Press release

Reducing energy demand & encouraging Scottish renewables

This news article was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

Edward Davey sets out how businesses & other organisations could receive financial incentives for reducing the amount of electricity they use.

Energy and Climate Change Secretary Edward Davey today set out how businesses and other organisations could receive financial incentives for reducing the amount of electricity they use through a new pilot worth at least £20 million; and a proposed tailored strike price to help unlock the Scottish Islands massive renewable energy potential as cost effectively as possible.

Edward Davey has today confirmed that:

  • British businesses and other organisations could receive financial incentives for reducing the amount of electricity they use under a new pilot worth at least £20 million. The new pilot will examine how businesses, and other organisations such as charities, that install measures like more efficient motors, air conditioning and lighting could receive financial incentives for the reduced amount of electricity they use.

  • The Government proposes to set the strike price at £115 per MW/h for onshore wind developments on the Scottish Islands of Orkney, Shetland, and the Western Isles, reflecting their unique circumstances and potential. Higher strike prices would not be value for money for Scottish consumers or those across the rest of the UK. A consultation on strike prices will last for six weeks.

Notes for editors:

  1. Electricity Demand Reduction (EDR) can provide a number of benefits – cost-effective energy efficiency measures can reduce energy bills for companies and this can translate into financial savings and increased productivity. Under a new pilot worth at least £20 million, an auction will be set up where organisations based in Great Britain can bid using the electricity savings they can offer and the price they are willing to accept to deliver these savings.

  2. The EDR pilot is expected to open for bids in summer 2014 and to run for around two years. It is anticipated that the pilot will be open to a wide range of efficiency measures that can demonstrate they can deliver reductions in electricity demand.

  3. A consultation on strike prices will last for onshore wind developments on the Scottish Islands of Orkney, Shetland, and the Western Isles will last for six weeks.

  4. The proposed strike price of £115 per MWh for island onshore wind projects for the first delivery plan will bring on a significant amount of cost-effective generation in the Scottish Islands – 400 MW of capacity by 2020, generating 1.5 TWh/year of clean, green electricity. Subject to consultation, the island-specific strike price will be included in the first EMR delivery Plan to be finalised in December 2013.