Memorandum submitted by the British Electrotechnical
and Allied Manufacturers Association (BEAMA)
BEAMA
1. BEAMA represents over 350 companies
in the Electrotechnical Industries in the UK who employ over 137,000 people
and have a combined annual turnover of more than £13 billion.
Our members provide building and infrastructure technologies and
products that influence all generation efficiencies, electricity
use and system energy losses as well as related UK carbon emissions
and carbon abatement technologies.
2. BEAMA welcomes the opportunity to submit
evidence to the Energy and Climate Change Committee inquiry into
Low Carbon Technologies in a Green Economy, and looks forward
to further engaging with the Committee on this Inquiry as it progresses.
BEAMA is available to provide supplementary written evidence to
the Committee, and would welcome the opportunity to provide oral
evidence in due course.
EXECUTIVE SUMMARY
3. BEAMA believes that significant opportunity
exists for the creation of a "green new deal" in the
UK through existing technologies, provided that the right framework
is put in place. For example, the use of BEAMA members' products
has the potential to lead to an almost 6% reduction in overall
UK primary energy demand.
4. Some of the technologies that have the
biggest potential for delivering a low carbon economy are smart
metering systems, advanced heating controls, Building Automation
Systems (BACS) and lighting controls.
5. For the Government's climate change-driven
policies to be successfully implemented, it is vital that business
accepts that it will benefit overall from investment in the development
of energy efficient low carbon technologies. Accordingly, it is
our intention for the electrotechnical sector to take a proactive
approach to fully understand the opportunities and deliver the
solutions that will help Government meet its ambitious targets.
6. For its part, Government should recognise
that energy and carbon emission reductions will only come about
through manufacturers achieving profitability by developing, testing
and marketing new energy saving products. BEAMA would like to
see Government fully support the development and deployment of
promising technologies and, furthermore, BEAMA believes that the
Government must regard the industry as partners, not as opposition.
7. A key area in which BEAMA believes Government
and industry need to work in closer partnership is overcoming
the lack of consumer awareness about the energy saving products
available on the marketplace and the often simple steps that need
to be taken to deliver efficiency savings.
8. BEAMA welcomes the Government's commitment
to making the UK the world's foremost destination for low carbon
investment. We believe that Government can help to ensure this
by making long-term policy decisions and announcements that will
enable industry to bring the most appropriate products to market.
9. Good recent examples of long term policy
decisions include the long-term commitment to building zero carbon
homes by 2016, the phasing out of incandescent lamps by 2011 and
the three year advance notice of the switch to condensing boiler
installations in 2005. Long-term policy decisions provide a context
for specific sectors of the market to recognise why they need
to change and to work with their suppliers to identify the right
solutions.
10. In addition, enhanced skills and training
are key to the UK becoming one of the world's foremost destinations
for low carbon investment. BEAMA would specifically recommend
Government skills policy focuses on involvement with and encouragement
for industry training initiatives, further analysis of skills
and training needs, and an improved understanding of the training
road map.
11. Public procurement is an opportunistic
area to set more rigorous standards much earlier. The benefits
of this are to establish the credibility and performance of "new"
technologies, to drive a focus on lifetime costing approaches
rather than just capital cost, and to ensure that the public sector
is setting the right example.
12. BEAMA believes it is vital that the
current downturn in market conditions does not lead the Government
to lose sight of the fact that products and technologies that
can provide the biggest reductions in carbon emissions will almost
certainly come from existing, established industries. These industries
will form the backbone of a thriving green industry for the future.
13. This paper provides details of BEAMA's
position and its response to the terms of reference for the Energy
and Climate Change Committee Inquiry into Low Carbon Technologies
in a Green Economy
ANSWERS TO
INQUIRY QUESTIONS
(a) What opportunities exist for the
creation of a green new deal whilst pursuing a low carbon economy?
Which technologies have the biggest potential? Has the Government
done enough in its stimulus package?
