The document discusses how simplifying the complex UK policy landscape around energy efficiency could help the retail industry reduce energy consumption by 25% by 2020. It notes that energy costs for retail were £3.3 billion in 2013 and are projected to increase to £4.4 billion by 2020 without changes. Harmonizing and streamlining policies could unlock greater investment in energy efficiency measures, saving an estimated £4.1 billion in energy costs and reducing carbon emissions by over 4 million tons by 2020 across the industry.
IIEC ELECTRICAL CONFERENCE 2013:EE implementation-player's perspectiveZAINI ABDUL WAHAB
Key highlights:
Business Potentials In Energy Efficiency Implementation
Success Stories in energy efficiency programs and projects implementation
Barriers & Counter Measures For Sustainable Energy Efficiency Programs Implementation in Malaysia
Energy Efficiency Industry Development & The Way Forward for Malaysia
The ScottMadden Energy Industry Update, the twice-per-year report issued by energy consulting firm ScottMadden. This particular edition takes a close look at the natural gas industry--in particular how ever-increasing gas resources can find adequate infrastructure to make their way to market.
IIEC ELECTRICAL CONFERENCE 2013:EE implementation-player's perspectiveZAINI ABDUL WAHAB
Key highlights:
Business Potentials In Energy Efficiency Implementation
Success Stories in energy efficiency programs and projects implementation
Barriers & Counter Measures For Sustainable Energy Efficiency Programs Implementation in Malaysia
Energy Efficiency Industry Development & The Way Forward for Malaysia
The ScottMadden Energy Industry Update, the twice-per-year report issued by energy consulting firm ScottMadden. This particular edition takes a close look at the natural gas industry--in particular how ever-increasing gas resources can find adequate infrastructure to make their way to market.
From Ugly Duckling to Superstar: how energy efficiency (almost) got to the to...FTI Consulting FR
Energy efficiency has long been promoted at European level. The European Commission has certainly made great efforts to support it and to ensure that energy savings can contribute to the EU’s energy priorities, namely reduction of carbon emissions, lowering of energy costs and increase of energy independence. The EU has introduced energy efficiency targets, created a regulatory framework to support energy efficiency and the uptake of energy efficient products and provided significant funding. However, so far energy efficiency has not lived up to its expectations, which is disappointing considering the huge amount of resources spent to promote it.
In this Energy Flash we look why the EU’s policies have so far have not had the desired effect, what is being done to change this and which sectors are best placed to benefit from the renewed efforts.
Delivering energy sustainability is becoming a focal point for national economies. What are the three most important aspects of energy transition? Read more in our blog!
Assessing the Impact of Tamil Nadu’s Electricity Tariff Policy on TANGEDCO’S ...AurovilleConsulting
Electricity consumption is one of the most telling indicators to assess a nation’s economic development. A financially robust and vibrant electricity sector is pivotal for economic growth and is considered vital for a nation’s overall development. Tamil Nadu is one of the states with free electricity for agriculture and electricity tariffs for several other consumer categories such as domestic, huts, etc., are subsidised by the Government of Tamil Nadu. In addition to the electricity subsidy provided by the Government, the state owned electricity utility, TANGEDCO, cross-subsidises the lower consumer tariffs from higher tariffs revenue. However even with the combination of Government of Tamil Nadu subsidies and cross-subsidies, revenue is significantly lower than costs. In 2015-16 TANGEDCO’s cumulative revenue gap was INR 30,884.15 Crore. This paper presents an analysis of the impact of Tamil Nadu’s electricity policies on the financial performance of TANGEDCO.
Energy-intensive industries – energy efficiency policies and evaluationsLeonardo ENERGY
The webinar will review results from academic evaluations of energy efficiency and climate mitigation policies that have targeted energy-intensive industry on EU and Member State level. The EU emissions trading system, by some portrayed as Europe´s flagship policy to tackle climate change, has had little effect in triggering innovative low-carbon solutions. Other policy approaches taken by Member States have centred on site-level energy management practices linked with national incentives and obligations that stimulates industrial energy efficiency as a strategy aiming at multiple objectives. Remarks are also made about policy design and the role of evaluation to foster policy improvements.
