UK Energy Efficiency

Chris Leigh

Household Energy Efficiency and Fuel Poverty

Climate Change Group

DECC

Overview of Government’s low carbon household policy

• Why we prioritise energy efficiency• What we do on energy efficiency• Home Energy Saving Programme – CERT, CESP• What the future holds

UK Energy Efficiency

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

UK Energy Efficiency: Strategy

UK Energy Efficiency: Strategy

Climate Change Committee

• 80% reduction in greenhouse gas

emissions by 2050

Carbon Budgets for first three periods

• Intended budgets require greenhouse

gas emissions reduction of 42% in

2020 relative to 1990 levels

• 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 StrategyJune 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

• Buildingsnew 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 low-carbon 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 -08Carbon 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

• The Energy Saving Trust

• Labelling

• Energy Performance Certificates for Buildings

• Smart Metering

• Carbon calculator >1m users

• Communication Campaigns – Act on CO2 advice line

UK Energy Efficiency: What next?

For the future…

• There is lots more we can do on energy efficiency

• Renewable strategy improves the economic attractiveness of certain

measures

• Consulting shortly on CERT +20% and CESP

• Consulting shortly on energy efficiency, focussing on action in the longer

term through to 2020. Major contribution to carbon budgets

• Will deliver a new Heat and Energy Saving Strategy in 2009

• Will deliver a new low carbon homes strategy in 2009

UK Energy Efficiency

THANK YOU

www.decc.gov.ukwww.defra.gov.uk