14. There are significant immediate opportunities
through existing technologies for the creation of a "green
new deal" whilst pursuing a low carbon economy and improving
energy efficiency in the UK—if the right framework is in
place. For example, currently only 20% of the primary energy used
to deliver electricity to our homes and businesses is used to
perform the required electrical tasks—the rest is wasted.
15. Research suggests that BEAMA members'
products could cut the combined losses from transmission, distribution
and inefficient end-use by 30%. This equates to almost 6% reduction
in overall UK primary energy demand.
16. There are several ways in which BEAMA
members' products can be used to reduce energy usage:
— By helping energy end-users change behaviour;
— Through early replacement of equipment
in existing buildings and networks with more efficient technologies;
— By future proofing new builds and installations
in terms of lifetime energy usage;
— By driving improvements in industrial
energy use.
17. There are many products and systems
that contribute to the 30% figure above. Some of the technologies
with the biggest potential are outlined below:
— Smart metering systems for electricity,
gas and water ultilities deliver significant energy reductions.
They achieve this by providing information for consumers, by automatically
controlling equipment, and by facilitating demand response techniques.
Conservative carbon reductions of 5-10% are reported from world
examples.
— Advanced heating controls are available
for use with all gas heating systems. Independent evidence shows
that savings of 6% are achieved compared with traditional well-controlled
systems. Significantly higher savings can be achieved by upgrading
all systems to minimum levels of control (10-20%).
— Building Automation Systems (BACS) in
commercial buildings can save up to 20% of Heating Ventilating
& Air Conditioning (HVAC) consumption. Actual efficiency figures
depend upon site-specific factors and installation and maintenance.
Lighting controls using constant dimming and occupancy & time
switching for commercial and domestic buildings. Energy use reductions
vary, but robust evidence shows on average 20%-30% reductions
in lighting usage.
— Lighting controls using constant dimming
and occupancy & time switching for commercial and domestic
buildings. Energy use reductions vary, but robust evidence shows
on average 20%-30% reductions in lighting usage.
18. BEAMA would be happy to provide the
Committee with further oral or written evidence of examples of
technologies that can contribute to the pursuit of a low carbon
economy.
(b) How realistic are the Committee
on Climate Change's projections for the use of different types
of new technologies? What is needed to achieve the development
and deployment of them?
19. The only way that many Climate Change
driven policies can be successfully implemented is by business
accepting that they will benefit overall from investment in the
development of energy efficient low carbon technologies. Government
should accept that energy and carbon emission reductions will
only come about through manufacturers achieving profitability
by developing, testing and marketing new energy saving products
that reduce carbon.
20. BEAMA would like to see Government fully
support the development and deployment of promising technologies,
as only with consistent, long-term Government goodwill, political
support and appropriate funding will these new technologies become
mainstream and deliver the necessary low carbon future. BEAMA
believes that Government must encourage manufacturers through
simplifying the "proofing" process, tax breaks and other
incentives, and with clear funding streams that will allow evaluation
and development of such new technologies. Funding should also
provide for results to be used for national calculation models
linked to broader policies such as Energy Performance Certificates,
CERT/Supplier Obligation and Building Regulations.
(c) What are the most important drivers,
nationally and internationally, for a low carbon economy in the
UK? To what extent do the outcomes of the international negotiations
at Copenhagen matter?
21. On a national level, BEAMA believes
that in order to deliver a low carbon economy the Government and
its agents must regard the industry, including BEAMA electrotechnical
sector members, as partners; not as the opposition. To achieve
this, BEAMA believes agreed targets, plus timetables for market
and product transformation must be developed in unison to enable
low carbon solutions to be delivered without disruption for manufacturers,
their clients and consumers.
22. A key driver of a low carbon economy
is the choices made by consumers. One of the overriding barriers
to energy efficiency savings is a lack of consumer awareness about
the products available on the marketplace and the often simple
steps that need to be taken to deliver efficiency savings. BEAMA
believes that Government and industry need to work in closer partnership
to overcome this lack of awareness and need to emphasise how energy
efficiency savings can be made to consumers.
(d) How important is it to the UK economy
that it becomes a leading developer and exporter of low carbon
technologies? What Government policy needs to be in place to do
this?
