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 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 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 Reduce the carbon intensity of energy supply Improve technical energy efficiency Reduce service demand, avoid waste Low carbon economy Reduced energy demand

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 Renewable Energy Strategy (RES) consultation Target: 15% renewable energy by % electricity from renewables Starting point is to save energy energy efficiency measures up to £45/tCO 2 are more cost effective than additional renewables

UK Energy Efficiency Energy Efficiency Strategy June 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 69MtCO 2 by 2016

UK Energy Efficiency: Households Energy efficiency policies in the household sector Buildings new 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 Carbon Emissions Reduction Target Post 2011 Supplier Obligation Successful, cost-effective approach

UK Energy Efficiency: Households Energy Efficiency Commitment MtCO2 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 MtCO2 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 CO 2 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 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 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 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

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