10M for UK Business and Industry to Improve Energy Efficiency
UK business, industry and other organisations will get help to cut their energy costs with £10 million available this year to improve efficiency and reduce energy demand, and more to follow.
The announcement was made yesterday by UK Energy and Climate Change Secretary Ed Davey at the CBI’s Energy Conference. He stated that the UK had seen nearly £8 billion investment made in renewable technologies in 2013 alone, as he published the Government’s first report on energy investment in the UK.
Davey said: “I want to unlock the untapped potential of better efficiency in electricity use – so that more efficient kit can compete with building new power stations in the future. Our £20 million pilot will fund schemes that will help reduce our demand – not only saving businesses and their customers money, but reducing the amount of electricity we’ll need to generate.”
Davey set out the details of the first £10 million Electricity Demand Reduction auction from a £20 million budget for the full pilot. Businesses will compete for funding for projects that reduce electricity demand, where projects would not have happened without the funding. The projects will save businesses money on electricity bills as well as cutting carbon emissions and demand on the National Grid.
Electrical efficiency could mean savings equivalent to 9% of total demand by 2030 – reducing the need for new power stations. The Government is testing whether projects that deliver lasting electricity savings at peak times, like replacing old light bulbs with LEDs or improving motors and pumps, could compete with generation, demand side response (DSR) and storage in the UK Capacity Market.
Over 300 organisations as diverse as hospitals, airports and supermarket chains have already come forward to indicate they are considering participating in the auction.
Mr Davey told the CBI that the changes were part of the Government’s strategy to create an energy secure, energy efficient economy.
The report published today shows that energy projects make up around 60% of the UK’s total infrastructure project pipeline – worth around £200 billion in its entirety. The UK remains one of the most attractive places in the world to invest in renewable energy, according to Ernst and Young, and is the best place in the world to in invest in offshore wind and marine power. Fifteen per cent of Britain’s electricity now comes from renewable sources.
Photo: Canary Wharf at Night by Dave Pape, public domain.
Friday 18th July 2014