This isn't simply a case of measuring column inches in the press. If commercial and industrial energy users get the impression that energy efficiency is somehow less important than sustainable energy, they (and the UK) may be missing an important opportunity.
Garry Felgate, director of the Energy Efficiency Best Practice Programme (EEBPP) says: "Energy efficiency is more important than ever in the building industry. By implementing energy saving measures into the initial designs, companies save money from the word go. However, it is often seen as low profile and pushed down the agenda due to lack of specialist advice or knowledge, or on the grounds of expense."
In fact, the government's recent Energy Review by the Performance and Innovation Unit (PIU), does highlight the need for improved energy efficiency, in the commercial and domestic sectors. The government estimates that the current potential for energy efficiency in all sectors amounts to around 30% of all demand. The table below outlines the figures.
The new Part L Building Regulations encourage greater energy efficiency. Also, buildings must now be signed off as commissioned to run at maximum efficiency.
But regulations can only be set at a relatively easily achievable level. They are better than no regulations at all, but do not stretch the construction sector further than it can reasonably go.
However, the PIU also recognises that there are other barriers to greater energy efficiency. It has recently started a programme of free on site energy assessments, through the Energy Efficiency Best Practice Programme (supported by the Carbon Trust). The Action Energy scheme offers free energy advice to all companies, regardless of size or energy use.
The PIU identified two main reasons why energy efficiency has not seen more investment. The first was that there was some form of market failure. For example, there is often better information on the capital costs of equipment than on their running costs, leading to what the PIU refers to as "adverse selection of inefficient goods." The second reason for lack of investment is that there are hidden costs, identified largely as management time in decision-making or the risks of unforeseen fuel price fluctuations or product under-performance.
But one of the key hurdles to encouraging more efficient use of energy is that it is such a relatively cheap commodity. On average it accounts for only 1·3% of total costs for business (and less than 3% in average households).
This means that the price of energy in most cases fails to take into account the environmental costs associated with its supply and use. The PIU report says that increased energy prices might push efficiency further up the business agenda, and at the very least ensure that organisations start to seek out information on energy saving techniques.
The PIU stresses the issue of raising the marginal cost of energy, but is reluctant to increase costs in the light of existing fuel poverty problems in the UK. Other incentives to energy efficiency such as the Climate Change Levy and Enhanced Capital Allowances Scheme are encouraging specifiers and end users to look more closely at energy use. Ultimately, however, unless the price of fuel is a more weighty burden few in the commercial sector will see good reason to lighten the load.
This is a difficult position for the government. What party would want to be seen raising the cost of fuel? Not one that wanted to stay in the good books of voters or UK business and industry. Reducing CO2 emissions is an urgent requirement and one which requires radical changes in attitudes and policy. How brave will government be?
Source
Building Sustainable Design
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