This piece is taken from a Department of Energy and Climate Change (DECC) white paper.
There is a simple truth — energy efficiency belongs at the heart of a low-carbon economy.
By reducing energy use and cutting down on waste, we can reduce energy bills, make our energy system more sustainable and drive down greenhouse gas emissions.
UK energy efficiency varies from good to dreadful
“We could be saving 196TWh in 2020, equivalent to 22 power stations through, socially cost-effective investment in energy efficiency. That is around 11% lower than the business as usual baseline. It could also reduce carbon emissions by 41 MtCO2e, contributing to achieving our carbon budgets,” said Edward Davey, Secretary of State for Energy and Climate Change.
“Britain’s homes have been built and developed over hundreds of years, and their energy efficiency varies from good to dreadful. Bringing as many homes as possible up to the level of the best is not only a wor thwhile investment.”
The government has a formula
The Energy Efficiency Deployment Office (EEDO) has developed a strategy to support the delivery of existing UK energy efficiency policies, by improving our evidence base and analysis, ensuring effective delivery against the observed energy efficiency potential in the economy and by bringing coherence to the Government’s offer to the consumer.
As the evidence base is developed, the objective will be to share information, by region and sectors where possible, and consider solutions to achieving further energy efficiency potential as a group.
The UK now has a huge opportunity to optimise the energy use of both domestic and business customers, reducing bills and/or warming homes, while at the same time, delivering a more sustainable society. Individuals can do this through taking action to reduce their demand, such as turning off energy using products that are not in use, buying products that are more efficient or installing energy efficiency measures in their homes.
“DECC claim the UK could be saving 196TWh in 2020, equivalent to 22 power stations through, socially cost-effective investment in energy efficiency”
Smart users, Smart Meters
We must continue to find solutions, such as those provided by the Green Deal and Smart Meters, which allow us to tap into the cost effective energy efficiency improvements that are right there in front of us; whether it be through more efficient industrial processes, better use of heat, or simply installing energy efficient lighting.
- The energy efficiency sector in the UK already accounts for about 136,000 jobs and had sales of £17.6 billion in 2010/11.
- Sales in this sector have grown by over 4% per year in the UK since 2007/08.
- Sales are projected to grow by around 5% per year between 2010/11 and 2014/15.
- However, there is more potential in the market.
Stephen Chu, the US Secretary of Energy, has said that “energy efficiency is not just low-hanging fruit; it is fruit that is lying on the ground”. With the right market in the UK we could unlock more of the potential for energy efficiency investment, helping to generate growth and jobs.
Emission reductions: To deliver against our greenhouse gas emission targets over the coming decades in the most cost effective way, we need energy efficiency to improve significantly across all sectors. The 2011 Carbon Plan22 sets out scenarios through which the UK could meet its legally binding target to reduce greenhouse gas emissions by 80% between 1990 and 2050.
Looking ahead to the coming year, EEDO’s work will include leading the implementation of the EU Energy Efficiency Directive, including consulting on the introduction of energy audits for large commercial enterprises in the first half of next year.
EEDO will also works with the other Government Departments and the Devolved Administrations to further develop the evidence base against the gaps identified as part of the analytical work that supported this strategy; developing a series of sector by sector guides on what benefits increasing energy efficiency can bring to consumers by next summer.
The way forward
Improving the way we use energy is essential to our future economy and future way of life. We have the opportunity to lead the world in becoming more energy efficient and we must take it.
Spokespersons from the UK House of Lords have commented that the strategy document “isn’t bad in of itself” and that it correctly identifies the problems with the current UK energy efficiency market and the reasons for its underdeveloped state.
These “problems” include a lack of competition and economies of scales, a dearth of clear & consistent information available to the buyer, differing standards of measurement, the ‘hassle’ factor and a failure to incentivise the market. For example, how does a landlord fiscally benefit from the reduction in his tenants’ bills, yet the landlord is the one responsible for making improvements to their buildings?
Final thoughts…
The measures announced to combat these problems seem “small fry” when compared to the wildly optimistic claims that the UK’s energy consumption could be cut 11%, or that 22 power stations might be taken off the grid.
The Green Deal in the private realm has been beset by many problems, what measures will be put in place to stop the same happening in business? However, RE:FIT and the energy labeling trial with John Lewis are welcome steps. The biggest hope for the future comes from DECC’s recognition of the need to stimulate the potentially vast EPC market.
Although the document sheds little light on exactly how DECC hopes to do this, governmental recognition of this potentially large and energy saving market should be greeted with enthusiasm.