Annex 7.0
THE FUNDING AND CO-ORDINATION OF RESEARCH
INTO ENERGY EFFICIENCY MEASURES IN THE DOMESTIC AND INDUSTRIAL
SECTORS, AND HOW WELL RESEARCH IS TRANSFERRED INTO APPLICATIONS
1. Energy efficiency is central to UK efforts
to meet its energy and greenhouse gas emissions targets. Estimates
show that energy efficiency can deliver over half of the cuts
in CO2 emissions needed by 2020 to be on track for the UK's goal
of CO2 reductions of some 60 per cent by around 2050. However,
in order to meet our targets to 2010 and beyond there is a need
to double the rate of energy efficiency improvement compared with
our performance in previous decades. RD&D into energy efficiency
technologies, and support for socio-economic and behavioural research,
will be essential if we are to maintain this doubling beyond 2010.
It will also help to build a low carbon goods and services sector
to capitalise on home and overseas market opportunities.
2. There is a clear role in the energy efficiency
sector for publicly funded RD&D programmes. Firstly, to provide
coherence and focus for energy efficiency across the sector. The
energy efficiency sector, with a few notable exceptions, is not
a readily-identifiable industry like renewables. Many of the technologies
(eg boilers, lamps, motors) are simply the most efficient models
in a manufacturer's range, and are regarded as the "best"
models by both suppliers and customers, rather than "energy
efficient" products per se. Secondly, the market pull for
energy efficiency is weak. Market based signals on their own are
insufficient and too short term to stimulate the private sector
to invest at the necessary level to bring forward step-change
technologies, which might have a 10-20 year timeframe. Publicly
funded programmes help bridge the RD&D funding gap and stimulate
market interest.
3. In the short run (to 2010) the key priority
will be to stimulate the uptake of existing energy efficiency
technologies developed over the last 20 years but which are not
being widely deployed. The focus will be on the following:
— Demonstration of how these technologies
perform in real life situations to give market and user confidence
to use unfamiliar technologies. In the non-domestic buildings
sector, demonstration is needed at the design stage, and at the
operational stage where large-scale commercial demonstrations
are needed.
— New research to help understand the
impact of energy efficiency measures and overcome inertia in the
market. "Whole systems" research is needed which takes
into account market dynamics, industrial structures, policy incentives/regulation,
changing lifestyles/expectations, and other factors that could
change sectoral and individual behaviour. This research would
help to identify the most effective combination of policy instruments,
and quantify their costs and potential economic, social and environmental
benefits. It would need to complement or be closely connected
with existing programmes (eg the Research Councils' "Towards
a Sustainable Energy Economy" programme). In this context,
more research is also needed to monitor and evaluate energy efficiency
measures, eg the £5.4 million Carbon Vision programme "Buildings
for Low Carbon Communities".
4. In the longer term (to 2020 and beyond),
two categories of R&D are needed to stimulate the technological
development of energy efficiency and low carbon technologies:
— Incremental R&D to reduce the
capital cost and transaction costs associated with existing energy
efficiency technologies, and accelerate existing technologies
along the cost reduction/experience curves. The time lines for
this kind of R&D should be within 3-5 years—eg the T5
lamp, advanced insulation materials and compressed air systems
could significantly improve energy efficiency. Incremental reductions
in capital costs and incremental improvements in the efficiency/quality
of these products would bring them far closer to market.
— Step change R&D to bring forward
pioneering technologies which have potentially a major impact
in the long term. As the time frames for advancing this sort of
technology is much longer—typically 10-20 years—R&D
has to be stimulated now, eg to develop integrated process control
systems for low carbon buildings and new low carbon products.
Examples include: light emitting diodes (LED); control and combustion
technologies for the industrial sector; process intensification;
materials science to stimulate the development of new insulation
materials and processes; and electrochemistry.
5. Total funding provided by government
(excluding the research councils) is summarised below:
| Funding body | 1999-2000
| 2000-01 | 2001-02
| 2002-03 |
| 1. | Carbon Trust | £290,000
| £860,000 | £950,000
| £1,300,000 |
| 2. | Defra approx | ?
| ? | £2,500,000 | £2,500,000
|
| 3. | EST | ~£100,000
| ~£100,000 | ~£100,000
| ~£100,000 |
| 4. | DTI (energy) | ?
| ? | £2,000,000 | £2,000,000
|
| 5. | DTI (construction) | £850,000
| £1,217,000 | £808,000
| £566,000 |
| 6. | ODPM | £250,000
| £250,000 | £250,000
| £250,000 |
| 7. | DfT (NVTF) | —
| — | £3,000,000 |
£3,000,000 |
| 8. | DfES | £455,000
| £455,000 | £455,000
| £455,000 |
| 9. | Env Agency | —
| — | £47,000 | £45,000
|
| Rounded Total |
| | | 10,116,000
|
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6. Working closely with the Carbon and Energy Saving
Trust, Defra will continue to explore the way that we support
the research, design, demonstration and commercialisation of new
technologies in the most cost-effective way.
THE CONTRIBUTION
OF THE
RESEARCH COUNCILS
7. Energy efficiency research is a theme which receives
support under a number of Research Council programmes, through
funding provided by the Office of Science and Technology. Research
Councils investment of £28 million in basic and strategic
research in support of sustainable energy will help to identify
and develop "whole system" solutions to meet 2010 and
longer term targets. This "Towards a Sustainable Energy Economy"
programme builds on ongoing Research Council investments in "blue
skies research" and in related programmes such as SuperGen,
Carbon Vision (in collaboration with the Carbon Trust), the Sustainable
Technologies Initiative and the work of the Tyndall Centre. Details
of Research Council investments and views in respect of energy
efficiency research are being made in a separate submission from
Research Councils UK.
8. Under the TSEC programme the Research Councils have
established the UK Energy Research Centre, with the aim that it
should provide leadership in energy research and assist in giving
coherence and co-ordination to the UK energy research agenda.
As well as undertaking its own programme of whole systems energy
research (including issues of demand reduction), it will draw
together a National Energy Research Network, develop a research
atlas and provide independent advice on energy issues relevant
to policy development."
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