Suggested reading: Stenqvist, C. (2013). Industrial energy efficiency improvement - the role of policy and evaluation. Doctoral dissertation. Lund: Lund University.
Speakers for this webinar: Christian Stenqvist
The IEA Energy Efficiency Market report - What it means for DSMLeonardo ENERGY
The Energy Efficiency Market Report is the IEA’s flagship report on energy efficiency trends around the world.
Questions addressed in this year’s report include: Are we improving energy efficiency fast enough to achieve our climate goals? Which countries and policies are having the greatest impact and what is the secret to their success? How much is being invested in energy efficiency globally, in specific regions and in the main energy-consuming sectors? How are low energy prices impacting energy efficiency investments? What are the multiple benefits of energy efficiency for the climate, energy security and public budgets? What are the market trends for energy efficiency services and financing?
Speaker for this webinar: Tyler Bryant
Evaluating the UK’s Energy Savings Opportunity SchemeLeonardo ENERGY
In 2014, the UK introduced the Energy Savings Opportunity Scheme (ESOS) to implement requirements under the Energy Efficiency Directive. We will present the methodology used in the evaluation and our key findings. We will end with a broader discussion on policies to expand business energy efficiency.
Discussion Paper on the European Commission’s Energy Union - A Union Based on...Leonardo ENERGY
Leonardo Energy welcomes the Commission’s Energy Union document. It sets out a positive perspective and structured view of how the EU’s energy policy should be developed and implemented in a coordinated manner over the coming decades. The vision of the document is laudable as are the diagnoses regarding the overarching necessity of strengthening energy policy coordination across the EU and of building up governance capacity. These are indeed important priorities if the EU is to succeed in meeting its policy goals set for 2020 to 2050.
However, the challenges to achieving the EU’s energy policy objectives should not be understated or glossed over – they are quite profound and will require sustained efforts on a hitherto unprecedented scale to be addressed. In the end it is the detail of how the headline measures set out in the Energy Union document are designed and implemented, which will determine whether the energy policy objectives will be met or not. It is important to build on existing Directives and policy initiatives rather than starting afresh; but this process requires honest appraisal of the successes and limitations of the current initiatives and more fundamentally of the plethora of barriers to the development of the low carbon energy economy. In particular, the temptation to avoid or ignore difficult challenges will need to be resisted in favour of sustained and determined measures. This requires a collective effort by European policymakers at all levels.
slEconomics., Electricity sector tariff reforms in Thailand. Stephen Labson 2014Stephen Labson
Thailand is a signatory to the ambitious blueprint for ASEAN economic integration which is meant to be rolled out during 2015. While the complete implementation of ASEAN Economic Community (AEC) may take longer than originally called for, it remains a motivating factor in domestic and regional policy development.
In the energy sector AEC liberalisation is expected to have a significant impact on the structure of domestic and regional electricity markets, which will in turn have implications for tariff controls pertaining to regulated components of the Thai ESI. Moreover, the competitive dynamics of AEC liberalisation make this an opportune time to refine existing regulatory frameworks and underlying tariff setting mechanisms so as to maintain the competitive position of the Thai ESI and provide customers reliable electricity supply at fair and cost reflective prices.
With the above in mind, during 2014 Thailand’s Ministry of Energy engaged slEconomics Pty Ltd (as part of an international consortium) to review tariff setting mechanisms within the context of AEC liberalisation. This Review summarises the approach utilised in undertaking our analysis and key recommendations as presented to a public forum held in Bangkok 30 June 2014.
Newsletter by E-Cube Energy with focus on India and Energy Efficiency. In this edition we cover an interesting mix of topics from policy issues around PAT Scheme to use of Data Analytics to foster energy efficiency.
