Government commits to £10 million investment fund for business energy efficiency

The UK Government has revealed plans to help businesses and organizations of any type reduce their overall energy expenditure by setting up an Electricity Demand Reduction auction scheme and allocating £10 million for the first phase of this project.

Businesses and organizations joining the scheme 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.

Implementing energy efficiency measures could mean savings equivalent to 9% of total demand by 2030 – reducing the need for new power stations. Over 300 organisations as diverse as hospitals, airports and supermarket chains have already come forward to indicate they are considering participating in the auction.

The Government also plans to remove unnecessary barriers to investment in infrastructure by amending the rules that prevent the same companies investing and exercising rights in both generation and transmission networks at the same time.

Energy and Climate Change Secretary Ed Davey commented: “Our plan is powering growth and jobs in the UK economy. We are building a secure, sustainable energy system for the future, dealing with an historic legacy of underinvestment and neglect that threatened to undermine the whole economy.

“The funds we invest now in keeping the lights on could, in the future, be available to support cheaper projects that deliver lasting reductions in peak electricity demand.”