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Businesses can cut energy costs with £10mn govt fund to improve efficiency

Businesses can cut energy costs with £10mn govt fund to improve efficiency

Businesses can cut energy costs with £10mn govt fund to improve efficiency

Business, industry and other organisations are set to receive government support when it comes to cutting their energy emissions, thanks to the launch of a new £10 million fund that has been made available in the hope of improving efficiency and reducing demand.

Energy and climate change secretary Ed Davey announced the development on July 17th and also unveiled new plans intended to remove any existing barriers to investment in the nation's energy infrastructure.

Speaking at the Confederation of British Industry's Energy Conference, Mr Davey underlined the fact that £45 billion of investment has been enjoyed by the UK's energy sector between January 2010 and December 2013.

Almost £8 billion has been committed to renewable technologies in 2013 alone - and these comments came alongside the publication of the Conservative-led coalition government's first report on energy investment in the UK.

It is hoped that these new rounds of funding will serve to tackle a wider legacy of underinvestment and neglect, which Mr Davey argues has come to characterise Britain's energy sector to such an extent that it even started to threaten energy supplies.

All of the investment gathered since 2010 is set to reverse this trend and help support the establishment of a new low-carbon energy system, which is forecast to support up to 250,000 jobs by 2020.

The first £10 million Electricity Demand Reduction auction has been drawn from a £20 million budget for the full pilot. Funding will be competed for by businesses that are embarking on projects to reduce electricity demand. Particular attention is to be given to those schemes that would not be able to go ahead without the cash injection.

In addition to reducing carbon emissions and demand on the National Grid, the projects will also save money on electricity bills for the businesses themselves. Firms interested in applying for the finance are invited to submit expressions of interest on July 29th.

"Our plan is powering growth and jobs in the UK economy," Mr Davey commented, adding that it is hoped this initiative will serve to build a secure and sustainable energy system for the future.

He claimed the underinvestment of the past could have gone on to undermine the whole economy if it had been allowed to continued unaddressed. However, cheaper projects that are set to deliver reductions in peak electricity demand for the long term will be supported by the new rounds of funding.

"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," Mr Davey remarked, adding: "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.

"And by stripping away barriers to investment in our energy market, we'll make attracting capital investment cheaper and easier - meaning real benefits for the British economy and British consumers," the minister continued.

 

Posted by Jamie Kendell