Government mulls energy efficiency auction scheme


Government is considering how to design an auction-based approach to energy efficiency.

The department for business, energy and industrial strategy (Beis) hopes to increase uptake of energy efficiency measures by the UK’s 5 million small and medium sized enterprises (SMEs).

Beis is also mulling whether to implement a business energy efficiency obligation, or Business Eco, which would require suppliers – and potentially networks or generators – to hit targets for delivering certain measures.

A third option is to create an Esco ‘pay as you save’ model that SMEs can access, whereby third parties fund installation of energy efficient measures – such as LED lighting or higher efficiency boilers or renewable heat – and the capital is paid off via the resulting energy bill savings.

A call for evidence launched today seeks views on the plans and ideas for other potential approaches to boost take-up of energy efficiency by SMEs.

See detail here.

Meanwhile, the government has also launched a £6m ‘Boosting Access for SMEs to Energy Efficiency’ (BASEE) competition. It will provide funding for parties that can help reduce transaction costs and encourage uptake of SME energy efficiency building retrofits.

See details here.

Related stories:

Energy efficiency driving UK’s low carbon economy, renewable heat rises

How to balance the grid using energy efficiency as a tradeable resource

Khan puts energy efficiency at heart of London plan

Energy fund raises £100m via IPO

Local authorities plan £100m energy fund

Prepare for impact: How IFRS 16 will affect energy performance contracts

Enforce energy efficiency and make decent EPCs mandatory, big firms tell government

Bring public sector into Esos and hold directors to account

Investor confidence project seeks heat network and street lighting projects

MEEF: £500m more beef for energy efficiency funding

£185m available for SME energy efficiency projects

Dead money: use dormant bank accounts to help councils fund clean energy, MPs urge

Standardisation the key to growing energy efficiency money markets

Electrifying heat: too expensive or too little ambition?

Eon boss: Renewable power is ‘done’, now for heat and transport

Decarbonising heat: free report

Click here to see if you qualify for a free subscription to the print magazine, or to renew.

Follow us at @EnergystMedia. For regular bulletins, sign up for the free newsletter.


Please enter your comment!
Please enter your name here