Transcript HESpresentationToCIC010309

Heat and Energy Saving
02 March 2009
John Russell
[email protected]
Policy Objectives
• Help people to reduce energy bills over the long
term
• Mitigating Climate Change
• Secure and Diverse Energy Supplies
• Maximising Economic Opportunities
There are three components to the
policy challenge
70% of the 2050 housing stock is already built. To meet our target of an 80%
cut we will need ensure emissions from households are approaching zero
Households
Continued pressure on fuel bills for all households with particular effects on
the poorest: need both to deliver carbon budgets and tackle fuel poverty
Current policies (EEC/CERT) have delivered much but need for a step change
in provision of energy saving and heating measures
People may be more motivated to act in concert with their friends
Communities
and neighbours. Some local authorities have shown that co-ordinated local
action is effective; and some measures, such as district heating, need to be
installed at community level
We have a clear policy framework to drive energy efficiency in large
Large Scale
businesses – EU ETS, Climate Change Agreements, Carbon Reduction
Heat & CHP
Commitment.
For SMEs our information base is very limited – we hope to use the energy
savings consultation to build our understanding
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Households
Energy
inefficient
house
What is the challenge?
•By 2050 we need to have reduced carbon emissions from households to a
minimal level. On the way to this, we could aim to have completed all of the
cost-effective heat and insulation measures by 2030
•By 2015 we should have completed all of the loft and cavity wall
insulation that is practicable
What will be needed to deliver this?
Energy efficient
house with
renewables/low
carbon heating
•Different houses will need different measures to help them save energy and
reduce their bills
•Newer houses require simple insulation (cavity wall and loft) and then the
offer of renewable heating technology – such as solar panels to heat their
water - as well as smart meters
•Older houses (especially the c35% built before WWII) will need more radical
insulation changes as well as renewable heat or access to low carbon heat
such as connection to heat networks
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Consultation vision
All homes received whole house treatment by 2030 with 7 million
offered by 2020
– Comprehensive co-ordinated advice service which considers the
options for whole house including insulation, heating and micro
generation.
– New financial support for substantial heat and energy saving
improvements with payments linked to house rather than person and
costs offset by energy bill savings.
– Consideration of whether a new delivery model is needed to allow more
coordinated approach to rolling out improvements house-by-house and
street-by-street.
– Consideration of whether ambitious targets require more direction
through regulation in the future.
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The benefits
Financial savings
– comprehensive insulation can save £430 per year
– Solar water heating can save £130-£300 per year
Carbon Savings
– Up to 44 MtCO2 in 2020
– Equivalent to 30% reduction in emissions from households
compared to 2006
Economic benefits
– 34,000 jobs installing and maintaining whole house packages
Demand reduction
– Gas demand could fall by 12% by 2020
Our policies will have to consider bills and
carbon emissions – and these impacts are related
Impact on bills
Impact on emissions
Improving homes reduces
bills for those households
Energy efficiency
and heat are
But the cost of installing
measures increases prices
for those who do not take
action
These are linked:
essential to
Trade-off between
meeting carbon
prioritising efficient
budgets
carbon cuts or
achieving a
particular
distribution of
benefits
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Opportunities for construction
industry
• Major retrofit programme will involve substantial
building work e.g solid wall insulation.
• New financial support to encourage
householder action.
• Need to up-skill trades to carry out energy
saving and heating improvement at same time
as other work.
• Need to build capacity overall to meet greater
challenge and work with any new delivery
models.
Next steps
•
Heat and Energy Savings Strategy consultation –closes on 8 May
2009. Download from DECC website.
•
Targeted consumer and stakeholder engagement programme
Household sector, SMEs; Public Estate; Industry and Local
Government
•
Final policy package later this year – taking account of EU
Renewable Energy Target; Carbon Budgets and UK emissions
reduction targets
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