Government is asking for views on how to support energy efficiency as a contributor to an efficient energy system alongside generation, DSR and energy storage.
Looking at how the market for energy efficieny can be stimulated, the Department for Business, Energy and Industrial Strategy is particualrly interested to hear ideas on how energy efficiency can contribute to a flexible, resilient energy system alongside generation, demand side response and storage technologies.
Barriers to embedding energy efficiency into a cohesive energy system and flexibility strategy include high transaction costs and the difficulty of measurement and verification (M&V) of energy efficiency in real time.
Key areas where government is keen to receive stakeholder feedback include:
- How can energy efficiency be combined with flexibility to provide good market outcomes?
- How can government create new markets for energy efficiency?
- What can we learn from other countries? In particular, government notes the success of energy efficiency markets in the United States of America and Germany as well as an energy efficiency obligation placed on energy suppliers in France.
This Call for Evidence has been issued following the publication of a final evaluation on the Electricity Demand Reduction pilot scheme which concluded that energy efficiency is not ideally suited to participation in the Capacity Market and that we should instead look to other methods of funding or supporting energy efficiency projects.
More information on this can be found in ICON’s weekly policy review, downloadable from the ICON hub