“The primary objective of this research was to identify the most significant and immediate needs of large and medium size organizations to adapt to the emerging Carbon economy, with special focus into the energy management activities of the 200 largest energy consumers of Victoria.
On the energy efficiency space the biggest challenge that companies are encountering to reduce energy consumption is to identify, understand and quantify the energy efficiency opportunities, the underlying issue to identify energy efficiency opportunities seems to be in many of the cases the approach taken to deal with the problem. A small group of companies (majority of them above 0.5PJ per annum) have taken a continuous improvement approach to energy management these companies are ahead in number and qualities of efficiency opportunities identified and implemented.”
White certificates in Italy: a brief summaryDario Di Santo
The presentation on the basics of the Italian white certificates scheme held from Dario Di Santo at the EFIEES meeting on the 6th of December in Milano. The illustrated topics are: WhC and the art. 7 of 2012/27/EU directive, Italian targets and mechanism rules, savings assessment, market results, market expectations.
Richard Cowart - Delivering Energy Efficiency on a Large Scale: Challenges an...noe21
http://www.managing-energy-demand.org
This seminar held on november 4 ‘09 in Bern, Switzerland, hosted international specialists in managing energy demand, mainly electric energy. Presentations concentrated on best cases in demand side management and regulation easing the way for DSM programs. The event was organised by noe21, a Geneva based NGO.
Responding to energy efficiency challenge marianne osterkornreeep
Presentation by Dr. Marianne Osterkorn at DoE conference on 3-4th June 2010 in Istanbul, giving an overview of energy efficiency efforts around the world.
How to make sustainability part of your energy strategy - SmartestEnergySmartestEnergy
How to make sustainability part of your energy strategy - presented by James Graham, Head of Direct Sales, at the Energy Management Forum event in Birmingham on 20th May 2015.
From Ugly Duckling to Superstar: how energy efficiency (almost) got to the to...FTI Consulting FR
Energy efficiency has long been promoted at European level. The European Commission has certainly made great efforts to support it and to ensure that energy savings can contribute to the EU’s energy priorities, namely reduction of carbon emissions, lowering of energy costs and increase of energy independence. The EU has introduced energy efficiency targets, created a regulatory framework to support energy efficiency and the uptake of energy efficient products and provided significant funding. However, so far energy efficiency has not lived up to its expectations, which is disappointing considering the huge amount of resources spent to promote it.
In this Energy Flash we look why the EU’s policies have so far have not had the desired effect, what is being done to change this and which sectors are best placed to benefit from the renewed efforts.
Delivering energy sustainability is becoming a focal point for national economies. What are the three most important aspects of energy transition? Read more in our blog!
Assessing the Impact of Tamil Nadu’s Electricity Tariff Policy on TANGEDCO’S ...AurovilleConsulting
Electricity consumption is one of the most telling indicators to assess a nation’s economic development. A financially robust and vibrant electricity sector is pivotal for economic growth and is considered vital for a nation’s overall development. Tamil Nadu is one of the states with free electricity for agriculture and electricity tariffs for several other consumer categories such as domestic, huts, etc., are subsidised by the Government of Tamil Nadu. In addition to the electricity subsidy provided by the Government, the state owned electricity utility, TANGEDCO, cross-subsidises the lower consumer tariffs from higher tariffs revenue. However even with the combination of Government of Tamil Nadu subsidies and cross-subsidies, revenue is significantly lower than costs. In 2015-16 TANGEDCO’s cumulative revenue gap was INR 30,884.15 Crore. This paper presents an analysis of the impact of Tamil Nadu’s electricity policies on the financial performance of TANGEDCO.
Energy-intensive industries – energy efficiency policies and evaluationsLeonardo ENERGY
The webinar will review results from academic evaluations of energy efficiency and climate mitigation policies that have targeted energy-intensive industry on EU and Member State level. The EU emissions trading system, by some portrayed as Europe´s flagship policy to tackle climate change, has had little effect in triggering innovative low-carbon solutions. Other policy approaches taken by Member States have centred on site-level energy management practices linked with national incentives and obligations that stimulates industrial energy efficiency as a strategy aiming at multiple objectives. Remarks are also made about policy design and the role of evaluation to foster policy improvements.
