The analysis takes into a«ount the interaction between choices indifferent parts of the system, namely: • heat pumps usearound three times less energythan hydrogen boilers but have higher upfront in-building installation costs • hydrogen heating reduces thedirect use of electricityand peak electricitydemand from heating but increasesoveral I demand because electricityis used to produce hydrogen • electricity demand for hydrogen production through electrolysis will affect the unit cost of electricity and the availabilityof 'spare (i.e. curtailed) electricitywill impact the cost of hydrogen production • hydrogen heating requires a more extensive system of hydrogen pipelines and additional storage, but no hydrogen heating requires more decommissioning of the natural gas network. The Commission has assumed that hydrogen used in healing will predominantlycome from green hydrogen — produced by the electrolysis of water using low carbon electricity. This is because long terrn reliance on blue hydrogen — produced using natural gas with the carbon emitted in the process captured and stored—has more negative impactsfor both the environment and resilience,which are discussed under those criteria. Using electricityto produce hydrogen which isthen used in boilers to produce heat reguiresfive to six times moreelectricirythan using the same electricity directly in a heat pump.uThis is because more energy is lost in converting electricityto hydrogen, and heat pumps use less energy than boilers to produce the same level of heat However, this does not result ina whole energy system with hydrogen healing being five times more expensiveonce all costs, efficiencies and interactions are accounted for. The Commission's analysisestirnates that a system with hydrogen heating would be around 12 ['mesas expensive than a system without 6