The Government is set to announce energy efficiency as a key part of the Energy Bill today.
It will propose the reduction of the UK’s energy demand as part of the Electricity Market Reform (EMR). According to statistics from DECC, a 10% reduction in electricity demand could save around £4 billion by 2030 and cut 4.5 megatonnes of carbon emissions, equivalent to that produced by a large city in a year. It could also save the amount of electricity generated by five power stations in a year.
The new proposals are set to work on DECC’s ‘Energy Efficiency Strategy’ published earlier this month, which suggested the UK could be saving 196TWh of energy in 2020 through “socially cost-effective” investment in energy efficiency.
Energy Secretary Ed Davey said: “The Coalition Government is absolutely determined to help cut energy bills for consumers, reduce costs for businesses and bring down our emissions. We need to make our energy supply fit for the 21st century and in a world of rising gas prices we must power our homes and businesses in a much more efficient way.
“That’s why today I am setting out economy wide, ambitious proposals to cut electricity demand. These build on our energy efficiency strategy published earlier this month and will help us lower bills and reduce the need for expensive new energy generation.”
DECC is seeking views on a number of key proposals to cut electricity demand such as incentives for each kWh saved through energy saving measures installed like efficient lighting. Others include financial incentives to encourage efficient measures in homes and businesses and an energy suppliers obligation in the non-domestic sector.
The Government plans to outline the final details of the demand reduction consultation early next year.