Suggested reading: Stenqvist, C. (2013). Industrial energy efficiency improvement - the role of policy and evaluation. Doctoral dissertation. Lund: Lund University.
Speakers for this webinar: Christian Stenqvist
The IEA Energy Efficiency Market report - What it means for DSMLeonardo ENERGY
The Energy Efficiency Market Report is the IEA’s flagship report on energy efficiency trends around the world.
Questions addressed in this year’s report include: Are we improving energy efficiency fast enough to achieve our climate goals? Which countries and policies are having the greatest impact and what is the secret to their success? How much is being invested in energy efficiency globally, in specific regions and in the main energy-consuming sectors? How are low energy prices impacting energy efficiency investments? What are the multiple benefits of energy efficiency for the climate, energy security and public budgets? What are the market trends for energy efficiency services and financing?
Speaker for this webinar: Tyler Bryant
Evaluating the UK’s Energy Savings Opportunity SchemeLeonardo ENERGY
In 2014, the UK introduced the Energy Savings Opportunity Scheme (ESOS) to implement requirements under the Energy Efficiency Directive. We will present the methodology used in the evaluation and our key findings. We will end with a broader discussion on policies to expand business energy efficiency.
Discussion Paper on the European Commission’s Energy Union - A Union Based on...Leonardo ENERGY
Leonardo Energy welcomes the Commission’s Energy Union document. It sets out a positive perspective and structured view of how the EU’s energy policy should be developed and implemented in a coordinated manner over the coming decades. The vision of the document is laudable as are the diagnoses regarding the overarching necessity of strengthening energy policy coordination across the EU and of building up governance capacity. These are indeed important priorities if the EU is to succeed in meeting its policy goals set for 2020 to 2050.
However, the challenges to achieving the EU’s energy policy objectives should not be understated or glossed over – they are quite profound and will require sustained efforts on a hitherto unprecedented scale to be addressed. In the end it is the detail of how the headline measures set out in the Energy Union document are designed and implemented, which will determine whether the energy policy objectives will be met or not. It is important to build on existing Directives and policy initiatives rather than starting afresh; but this process requires honest appraisal of the successes and limitations of the current initiatives and more fundamentally of the plethora of barriers to the development of the low carbon energy economy. In particular, the temptation to avoid or ignore difficult challenges will need to be resisted in favour of sustained and determined measures. This requires a collective effort by European policymakers at all levels.
slEconomics., Electricity sector tariff reforms in Thailand. Stephen Labson 2014Stephen Labson
Thailand is a signatory to the ambitious blueprint for ASEAN economic integration which is meant to be rolled out during 2015. While the complete implementation of ASEAN Economic Community (AEC) may take longer than originally called for, it remains a motivating factor in domestic and regional policy development.
In the energy sector AEC liberalisation is expected to have a significant impact on the structure of domestic and regional electricity markets, which will in turn have implications for tariff controls pertaining to regulated components of the Thai ESI. Moreover, the competitive dynamics of AEC liberalisation make this an opportune time to refine existing regulatory frameworks and underlying tariff setting mechanisms so as to maintain the competitive position of the Thai ESI and provide customers reliable electricity supply at fair and cost reflective prices.
With the above in mind, during 2014 Thailand’s Ministry of Energy engaged slEconomics Pty Ltd (as part of an international consortium) to review tariff setting mechanisms within the context of AEC liberalisation. This Review summarises the approach utilised in undertaking our analysis and key recommendations as presented to a public forum held in Bangkok 30 June 2014.
Newsletter by E-Cube Energy with focus on India and Energy Efficiency. In this edition we cover an interesting mix of topics from policy issues around PAT Scheme to use of Data Analytics to foster energy efficiency.
