29.11.12
New proposals could pay for energy savings
Firms could be paid to cut their energy use, the Government has proposed, as the Energy Bill is due to be published today.
The Bill includes extra investment in gas, renewables and nuclear power. The Government has suggested that a 10% reduction in electricity demand could produce savings of around £4bn in 2030, which would more than compensate for the upfront cost of efficiency investment.
Proposals to save energy and reduce costs will also be announced, including paying companies for each kilowatt-hour saved through energy-saving measures such as low-energy lighting and offering financial incentives to encourage people to buy efficient equipment for homes and businesses.
Energy-intensive industries could also be exempt from additional costs arising from the transition to low-carbon energy. Investment in green power generation is to increase to £7.6bn, from £2.35bn.
An estimated £110bn is needed in the next decade to renew the UK’s ageing electricity infrastructure, and the UK is intended to supply 30% of its electricity from renewables by 2020.
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.
“If you look at all our energy policies together with energy efficiency for example and our reforms to tariffs, we believe that people’s bills will be lower in 2020 than they otherwise would have been because of the way we’re helping people save energy.
“There’s a real challenge in this decade because we’re going to see lots of power stations coming to the end of their life.
“Decarbonisation should not mean deindustrialisation. Energy-intensive industries are an important part of the UK economy. There would be no advantage – both for the UK economy and for global emissions reductions – in simply forcing UK businesses to relocate to other countries.”
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