Market opportunities for Scottish direct electric heat manufacturing

Scottish Enterprise appointed Carbon Limiting Technologies (CLT) to undertake an assessment of the current state of the market for direct electric heat solutions up to 2030 in Scotland. Direct electric heating is defined as heating provided directly from electricity. This includes infra-red heating, storage heaters, electric radiators, underfloor heating, electric boilers; and associated control systems. Specific objectives of this assessment were to: provide as complete a view as possible of Scottish manufacturing capability in direct electric heat and companies active in the sector; summarise market statistics and opportunities in the direct electric heat market including technology trends, drivers, barriers, market size, and growth; provide recommendations on how Scottish companies and stakeholders can take advantage of the market opportunities; provide recommendations on how Scottish Enterprise and the public sector can support skills and employment growth in the direct electric heat manufacturing base.

CLT carried out desk research and structured interviews with key stakeholders. They produced a technical assessment of the various technologies and a list of Scottish company capability.

There is a severe lack of awareness and understanding of direct electric heat technologies. There are 160,000 customers on legacy storage heaters with potential tariff increases from March 2024. Direct electric heat manufacturers rarely interact with each other or participate in the same forums/networks. The role for direct electric heat in the decarbonisation of commercial and industrial sites could be significant. The report includes details of the nine companies identified in Scotland who are involved in the manufacture of direct electric heat products.

1. Installer and electrician trade associations, in conjunction with colleges, should develop education initiatives targeting installers, electricians and training and skills programme providers to provide neutral, robust and transparent information of the benefits and drawbacks of direct electric heat across property types. 2. Scottish Government to further consider the consequences and options arising from the proposed shutdown of the radio/tele metering facility (expected March 2024) for storage heating systems. 3. HeatSource and Scottish Enterprise to continue to facilitate introductions, connections and networking across the local supply-chain and supporting ecosystem for direct electric heat technologies. 4. Scottish Government to undertake further research and understanding of the market size and potential deployment of direct electric heat technologies in the commercial and industrial sectors.