“The primary objective of this research was to identify the most significant and immediate needs of large and medium size organizations to adapt to the emerging Carbon economy, with special focus into the energy management activities of the 200 largest energy consumers of Victoria.
On the energy efficiency space the biggest challenge that companies are encountering to reduce energy consumption is to identify, understand and quantify the energy efficiency opportunities, the underlying issue to identify energy efficiency opportunities seems to be in many of the cases the approach taken to deal with the problem. A small group of companies (majority of them above 0.5PJ per annum) have taken a continuous improvement approach to energy management these companies are ahead in number and qualities of efficiency opportunities identified and implemented.”
White certificates in Italy: a brief summaryDario Di Santo
The presentation on the basics of the Italian white certificates scheme held from Dario Di Santo at the EFIEES meeting on the 6th of December in Milano. The illustrated topics are: WhC and the art. 7 of 2012/27/EU directive, Italian targets and mechanism rules, savings assessment, market results, market expectations.
Richard Cowart - Delivering Energy Efficiency on a Large Scale: Challenges an...noe21
http://www.managing-energy-demand.org
This seminar held on november 4 ‘09 in Bern, Switzerland, hosted international specialists in managing energy demand, mainly electric energy. Presentations concentrated on best cases in demand side management and regulation easing the way for DSM programs. The event was organised by noe21, a Geneva based NGO.
Responding to energy efficiency challenge marianne osterkornreeep
Presentation by Dr. Marianne Osterkorn at DoE conference on 3-4th June 2010 in Istanbul, giving an overview of energy efficiency efforts around the world.
How to make sustainability part of your energy strategy - SmartestEnergySmartestEnergy
How to make sustainability part of your energy strategy - presented by James Graham, Head of Direct Sales, at the Energy Management Forum event in Birmingham on 20th May 2015.
This is normally my story line whenever I was asked/requested/invited to share with audience on the way forward for energy efficiency industry in Malaysia when I was I the government trying to push for EE agenda..and my opinions and thoughts are still the same until today and look like for longer time
Poyry - Europe’s energy future – the shape of the beast - Point of ViewPöyry
Decarbonisation requires large scale investment by European energy companies, but threatens their existing revenue streams. Financial investors are becoming wary of the power sector, and new sources of capital are urgently required. Meanwhile, Europe faces a policy dilemma; whether to rely on markets and a strong CO2 regime, or to build national solutions with government-channelled investment. Whichever way this dilemma is
resolved, the traditional role of the electricity companies must adapt: embracing innovation is the first necessary step to the future world.
In this research note we focus on the retail sector and where opportunities lie to help improve environmental and economic productivity.
Explore where retailers and shopping centre owners have the opportunity to half their environmental impact and improve profit performance through a focus on every efficiency
See page 10 for Professor Jillian Anable's contribution on low carbon transport and air quality.
www.ukerc.ac.uk/news/ukerc-calls-for-urgent-action-on-uk-energy-during-this-parliament-.html
Copyright UKERC.
Ambassador Richard H. JonesDeputy Executive Director
International Energy Agency
Eilat-Eilot
International Renewable Energy Conference & Exhibition
February 16-18, 2010
Herods & Dan Hotel, Eilat, Israel
Workshop : business cases for Energy Communities - 30/03/21Cluster TWEED
Last training session of 6 online training sessions for energy communities.
This 6 pack series is organised by TWEED and Flux50, energy clusters in Belgium.
2. 25-in-5: Unlocking energy efficiency through smart regulation
An unprecedented challenge
1
The UK is facing an unprecedented challenge to enable security of supply while
delivering on climate change goals. The retail industry strongly supports these objectives
and has led the way in energy efficiency and investment in low carbon technologies.
There are three key challenges for the UK in its’ future energy supply and market.
Energy efficiency is a vital measure in tackling the energy trilema and underpins
objectives in capacity, consumption and cost. It will also enable the UK economy to
grow sustainably as more investment in energy efficient products and services drives
green growth.
