The Department of Energy and Climate Change is inviting companies and organisations to register their interest in its recently launched Electricity Demand Reduction Pilot.
In June 2013 provisions were introduced into the Energy Bill to allow a financial incentive to encourage lasting reductions in electricity demand. Similar schemes are already in operation in the US.
Since it is still a novel approach, DECC has introduced a pilot scheme to explore whether electricity demand reduction projects could work and also to learn wider lessons about the delivery and design of EDR
Under the pilot, businesses and other organisations that install measures delivering verifiable reductions in electricity demand will be able to bid for a financial incentive.
The pilot will see at least £20m being made available to support projects that deliver “lasting reductions” in electricity demand.
DECC gives the specific example of “the installation of a more efficient lighting system, heating, ventilation and air conditioning system or electric pump”.
Secretary of State for Climate Change Ed Davey said: “We are looking for brilliant organisations with bright ideas about how to lower our electricity use.”
Final pilot rules and guidance will be published in June 2014 and applications will need to be submitted in October 2014. After this, projects will bid into an auction and commit to the delivery of energy savings, the department said.
Successful bids will secure funding, which can then be used to support the installation of more energy-efficient equipment.
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