23. In October 2008, BEAMA published its
white paper on climate change—"An Industry Response."
We recognise that the Government's move towards a low carbon economy
is a fundamental shift and means that a greater focus on products
and services that reduce carbon emissions is the new market reality
for our members. It is our intention for our sector to take a
proactive approach in this respect and to fully understand the
opportunities and deliver the solutions that will help Government
meet its ambitious carbon targets.
24. BEAMA represents over 350 companies
in the UK who employ over 137,000 people and have a combined
annual turnover of more than £13 billion. We therefore
believe that ensuring the continued vibrancy of the UK electrotechnical
manufacturing industry is vital to the future prosperity of the
UK economy.
25. BEAMA welcomes the Government's commitment
to making the UK the world's foremost destination for low carbon
investment and believes there are a number of initiatives the
Government can take to help secure the UK's position.
26. Long term policy: A key requirement
for all businesses is stability and certainty and a stable regulatory
environment is essential to enable industry to bring the most
appropriate products to market. If the Government can deliver
this through making long term policy decisions and announcements,
they will greatly assist in making the UK an attractive place
for business investment. Good recent examples of long term policy
decisions include the long-term commitment to building zero carbon
homes by 2016, the phasing out of incandescent lamps by 2011 and
the three year advance notice of the switch to condensing boiler
installations in 2005.
27. Industry needs Government to help them
plan forward product development strategies—more long term
policy announcements like the above should play a key role in
helping make the UK the world's foremost destination for low carbon
investment.
28. Skills and Training Policy: Enhanced
skills and training are key to the UK becoming one of the world's
foremost destinations for low carbon investment. Looking ahead,
product designers will have a more open brief, less tied to existing
materials and current manufacturing techniques. By definition,
therefore, operations will need to be much more flexible, and
new processes and materials will require workforce skill training
at a time when apprenticeships and on-the-job training are at
a low ebb.
29. BEAMA would specifically recommend Government
skills policy focused on the following:
— Involvement with and encouragement for
industry training initiatives.
— Analysis of skills and training needs.
— Understanding of the training road map.
30. UK success stories: Industry can support
Government by highlighting specific success stories and the benefits
of investing in the UK. Making it clear that the UK Government
and UK based industry are working together to deliver carbon savings
with significant success, should encourage investors to view the
UK as the low carbon investment destination.
(e) Are we seeing impacts of a downturn
on demand and investment in low carbon technologies? If so, how
can this be addressed given the need to meet long term targets?
What obstacles to investment are there?
31. There is definitely a downturn in market
conditions at the present time and this can impact negatively
on lower carbon technologies if they require a greater upfront
investment or for technologies to be retrofitted.
32. What is important is that Government
doesn't lose sight of the fact that products and technologies
that can provide the biggest reductions in carbon emissions will
almost certainly come from existing, established industries. These
industries may also produce a range of technologies to meet customer
demands and not all of these will currently be the lowest carbon
solution. However, these industries will form the backbone of
a thriving green industry for the future. It is important that
support for "green industry" is focussed on supporting
the products that can deliver, and those who manufacture them,
and does not just target "green start-ups" and renewable
technologies. The path to a low carbon future will require existing
industry and markets to develop over time and any interventions
should aim to push this along in the right direction—not
to try to create an alternative.
(f) What is the potential role for
public procurement and policies such as the 2016 zero carbon
homes target in driving investment, development and job creation?
33. We have mentioned above the benefit
of the zero carbon homes policy in setting a long term framework.
Importantly, it provides a context for specific sectors of the
market (particularly housebuilders) to recognise why they need
to change and to work with their suppliers to identify the right
solutions. Similar legislative frameworks for existing buildings
and infrastructure etc. would provide the right context for change
in those market sectors.
34. Public procurement is an opportunistic
area to set more rigorous standards much earlier. The benefits
of this are to establish the credibility and performance of "new"
technologies, to drive a focus on lifetime costing approaches
rather than just capital cost, and to ensure that the public sector
is setting the right example.
May 2009
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