Currently the complex and inaccessible policy landscape is leading to widespread
confusion and disengagement in relation to energy efficiency. As a result there is a
significant lack of confidence in energy efficiency investment creating a major barrier
to our ability to successfully tackle the energy trilema. This has led to a shortfall in
jobs and skills needed to deliver on energy efficiency within the retail industry further
impacting on the retail industry’s ability to deliver enhanced action in energy efficiency.
The energy trilema
Climate Change – Represents one of the most significant challenges being faced
by society today. The ways in which we generate and consume energy plays a
fundamental role in avoiding dangerous climate change and mitigating the impact
of climate change in future generations – Carbon reduction
Energy Security – The UK is facing reductions in capacity due to a lack
of investment in energy infrastructure in the UK. Coupled with an increasing
population this is likely to lead to much more frequent power outages as generation
capacity is outstripped by rising demand – Investment in energy mix diversity
Affordability – Volatility in the energy markets and the need for significant
investment in UK energy infrastructure will mean energy costs continue to rise
for the foreseeable future, placing an increasing burden on retail operational costs
– Energy demand reduction
.
2.
.
3. 25-in-5: Unlocking energy efficiency through smart regulation
The retail industry has long been a leader in energy efficiency and has contributed a
great deal to innovation and investment in energy efficient technologies and solutions.
We aim to harness this experience and knowledge to empower retailers to unlock
enhanced action in energy efficiency with the wider industry.
Since 2005 the BRC has been working with leading retailers on achieving deeper energy
and carbon reductions through enabling enhanced action on energy efficiency. Under
the A Better Retailing Climate initiative BRC members have made significant progress in
reaching key targets on energy efficiency and carbon reduction.
However we know we can do more and following our initial progress under A Better
Retailing Climate, signatories are working towards more ambitious targets for 2020.
Carbon emissions from
stores were reduced
by 33% between 2005 and
2012 accounting for
growth.
Absolute emissions
were reduced by 8%
Carbon emissions from
store deliveries were
reduced by 27% between
2005 and 2012.
33% 27% 8%
Reducing Absolute
carbon emissions from
operations by 25% based
on 2005 levels
Reducing energy
consumption from
buildings by 50% based
on 2005 levels
Reducing transport
emissions from store
deliveries by 45% based
on 2005 levels
25% 50% 45%
What is retail currently doing to
tackle the energy trilema?
2
4. 25-in-5: Unlocking energy efficiency through smart regulation
What are the opportunities from
simplification and harmonisation of
policy?
3
Key Retail Energy Facts
Retail is the second highest energy consuming industry in the UK1
The cost of energy and carbon to retail in 2013 was £3.3bn
Electricity represents 77 per cent of total energy consumption in the retail industry
and 90 per cent of overall energy costs
Lighting in 2013 used 43 per cent of total electricity and is by far the leading
source of energy consumption
Carbon associated with retail energy consumption in 2013 was 16MtCO2e,
representing around a fifth of emissions from all businesses in the UK
•
•
•
•
•
In 2014 the BRC undertook exploratory analysis of energy consumption and costs
to the retail industry and what the current trajectory of energy costs could look like
in 20202
. Using government wholesale energy cost projections and baseline data for
the retail industry energy consumption in 2013 our analysis suggested that costs for
the industry could increase significantly by 2020 to at least £4.4bn. Our initial analysis
showed that a minimum of £4.1bn of cumulative energy and carbon costs to the
industry could be avoided if all retailers in the UK adopted a 25 per cent reduction
in energy consumption by 2020 from 2015. As this analysis only took into account
wholesale energy costs, this benefit will be much higher if other aspects that are
included in energy cost are taken into consideration such as transport, distribution and
transmission costs.
5. 25-in-5: Unlocking energy efficiency through smart regulation
What are the opportunities from simplification and harmonisation of
policy?
