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UK Energy Efficiency
Chris Leigh
Household Energy Efficiency and Fuel Poverty
Climate Change Group
DECC
UK Energy Efficiency
Overview of Government’s low carbon household policy
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Why we prioritise energy efficiency
What we do on energy efficiency
Home Energy Saving Programme – CERT, CESP
What the future holds
UK Energy Efficiency: Strategy
We face two main energy challenges:
1. To tackle climate change by reducing carbon emissions both
within the UK and abroad; and
2. Ensuring secure, clean and affordable energy as we become
increasingly dependent on imported fuels
Energy Efficiency has a key role to play
UK Energy Efficiency: Strategy
Reduce service demand, avoid waste
Reduced energy demand
Improve technical energy efficiency
Low carbon economy
Reduce the carbon intensity of energy supply
UK Energy Efficiency: Strategy
900
million tonnes
(carbon dioxide equivalent)
800
basket of greenhouse gases
Kyoto target
700
600
including impact of EU ETS
500
carbon dioxide
including impact of EU ETS
400
300
200
Note:
Data for 2007 are provisional.
100
0
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
UK Energy Efficiency: Strategy
Climate Change Committee
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80% reduction in greenhouse gas
emissions by 2050
Carbon Budgets for first three periods
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Intended budgets require greenhouse
gas emissions reduction of 42% in
2020 relative to 1990 levels
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Interim budgets require greenhouse
gas emissions reduction of 34% in
2020 relative to 1990 levels
UK Energy Efficiency: Strategy
Climate Change Committee – Emissions Tracker
UK Energy Efficiency: Strategy
Energy efficiency interacts with our other energy policies
June 2008 - Renewable Energy Strategy (RES) consultation
•Target: 15% renewable energy by 2020
•30-35% electricity from renewables
•Starting point is to save energy
•energy efficiency measures up to £45/tCO2 are
more cost effective than additional renewables
UK Energy Efficiency
Energy Efficiency Strategy
June 07: National Energy Efficiency Action Plan sets
out measures to meet target of 9% reduction in
energy use as set out in EU Energy Services
Directive
We expect to exceed that target, reaching an
estimated 18% reduction in energy use by 2016
Our savings target by 2016 is 136.5TWh, and we
expect to exceed this, saving 272.7TWh – equivalent
to 69MtCO2 by 2016
UK Energy Efficiency: Households
Energy efficiency policies in the household sector
• Buildings
new build
existing stock
•Appliances in our homes
•Providing information and advice
•Communicating and encouraging
behaviour change
UK Energy Efficiency: Households
Energy efficiency policies in the household sector
New buildings:
Tightened Building Regulations – a new home
built in 2008 is 40% more efficient than in
2002,
Aim is to make all new buildings zero carbon
by 2016 – consultation shortly,
Identifying, accelerating and promoting lowcarbon technology to support these aims
UK Energy Efficiency: Households
Energy efficiency policies in the household sector
Existing buildings:
Supplier Obligation
Obligation on energy suppliers to achieve
energy saving targets by promoting energy
efficiency improvements in homes
Key policy lever –
Energy Efficiency Commitment 2002 -08
Carbon Emissions Reduction Target 2008-11
Post 2011 Supplier Obligation
Successful, cost-effective approach
UK Energy Efficiency: Households
Energy Efficiency Commitment 2002 - 2008
2.9MtCO2 saved per annum by end of
period
Supplier Investment £2.9m
Net lifetime benefits £10bn+
1.8m cavities insulated
2.9m lofts insulated (virgin and top up)
UK Energy Efficiency: Households
Carbon Emissions Reduction Target 2008 - 2011
4.2MtCO2 saved per annum by end of
period
Supplier Investment £2.8bn
Net lifetime benefits £12bn
Illustrative mix – 2.9m cavities insulated,
2.7m lofts insulated (0.6m DIY)
40% priority group
UK Energy Efficiency: Households
Home Energy Savings Programme – September 2008
£1bn investment package announced by Prime
Minister targeting improved energy efficiency
6 million households benefiting over three
years
Increase of 20% in CERT target – further
£0.56bn investment
Community Energy Savings Programme £0.35bn investment by suppliers and
generators
£74m extra for Warm Front
UK Energy Efficiency: Households
Community Energy Savings Programme
£0.35bn investment
Carbon based obligation but taking account of
fuel bill savings
Focus on up to 100 deprived / low income
communities around the country
Intensive whole house / whole street
Community focused, partnership approach
UK Energy Efficiency: Households
Community Energy Savings Programme
Next steps
Primary legislation now in place
Continuing engagement with stakeholders
Formal public consultation shortly
Draft statutory instrument early 2009
Scheme to come into operation by winter 2009
UK Energy Efficiency: Households
Energy efficiency policies in the household sector
Other policies:
Improving energy efficiency of
appliances in the home
•EU standards
•The Market Transformation Programme
Fiscal measures
•Reduced VAT
Fuel poverty measures
•Warm Front scheme
Improving social housing
•Decent Homes
UK Energy Efficiency: Households
Energy efficiency policies in the household sector
Information, advice and communications
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The Energy Saving Trust
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Labelling
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Energy Performance Certificates
for Buildings
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Smart Metering
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Carbon calculator >1m users
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Communication Campaigns –
Act on CO2 advice line
UK Energy Efficiency: What next?
For the future…
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There is lots more we can do on energy efficiency
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Renewable strategy improves the economic attractiveness of certain
measures
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Consulting shortly on CERT +20% and CESP
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Consulting shortly on energy efficiency, focussing on action in the longer
term through to 2020. Major contribution to carbon budgets
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Will deliver a new Heat and Energy Saving Strategy in 2009
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Will deliver a new low carbon homes strategy in 2009
UK Energy Efficiency
THANK YOU
www.decc.gov.uk
www.defra.gov.uk