Reducing demand for energy from industry, businesses and the public sector

In June 2013, the Government introduced provisions into the Energy Act 2013 so that a financial incentive to encourage lasting reductions in electricity demand could be delivered through the Capacity Market. There is to be a pilot scheme run to explore whether electricity demand reduction could participate in the Capacity Market in Great Britain and also to learn wider lessons about the delivery and design of EDR schemes. Under the pilot, businesses and other organisations that install measures that deliver verifiable reductions in electricity demand will be able to bid for a financial incentive.  More efficient motors, air conditioning and lighting are examples of the kinds of measures that could receive support. The pilot will be backed with at least £20million of funding and will be launched in June 2014, when final rules and guidance about the pilot will be published. For more information, click here or contact edr-project@decc.gsi.gov.uk. Click here to download a factsheet.