London, England — (METERING.COM) — September 19, 2013 – An innovative electricity demand reduction (EDR) pilot is to be launched in Britain with at least £20 million available as financial incentives for businesses and other organizations for reducing the amount of electricity they use, Energy Secretary Edward Davey has announced.
The new pilot will examine how businesses, and other organizations 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.
Under the pilot, an auction will be set up where organizations 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.
As an example of such an initiative Birmingham City Council has a program in place to upgrade around 90,000 street lights to use LED lamps. It is expected that this will reduce the council’s energy use by around 50 percent and save around £1.5 million per year on its energy bill – equivalent to the electricity use of over 7,000 homes.
The 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.