UK Energy and Climate Change Secretary Ed Davey (pictured) has announced that £10 million is to be made available this year to help business, industry and other organisations cut their energy costs by improving efficiency. Davey also unveiled new plans that will remove barriers to investment in energy infrastructure.
Speaking at the Confederation of British Industry’s (CBI) recent energy conference Davey set out the details of the first £10 million Electricity Demand Reduction auction from a £20 million budget for the full two-year pilot. Businesses will compete for funding for projects that reduce electricity demand by at least 100 kW throughout the winter peak and where projects would not have happened without the upfront funding. Expressions of interest open on 29 July and over 300 organisations as diverse as hospitals, airports and supermarket chains have reportedly already come forward to indicate they are considering participating in the auction.
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.’
Electrical efficiency could mean savings equivalent to 9% of total demand by 2030, the government believes.