Key opportunities from energy efficiency
Increasing the energy efficiency of operations remains the most cost effective way
of reducing energy cost in relation to operating profits and will save significant
amounts in operating costs for the long term
Unlocking energy efficiency would tackle energy and carbon reduction as well as
ensuring the retail industry is economically sustainable for the future
Our initial analysis shows that a minimum of £4.4bn in additional energy spend is
expected in the retail industry over the next five years, demonstrating the scale of
investment in retail energy efficiency that could be unlocked if policy addressing
energy and carbon were harmonised
Smart regulation would generate significant economic growth as well as delivering
huge potential for additional employment in an energy efficiency industry in the
UK and export of expertise on a global market
Enhanced action in energy efficiency would lead to greater stability in the UK
economy as well as helping to protect the UK against future economic downturn
•
•
•
•
•
smart policy supporting energy reduction:
the 25% goal
3,000
3,200
3,400
3,600
3,800
4,000
4,200
4,400
4,600
Baseline 2014 2015 2016 2017 2018 2019 2020
EnergyCosts(£m)
Total Cost BAU (£s) Total Cost 25% reduction (£s)
Our analysis shows that the impact on the retail industry of an increase in energy costs
of this magnitude could be significant and may lead to retailers seeking other ways of
reducing operational costs in order to remain economically viable. Energy efficiency is
therefore not just a vital component in tackling energy security and climate change, but
is also a key driver of economic growth and stability.
6. 25-in-5: Unlocking energy efficiency through smart regulation
what are the challenges?
4
The retail industry faces a number of major blockages to enhanced action on energy
efficiency which slow down deployment of technologies, widens the skills gap and
stifles innovation and investment. By removing these blockages retail could leverage a
much greater level of investment in energy efficiency over the next five years not just
supporting energy and climate change objectives but also contributing to deeper and
more sustained economic growth and delivery of jobs across both the retail industry
and the wider economy.
Smart regulation would enable a much wider understanding of the benefits of
energy efficiency within the retail industry and would leverage much higher levels of
investment. Through simplifying and harmonising policy, government could outline
energy and legislative risks more clearly as well as highlight both the potential financing
models available as well as the clear opportunities presented by energy efficiency.
Key barriers to energy efficiency
The current policy landscape is extremely complex and is not well aligned to
objectives as set out under the Climate Change Act and leads to confusion in
whether to address energy efficiency, carbon reduction or investment in low
carbon technologies and generation
There are a vast number of policies addressing energy reduction and carbon
management, leading to widespread confusion and lack of certainty in low carbon
investments stifling innovation and investment in energy efficiency
Access to finance for energy efficiency is limited and capacity to raise capital
internally is restricted as the opportunities and benefits of energy efficiency are
not well understood as a direct result of the overly complex policy landscape
The complexity of the suite of policies addressing energy and carbon reduction
has led to a fractured approach to energy efficiency, impacting on skills and
development within retailers and disengaging them from the benefits of having
energy management teams within their organisation
The vast set of current reporting requirements under existing and planned policy,
are not aligned damaging the strategic focus and delivery and severely restricting
investment in energy efficiency
•
•
•
•
•
7. 25-in-5: Unlocking energy efficiency through smart regulation
How can we tackle the energy
trilema?
5
The complicated and overlapping policy landscape is the single most difficult barrier
to navigate and overcome in unlocking enhanced action in energy efficiency. The
underlying goal of the energy and carbon policy should be to broaden energy efficiency
out from the specialist areas of an organisation and place them in the hands of board
members and key decision makers.
It is vital that policy is harmonised in order to enable a wider level of accessibility and
to simplify often complex policy measures whilst at the same enabling a clearer and
confident platform on which to base investment decisions. Significant levels of finance
are being absorbed to satisfy a vast suite of policies and compliance requirements when
they could be put to better use through investing in energy efficient and low carbon
technologies.
