Memorandum submitted by the Energy Saving
Trust
The Energy Saving Trust is pleased to respond
to the Environmental Audit Committee's "Keeping the lights
on" inquiry. Our response focuses on the relevant areas of
the Energy Saving Trust's expertise and we do not attempt to answer
questions outside of our area of expertise which includes large
scale power generation.
In particular, we would like to draw the Committee's
attention to the study and analysis of the potential for microgeneration
in the UK that DTI has recently commissioned the Energy Saving
Trust and its partners to undertake. This study will provide more
informative and relevant information in relation to the relative
costs and operating efficiencies of microgeneration technologies
that we can currently do. As such, in this instance we do not
attempt to address those issues raised by the inquiry that will
be covered by the study. We therefore suggest that the Committee
requests a copy of the report from Defra when it is finalised
in October.
INTRODUCING THE
ENERGY SAVING
TRUST
The Energy Saving Trust was established as part
of the Government's action plan in response to the 1992 Earth
Summit in Rio de Janeiro, which addressed worldwide concerns on
sustainable development issues. We are the UK's leading organisation
working through partnerships towards the sustainable and efficient
use of energy by households, communities and the road transport
sector and one of the key delivery agents for the Government's
climate change objectives. Our response focuses on the key areas
of the Energy Saving Trust's activities and related issues that
are relevant to the inquiry. We do not attempt to answer questions
outside of our area of expertise including those related to large
scale power generation. Please note that this response should
not be taken as representing the views of individual Energy Saving
Trust members.
ROLE OF
ENERGY EFFICIENCY
The Energy Saving Trust believes that the priority
focus in meeting future electricity demand requirements in a secure,
efficient and environmentally friendly manner must be to reduce
the level of demand in the first place. Demand side activity can
be implemented far quicker than changes in the supply side and
will deliver carbon reductions with lower levels of low carbon
supply. Energy efficiency clearly helps improve security of supply
by reducing the demand for primary energy and hence the level
of dependency on energy imports. It also provides the most favourable
low carbon solution when taking into account embodied energy.
Investment in improvements in UK households
has doubled energy efficiency since 1970. These changes have reduced
carbon emissions by 28MtC per annum whilst saving consumers £10billion
every year. This is three times the saving from the whole nuclear
industry and almost as much as the emissions of the UK's fleet
of coal fired power stations.
The Energy Saving Trust estimates that the achievable
annual potential for household carbon savings is 16MtC through
existing technologies and excluding solid wall insulation. This
equates to 36%[28]
of household energy use. One of the emerging conclusions of the
joint Defra/HM Treasury Energy Efficiency Innovation Review is
that "significant [energy efficiency] cost-effective savings
remain in every sector, even when other hidden costs are taken
into account"[29].
It is imperative that the UK not only continues
its focus on energy efficiency as the key delivery agent for its
short term carbon reductions but also raises its commitment by
strengthening existing measures and introducing new policies for
both now and the longer term. We would be pleased to provide details
of the potential energy efficiency opportunities available to
Government in the household sector.
ROLE OF
MICROGENERATION
Microgeneration offers a number of benefits
over larger scale technologies including reduced transmission
and distribution network losses, enhanced security of supply through
fuel diversity and reduced dependence on a small number of generators.
Renewable microgeneration technologies can also help mitigate
fuel poverty in hard to treat homes, such as solid wall properties,
and in off-gas network areas. Microgeneration, in common with
energy efficiency, will also address heat as well as power unlike
nuclear and most large scale renewable technologies. Combined
and power in general is clearly more efficient than the production
of heat and power from separate sources, which is particularly
relevant in relation to gas supply. We note that DTI32[30]
now considers micro generation as "the production of heat
and/or electricity on a small-scale[31]
from a low carbon[32]
source".
Indications are that the development of microgeneration
technologies will also help improve the level of engagement with
consumers on climate change issues in general. In the case of
renewables, microgeneration this could help increase acceptance
of larger renewable generation projects. The implementation of
microgeneration solutions will also help facilitate a holistic
approach to carbon reduction in the household sector by allowing
the implementation of energy efficiency measures at the same time.
This is clearly not possible with large scale generation solution
which will not help improve engagement with consumers.
It is for these reasons that we advocate microgeneration
must be allowed to play a major role in UK energy and climate
change policy objectives and an appropriate policy framework should
be developed accordingly.
The Inquiry may also be interested in the recent
Energy Saving Trust discussion document "Delivering the Government's
2020 vision for local energy generation" (Appendix 1). This
outlines our views on the major cost, information and technical
constraints preventing the early deployment of a market for microgeneration
(renewable and non-renewable) and the mass market transformation
actions required if the UK is to meet its climate change targets.
We would be pleased to provide further details of the policy framework
that we believe is required to stimulate the development and mainstreaming
of microgeneration solutions.
DTI STUDY AND
ANALYSIS OF
THE POTENTIAL
FOR MICROGENERATION
IN THE
UK
DTI has recently commissioned the Energy Saving
Trust in partnership with Element Energy Ltd, Econnect Ltd and
the Faculty of Economics (University of Cambridge) to undertake
a study and analysis of the potential for microgeneration in the
UK. We believe that the final report, which is due to be delivered
to DTI in October, will be of particular interest to the Inquiry.
The report will provide the most informative and relevant information
in relation to the relative costs and operating efficiencies of
microgeneration technologies. We suggest that in this instance
this report will be more helpful than the evidence that we could
currently submit. The Committee may therefore like to request
a copy of the report from DTI.
20 September 2005
http://www.dti.gov.uk/energy/sepn/eeir—background.pdf
28 Based on domestic energy consumption reported in
the Digest of UK Energy Statistics 2005. Back
29
Background paper for the Sustainable Energy Policy Advisory Board-07/06/05 Back
30
Micro-generation strategy consultation June 2005. Back
31
small-scale in this instance refers to homes and small commercial
developments/public sector buildings. Back
32
low carbon refers to either renewable energy generators or technologies
with better fuel efficiency than conventional technologies. Back
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