Isra-Mart srl: Does the UK need an energy saving feed-in tariff?

www.isramart.com

The government has been urged to give subsidies to businesses and households adopting electricity efficiency measures after a new report found that greater competition between energy savers and generators could save £35bn by 2025.

The study, published today by think tank Green Alliance, argues that DECC's electricty market reforms should include an efficiency feed-in-tarriff (FiT), to boost the uptake of energy-saving measures such as insulation and demand management.

It warns the government is unlikely to achieve its target of reducing electricity demand by 16 per cent, so will require new generation capacity by 2025 costing £70bn, such as six new nuclear or carbon capture and storage plants, or around 5,000 large offshore wind turbines.

In contrast it predicts that a new efficiency FiT could boost the market for energy saving, eliminating the need for a spend of £35bn on new capacity.

Report author Dustin Benton urged the government to boost its investment in energy-saving measures.

"The electricity market is a one-way street: there are big incentives to produce more power, and very few to save energy," he said. "This means we spend more on energy than we need to.

"Getting a low cost, low carbon transition means paying for energy saving, and creating new competition between power producers and energy savers."