Think tank Policy Connect has released the report on the supply of low carbon heat in the country.
The 'Policy for Heat- Transforming the System' study concludes that at present, the UK is on track to fall short of its low carbon heat targets.
The REA has welcomed the findings and now calls for an extension of the government's Renewable Heat Incentive (RHI).
The energy target is for 12% of the UK's heat to come from low-carbon or renewable sources by 2020.
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The REA said if this is not met, the transport and electricity sectors must contribute more to meet the overall target.
Frank Aaskov, Policy Analyst with the REA, said: "Biomass is correctly identified here as not only the leading source of the UK's renewable heat, but as a versatile and sustainable source of heat. It is widely available today and can deliver significant GHG savings. Biomethane is also emerging as critical to decarbonizing the gas grid. Despite its success of biomass in particular, other sectors need to be encouraged.
"Heat is central to our meeting our low carbon energy targets. I think that there is strong potential for geothermal heating in the UK, as well as for biomethane and other technologies. The RHI can easily be improved and extended to achieve this."
The RHI budget runs out April 2016, and its future is expected to be announced in the government's Comprehensive Spending Review (CSR) on the 25 November.
(LM/MH)
