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Energy efficiency gains ‘still available, with major economic benefits’

Energy efficiency improvements to home heating, insulation, lighting and appliances could reduce the energy consumed in UK households each year by a quarter, and knock £270 off the average annual household energy bill of £1,100, according to a new briefing paper published by the UK Energy Research Centre (UKERC) and

University of Sussex Centre on Innovation and Energy Demand. The savings would be equivalent to the output of six nuclear power stations the size of Hinkley Point C, says the research.

Using HM Treasury guidelines for policy appraisal – which involves estimating the cash value of changes in energy demand, carbon dioxide emissions, air quality and home comfort – the researchers estimate that investing in efficient heating, insulation, controls, lighting and appliances could deliver a net benefit to the UK economy of £7.5bn.

The full economic benefits of reducing energy demand by a quarter could be up to £47bn, says UKERC. This includes further economic benefits of improved health from warmer homes, stimulus to the economy of installing the energy efficiency improvements required, and capacity saved in the electricity system. Some of these benefits would also arise from other types of low carbon investment.

The briefing paper also finds that it is technically possible to reduce energy demand by a further 25%, and that these additional savings could also pay for themselves in the future. This means that it may be possible in time to halve energy demand in UK homes. Jim Watson, Director of UKERC, said: ‘This research proves that there is still huge potential to save energy from UK homes. It is clear that reducing energy demand needs to be a priority if the government is serious about bringing down energy bills. It should be the centrepiece of the Clean Growth Plan, which is now overdue.’

Jan Rosenow, Senior Fellow at the Centre on Innovation and Energy Demand, said: ‘Savings from energy efficiency improvements in homes since 2004 mean a typical dual fuel customer’s bill was £490 lower in 2015 than it would have been without those improvements. At the same time, households use more appliances, more lamps and enjoy higher in-home temperatures than they did in 2004.’

• Meanwhile, new research from business energy consultancy Inenco has suggested that the role of energy managers is predicted to become even more critical in reducing nondomestic carbon emissions but, with gaps in skills and technology, businesses must start investing in the tools and training required. The research concluded that, by 2030, today’s energy manager will have evolved into the future ‘utilities manager’ – a senior-level, digitally savvy data scientist responsible for making key strategic business decisions.

The 2030 energy manager will also have a broader remit covering all business areas, including transport.

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