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Electricity reduction scheme launched by government

Electricity reduction scheme launched by government

Electricity reduction scheme launched by government

The government has officially launched its long-gestating Electricity Demand Reduction (EDR) pilot, which is intended to provide monetary support for companies that are looking to curtail their energy usage.

Financial incentives will be offered for firms that install equipment that delivers lasting reductions in peak electricity demand on their premises.

It is hoped this will drive uptake of energy efficiency measures, such as replacing light bulbs with more environmentally friendly alternatives like LEDs, or adopting more efficient motors and pumps.

Companies can get involved by accessing the Participant Handbook on the government's website, which offers detail on practical considerations such as eligibility and payment time frames.

The EDR pilot Measurement and Verification (M&V) Manual outlines all of the different options available and how a firm can go about measuring the precise amount of energy and money it is saving.

Starting in December this year, developers will be able to bid for payments to provide backup power through the new capacity market in the winter of 2018.

Furthermore, the auction process will be opened to smart grid-enabled demand response providers in 2015 and 2016.

Ministers are also considering extending the scheme so as to cover longer-lasting energy saving programmes.

Formal expressions of interest are due in by September 30th and can be submitted with an Expression of Interest Form. Final applications - including M&V plans - have a deadline date of October 31st.

This comes in the wake of criticism from some quarters that it would prove more cost effective to incentivise energy efficiency upgrades themselves, rather than applying the financial backing to the deployment of smart grid systems or the development of new power plants.

A total value of £20 million is represented by the EDR scheme - and the first pilot auction is for £10 million.

Bidding will take place in January 2015 - and organisations that register can use the the kW savings they plan to deliver through any given energy-saving project to form the basis of their bid

Several events will be held to promote wider understanding of the schemes, including workshops, teleconferences and webchats.

A statement from the Department of Energy and Climate Change said: "The EDR pilot scheme will provide organisations with financial support to install more efficient electrical equipment which reduces their peak electricity demand."

"Organisations that register - and whose projects qualify - will be invited to take part in a competitive auction. Participants can bid in kW savings from projects they plan.

"The winning bids will be those that represent best value for money (ie, the lowest price for each kW offered) up to the total budget available in the auction. Successful bidders will receive payments once savings are delivered and evidence received."

Other ways companies could attempt to reduce their carbon footprint include careful management of existing resources. For instance Aurora offer professional cleaning services using only biodegradable and carbon free products, which will undoubtedly help to minimise your impact on the environment.

Posted by William Rodriguez