Edinburgh-based UK Green Investment Bank (GIB) has announced £1m funding that could increase uptake of combined heat and power technology.
It will be matched by another £1m of private capital and the total amount is expected to finance up to 20 projects.
Typical projects would be in the range between £25,000 and £400,000 and could include biomass boilers, low energy lighting and combined heat and power – helping reduce energy bills by around 20%.
The cash will be invested into ReEnergise Finance’s Smart Energy Finance vehicle, which has been set up to provide loans to cover the costs of improvements.
Meanwhile the head of the UK Combined Heat and Power Association, Dr Tim Rotheray has welcomed the announcement of another initiative – The Energy Savings Opportunity Scheme (ESOS) – which is expected to help reduce business energy costs by at least £250m by 2016, and a total of £1.6 billion by 2030.
Under the scheme, businesses will be required to look closely at their energy usage to identify cost-effective energy savings.
“Energy management has the potential to deliver tens of billions of pounds in savings while increasing the profitability and competitiveness of the UK’s businesses, and this new scheme should help facilitate these investments,” Rotheray said.
“However, with an increasing array of tax and regulations on big energy consumers, it is increasingly difficult for businesses to understand how they can reduce their energy costs in the most cost effective way.
“Our analysis shows that energy efficiency could save UK businesses and industry more than £11 billion by 2020. If we are to fully unlock this potential we need to put the consumer at the centre of policy and bring these various policies and tax strands together to make one synergistic system.”
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