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.