away from “worst first” and treat a lot more homes.
www.nesta.org.uk/blog/we-need...
We need cheaper electricity to unlock a more effective fuel poverty strategy
As fuel poverty rates remain stubbornly high, we call for a stronger role for low-carbon heat, cheaper electricity through levy reform and a move away from deep retrofits in hard-to-treat homes
www.nesta.org.uk
Our take at @nestauk.bsky.social is that making electricity cheaper is necessary in making any fuel poverty strategy sustainable (ie. aligned with net zero).

Without cheap electricity, it is still difficult to fund heat pumps for gas-using low-income households and promise reliable savings.
Government recently consulted on a new fuel poverty strategy for England. Recognizing that what they're doing now isn't making much of a dent in the problem.

Asking questions like "How should we implement the sustainability principle".
I wrote a blog on the role of electricity prices in helping people in fuel poverty.

These are two illustrative scenarios I used to describe the long-term effects of cheap/expensive electricity on public spending and fuel poverty:
🧵
Reposted by Martina Kavan
What if we had no electricity and everything ran on fossil fuels?

This ad keeps making me chuckle.

Enjoy if you have not seen it or rewatch as it is just gold!
Electricity needs to get cheaper, but realistically, low gas prices will also threaten the transition to clean energy.
If we added levies to the price of gas, the wholesale component (currently 58%) would play a relatively smaller role. Cheap gas wouldn't affect the price ratio as much.
Moving levies from electricity to gas would protect decarbonisation efforts from volatility in gas prices. 📉 This chart shows the future electricity-to-gas price ratio (key metric for incentivizing electrification) under wholesale price scenarios with (full lines) and without (dashed) rebalancing.
I'm afraid it'd have to scale up substantially. Levies paid per unit are currently calculated by estimating the total UK consumption in kWh and dividing the revenue needed by that. If the revenue was covered only from a portion of total consumption, levy rate would need to increase by quite a lot
So it would have the same negative effect on the average household while not delivering as big an incentive for larger households on gas to switch (because gas prices would remain the same)?
The good bonus is that it'd massively help fuel-poor households with direct electric heating.
Interesting, so what you're suggesting is the opposite of a rising block tariff. My first thoughts are that you'd have to increase the levy per kWh (maybe triple?) so much that it might disproportionately hit low-income households with low consumption.
The @thecccuk.bsky.social advises ~440,000 heat pump installations in 2030. With a £6k grant for each, the government would pay £2.65bn.

With a £2k grant under levy rebalancing, it's just £880m. A difference of £1.8bn/year.

Not rebalancing levies could cost extra £13.8bn over the next parliament.
By 2030 without rebalancing levies, BUS would need to be at £6,000 to maintain price parity between heat pumps and boilers.

On the other hand, if levies are rebalanced, £2,000 should be enough for the average household.

(chart shows annualised costs over 15 years)
Moving the majority of levies from electricity to gas bills would bring the ratio of electricity to gas prices from 3.9 to 2.7. And it would technically cost the government nothing.

Heat pump owners would pay on avg. £380/year less than households on gas, even including upfront costs and interest.
The current £7,500 BUS brings the total cost of having a heat pump on average down to the level of a gas boiler.

But if homeowners could save hundreds of £ on energy, they wouldn't need such high subsidies on upfront costs.

Electricity needs to get cheaper relative to gas.
Fixing electricity pricing is urgent. Without it, decarbonisation stalls and gov will need to spend billions more on subsidies.

I wrote a blog explaining the role of energy levies in the total cost of heat pumps. 🧵🔽

This chart shows the projected annual costs over 15 years under status quo: