Auction for £10m energy-saving pot kicks in
The UK Government’s scheme aimed at providing financial support for projects that reduce electricity demand kicked in yesterday.
DECC held an auction for a £10 million pot, giving businesses the chance to bid for a share as part of its Electricity Demand Reduction (EDR) initiative.
The scheme, which supports energy-saving projects such as replacing light bulbs with more efficient LEDs, will test whether organisations can provide lasting electricity savings at times of peak demand – mostly during the winter months.
DECC hopes the projects can eventually compete in the Capacity Market, which offers payments to companies that can offer back-up capacity for the grid by either providing extra electricity or cutting their usage during peak times.
The winning bids will be those that represents best value for money and deliver energy-savings at the lowest cost.
The winners of the auctions are expected to be announced next week.