Heatwave an energy blind spot for British policymakers

LONDON • A blind spot is building up in Britain's energy market as temperatures are set to break new records in England.

A Met Office warning that temperatures could hit 40 deg C for the first time means that demand for air-conditioning and other cooling systems will soar.

Still, there is little evidence on how much that demand for cooling will increase and what impact it will have on energy markets that are already racing to secure supplies for winter.

"The lack of data is certainly an issue for policymakers," said Mr Adam Bell, head of policy at consulting firm Stonehaven.

"There is an assumption that the market will handle that, but there is definitely a risk as the weather gets hotter and hotter and heatwaves become more common."

Heatwaves are becoming more prevalent over the summer in Britain and other places around the world as the planet warms.

A British Parliament briefing last year said that in 2018, the size of the global market for refrigeration and air-conditioning exceeded that of solar panels, and global electricity demand for cooling alone is forecast to triple by 2050.

Yet there is barely any information about Britain itself.

"From April onwards, we start seeing demand increase for AC systems and it will continue to grow as the climate heats up," said Mr Ryan Philp, who works as a business development manager for Daikin UK, an air-conditioning manufacturer.

Heatwaves in Britain have typically lasted only a few days of the year.

But while the impact of air-conditioning use is currently low compared with other uses, it could rise as climate change poses a growing risk.

Countries around Europe are rushing to secure energy for winter as Russia threatens to curb gas supply to the continent.

This winter, average household bills in Britain are set to be almost three times the level of last year.

BLOOMBERG