The UK Coalition’s policies will not be sufficient to achieve the electricity demand savings that are possible over the next twenty years, warns a draft report.

In the report commissioned by the government, Capturing the full electricity efficiency potential of the UK, McKinsey calculate that only around a third of the possible efficiency savings to electricity demand will be achieved through existing policies.

But electricity demand is projected to rise over 400 TWh by 2030 with the electrification of vehicles and heating like to add a further 5-15% extra demand, warn the consultants.

Demand reduction of ~155 TWh is possible across residential, industrial and service sectors, says the report, which constitutes some 40% of total demand. But at the current rate, only ~54 TWh in savings will actually be realised – just 35% of the total demand reduction potential.

In the residential sector government policies fare best, potentially delivering 75% of the potential saving of ~58 TWh through measures like switching to CFL lighting, using energy efficient appliances and installing better insulation.

Not faring nearly so well is the service sector, where existing policies are only expected to realise savings of 45 TWh, representing only 15% of the total potential. Again, essential measures for this sector are better insulation, lighting controls and HVAC, says McKinsey.

And bottom of the heap is the industrial sector where planned policies are only likely to secure savings of ~24 TWh – a measly 5% of the potential.

The government says it will consult on how to improve energy efficiency improvement across the board, but particularly in the services and industrial sector, in the autumn.

“With such vast potential for more efficiency in the electricity system, we must look closely at all the possibilities,” commented Energy Minister Charles Hendry. “That’s why we have agreed to explore these options through a formal consultation.”

For further information:
www.decc.gov.uk/assets/decc/11/cutting-emissions/5776-capturing-the-full-electricity-efficiency-potentia.pdf

Related stories:
UK needs to pick up the pace of emissions reduction, says CCC (29-Jun)
UK ramps up roll out of key efficiency policies (28-May)
UK government launches £1 billion low-carbon procurement drive (17-May)
Queen’s speech promises reform of UK electricity market (10-May)

Article source: http://www.energyefficiencynews.com/i/5277/