Electricity Demand Reduction pilot launched in the UK to help save energy

The government has launched a £20 million Electricity Demand Reduction (EDR) pilot, offering financial incentives to encourage businesses to install measures to reduce energy consumption.

The EDR pilot will back companies and organisations willing to install more efficient electrical equipment that reduces their peak electricity demand, such as LEDs instead old bulbs or improved motors and pumps.

It aims to reward those promoting “lasting reductions” in electricity demand, in order to assess whether the scheme can be included in the government’s planned capacity market.

Organisations interested have been invited to submit an application. Once they have qualified they will take part in a competitive auction, where they can bid in kilowatt (KW) savings from projects they plan. Those showing the best value for money will win and will be rewarded once the savings are delivered.

The government will accept applications until October 31, with the auction to take place in January.

“Reducing electricity demand through being more efficient can help cut energy bills for consumers, reduce costs for businesses and bring down our emissions,” the Department of Energy and Climate Change (DECC) said.

“We are running a pilot scheme to examine whether capacity savings resulting from the installation of more efficient electrical equipment could form part of the Capacity Market and to learn lessons for government and stakeholders on the delivery of EDR schemes.”

On Monday, a survey by Siemens involving 600 manufacturers found that rising energy costs have become the top concern for the majority of businesses.

Photo: Liz West via flickr

Further reading:

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