Energy Efficiency Strategy

THE ENERGY WHITE PAPER

Energy White Paper sets out four key goals for energy policy to:

• Cut the UK’s carbon dioxide emission by some 60% by about 2050;

• Maintain security of energy supplies;

• Promote competitive markets to raise the rate of sustainable economic growth and to improve our productivity; and

• Ensure that every home is adequately and affordably heated

It also placed energy efficiency and renewables at the forefront of tackling climate change. Setting a target for renewables to supply 10% of UK electricity by 2010.

In Scotland the Executive has set a firmer target for renewables to supply 40% of Scottish electricity by 2020.

LINK WITH EXECUTIVE'S SUSTAINABLE DEVELOPMENT POLICY

Jack McConnell, First Minister 2002

Priorities are:

Resource use:

“ We need to understand where our materials come from; how they are replaced; what happens to the community which supplied them; how they were brought into use; what we did with them and how they went to their next use”

Energy:

“ The excessive use of fossil fuels is at the core of many sustainable development problems. We can use less energy and generate power from renewable sources. We must ensure that the quality of our housing stock provides affordable warmth to the poorest in our communities. "

Travel:

“ Moving people and goods, and delivering services generate transport demands. Better land use planning; alternative service delivery and sustainable transport systems can reduce our impacts."

WHY IS THIS IMPORTANT TO SCOTLAND?

• Annual UK spend on energy consumption = £65 billion• Estimated that 20% (£13 billion) is wasted each year due to inefficiency• Perhaps £1.3 billion in energy resources lost annually to the Scottish economy• Equivalent to 50% of the total income from North Sea oil or one third of the total

tourism spend in Scotland

Improved energy efficiency has positive impacts for:

• Carbon emissions• Business resource efficiency• Fuel poverty• Public sector efficiency• Air quality• Low carbon economy

Energy use in Scotland by sector:

16%21%

29%34%

Domestic

Industry

Services

Transport

• Domestic consumption 15% up

• Industrial consumption 30% down

• Transport 12% up

• Services 10% up

SCOTTISH ENERGY CONSUMPTION TRENDS SINCE 1990

ENERGY EFFICIENCY:Vital to meeting UK carbon emission targets

0

20

40

60

80

100

120

140

160

180

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Year

UK

Em

issi

on

s, M

t C

RCEP target60% reduction from 1997

"Low Carbon Economy"

impact of hydrogen

more energy efficiency

more renewables

CO2 sequestration

Current forecasts

Potential impact of incremental low carbon technologies in the UK to 2050

• Define the Executive’s policy objectives for energy efficiency

• Ensure Scotland makes a significant contribution to UK carbon

emissions targets

• Set agreed methods for measuring progress

• Identify priority sectors and methods for Executive intervention

• Increase co-operation across the Executive and with other bodies

(including UK government)

• Improve the impact of the Executive’s investment in energy

efficiency

• Communicate clear explanation of the Executive’s energy

efficiency policy

ENERGY EFFICIENCY STRATEGY: OBJECTIVES

ENERGY EFFICIENCY STRATEGY: SCOPE

Strategy will cover devolved energy efficiency measures aimed at:

• Business• Public sector• Transport• Domestic sector

For example:

• Executive funding of Energy Saving Trust and the Carbon Trust;• Agencies that use Executive resources to deliver energy efficiency –

e.g the Enterprise network and the Business Environment Partnership;

• Transport related energy efficiency measures;• Energy efficiency aspects of sustainable development;• The impact of EU transmissions trading;• Fuel poverty initiatives;• Building energy efficiency standards;• District heating/combined heat and power schemes.

Strategy also needs to fit with UK policy and existing UK energy efficiency initiatives

Such as:• Fuel tax • Road tax• Company car tax• Climate change levy• Energy efficiency commitment• Energy labelling of goods• Enhanced capital allowances• Community Energy programme• Carbon Trust• Energy Saving Trust

Energy efficiency strategy

Key questions:

• What should be the priority sectors?• What are the barriers?• How can these be overcome?• Should the strategy set targets? In what form?• What new initiatives could feature?

Your views are welcome