The Black Country industrial Cluster has welcomed publication of the second National Infrastructure Assessment by the National Infrastructure Commission.
The Black Country industrial Cluster has welcomed publication of the second National Infrastructure Assessment by the National Infrastructure Commission (https://nic.org.uk/studies-reports/national-infrastructure-assessment/second-nia/).
This report, produced once every five years by an independent agency of the Treasury, calls on government to accelerate electrification of UK infrastructure and reduce electricity costs for industry. It rules out hydrogen as a fuel to replace gas in domestic boilers, and calls for urgent action to incentivise businesses (as well as homeowners) to adopt heat pumps. The report says the significant changes and investment required all need to take place within the next 12 years, but it also proposes financial mechanisms to make this possible and push electricity prices back down to at least half their current level.
The report calls for significant liberalisation and localisation in planning and regulation for energy networks, and asks government to come up with clear infrastructure plans by the end of 2024 for areas like the Black Country (where some companies are likely to need hydrogen supply in the future for process heat). The commitment to economic growth and opportunity created by lowering energy bills and creating greater certainty is explicit and welcome, as the report says:
“There is an opportunity for UK businesses to capture market share in global low carbon supply chains, where they can build competitive strengths. Decarbonising the energy supply, lowering bills and improving the stability of prices also offer the chance for UK services and manufacturing to stay internationally competitive.”
Responding to the report, Matthew Rhodes, one of the directors of BCIC, said:
“This is a welcome recognition of the critical need for the government to provide clarity in this area. The Black Country Industrial Cluster has been arguing for many of the recommendations in this report from the start, and this is exactly the kind of approach by government we were established to support. This report suggests electricity prices in 2030 could be less than half what they are now if we get these policies right, and this is precisely what businesses in this region need. It also says that local areas will need to make their own plans and know best what is right for them, and again, that is exactly what we have been saying for some time.
“I’m delighted the NIC have published this report now and very much hope that the government has the wisdom and political will to adopt the recommendations in full and help the Black Country make this happen.”