Key areas of policy harmonisation
A complex policy landscape has a resulting impact on the credibility and reliability
of long term decisions and leads to higher risks in investment in energy efficiency
as well as further fragmentation of future policy objectives
The misalignment of reporting principles and routes within current policies
leads to largely onerous and overly complex reporting processes which leads to
confusion and a lack of confidence in consumption and emission figures
In order to create a coherent investment environment, which enables us to reach
our energy and carbon targets, policy needs to be stable and robust for the long-
term and deliver simplicity in order to ensure the message is consistent
Policy simplification will not require substantial changes in existing or planned
legislation but could deliver benefits through aligning reporting principles across
policy to deliver certainty in reporting and in better communication of and
accessibility to incentive mechanisms aimed at unlocking energy efficiency
This approach could help to reduce the skills gap and accelerate understanding
and enhanced investment in energy and carbon reduction technologies
•
•
•
•
•
8. 25-in-5: Unlocking energy efficiency through smart regulation
What will the BRC do to help
retailers?
6
The BRC will help retailers of all sizes reduce energy consumption from within their
business, saving them costs and helping them to make their contribution to improving
energy security and our environment. The BRC will provide retailers with a package
of information and toolkits that will help them achieve a 25 per cent increase in energy
efficiency within their operations.
As part of the 25 in 5 vision the BRC pledges to
Provide an online energy hub for energy efficiency advice for retailers of all sizes
to help them reduce their energy consumption and to provide sharing of best
practice and experience in retail energy efficiency
Outline the business case for energy efficiency within the retail industry, enabling
the wider industry to understand the opportunities for cost reduction through
energy efficiency and the impact on their business of future energy costs increases
Provide toolkits and guidance sourced from leading retailers in energy efficiency
that will enable the wider industry to understand their energy consumption and
make their first steps in managing their energy consumption and associated energy
costs
Develop a suite of clear and easy to understand case studies that demonstrate
low cost and often revenue neutral approaches to energy efficiency within retail
operations
Highlight the key technologies on the pathway to reducing energy consumption
and building resilience to increasing energy prices
•
•
•
•
•
9. 25-in-5: Unlocking energy efficiency through smart regulation
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/277021/20140204_2012_UK_Greenhouse_Gas_Emissions_
Final_Figures.pdf
https://www.gov.uk/government/publications/updated-energy-and-emissions-projections-2014
1.
2.
Working together to tackle the
energy trilema
7
We share the government’s objectives in climate mitigation and energy security and
believe there are significant benefits in adopting a harmonised approach.
To support this, we will continue to work with
government to
Raise awareness of the opportunities and benefits that exist in reducing energy
consumption and spend through adopting effective energy efficiency approaches
Work in collaboration with government on policy simplification and harmonisation
to enable a greater level of accessibility to the wider sector and to ensure a stable
and long term platform on which to deliver energy reduction
Support smart regulation through the alignment of policy objectives and reporting
protocols enabling more agile and cost effective compliance while also unlocking
investment in energy efficiency
Deliver a long term story for energy efficiency for the UK, supporting the
development of an energy efficiency industry for the UK to enable growth in
employment and the wider economy
•
•
•
•
further information
For further information, please contact:
Andrew Bolitho
Policy Advisor - Energy
BRC
andrew.bolitho@brc.org.uk
or visit www.brc.org.uk/retail-energy
10. Energy in Retail
Energy costs set
to significantly
increase by 2020
£3.3bn
77%
of total energy
consumed in
2013
Electricity
accounted for
Retail
emmitted
from energy
use in 2013
- nearly a
fifth of all
UK carbon
emissions
16MtCO2e
A 25% reduction in energy across the retail industry could:
by 2020
£
£4.1bn
Avoid additional
costs of
Reduce emitted
carbon by over
4MtCO2e
Reduce energy
consumption by
10,400GWh
Ener
gy costs in
2013
£3.3bn
2ndhighest energy
consuming
industry in the
UK
43%
of all
electricity
use is for
lighting
£4.4bn