The UK Government’s current energy efficiency policies will only deliver one-third of the 150 terawatt hours (TWh) of energy savings every year which are potentially available by 2030, according to a new research.

DECC published a study yesterday as part of the electricity market reform, which showed 150 Twh of electricity savings could be made every year, with the biggest savings coming from building efficiency improvements and lighting controls in the commercial sector.

However, the Electricity Demand Reduction Assessment by McKinsey & Company also found around 100 Twh of those savings would not be realised if the Government fails to improve existing policies.

Energy Minister Charles Hendry said the Government will be discussing on how to get the potential savings.

He said: “With such vast potential for more efficiency in the electricity system, we must look closely at all the possibilities.

“That’s why we have today agreed to explore these options through a formal consultation.”