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September 2021

tariff design

Rebalancing energy levies to increase electrification of heating

Policy choices in the UK are contributing to a reverse incentive in which the most affordable heating options will not get the country to its carbon reduction goal. Gas is cheap and electricity is expensive — in part because the costs of social and environmental levies fall disproportionately on electric rates. Jan Rosenow and Richard Lowes explain ways for policymakers to balance programme levies and the implications of the proposed solutions.



From laggard to leader: How the UK can capitalise on the heat pump opportunity

By 2028, more than 600,000 heat pumps will be installed annually in the UK if the country meets its current targets. Achieving this rate will require a massive installation and manufacturing push that will need governmental support. As Richard Lowes, RAP’s newest senior associate, explains in an op-ed in Business Green (paywall version), more assistance for the burgeoning heat pump industry is needed, as well as a ban on new fossil fuel boilers.



Trust, not control: Germany, EVs and the power of consumer choice

If at first you don’t succeed, try, try again. This is also true for policymaking. Legislators are tasked with balancing the interests of all stakeholders, which can be exceptionally challenging for complex issues such as the transitions to clean energy and clean transport. RAP authors share a cautionary tale from Germany about what happens when policymakers fail to adequately consider the value of consumer choice, innovation and power system efficiency — and recommendations to remedy the situation.



Unlocking demand-side response in Turkey

A study by SHURA Energy Transition found that wind, solar and other renewable energy resources can grow to represent 50% of Turkey’s power mix by 2030. RAP partnered with SHURA to explore policies to maximise the value of renewables, encourage investment in clean technology and mitigate consequences for the grid and consumers. Demand response is key.

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Network tariff reform to advance the energy transition

Network tariffs with demand charges are hampering the energy transition in Germany. Power systems will rely increasingly on the willingness of industrial consumers to shift when they use energy. To support this change, it is critical that network tariffs reflect and reward this flexibility. Agora Energiewende and RAP offer thought-provoking ideas on the topic (in German).

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EU ETS2: Exploring its role in decarbonising transport and buildings

Few aspects of the European Commission’s proposed Fit for 55 legislation prompted as much debate as the ETS2, a separate trading system for the buildings and transport sectors. Leonardo Energy and RAP welcome Sofie Defour from Transport & Environment and Samuel Thomas from RAP to break down the details of this policy.

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“A bad strategy would have been: hydrogen used everywhere, to heat homes, in personal transport — that it is a panacea.”

Jan Rosenow commented on the UK hydrogen strategy released last month.


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