Energy Institute urges retrofits and equipment upgrades to make quickest efficiency gains

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London_SunsetRetrofitting existing building fabric will make the greatest energy efficiency gains over the next three years, according to the Energy Institute.

Institute members believe technology and equipment upgrades also have significant short-term potential, as do controls and smart systems.

However, they place little stock in electric heat pumps, smart appliances or renewable heat in either the near term or the long term. Screen Shot 2016-06-15 at 10.58.24

By 2030, EI members believe new build standards will make the biggest impact on UK energy efficiency.

Those findings were published in the EI’s annual Energy Barometer, based on a survey of members.

“Energy efficiency in buildings can deliver results both in the short and longer term, if government acts now to set a policy framework that drives investor confidence, consumer demand for energy efficiency, and energy use and behaviour change,” said Dr Joanne Wade, chair of the EI’s Energy Advisory Panel, which oversaw the survey and report.

However, when asked what single measure government could take to meet carbon budgets and 2050 emissions targets, energy efficiency was trumped by renewable energy and nuclear energy, as well as policy stability and financial incentives. Meanwhile only 6% of those polled cited demand management and reduction as the key policy approach. In the main, members were unconvinced the UK would meet its approaching carbon budgets and 2050 emissions targets.

Skills

While new nuclear is seen by many members as a key pillar of decarbonising power, they believe the sector will suffer from the largest skills shortfall in both the long and mid-term. Skills shortages in energy storage and smart grid sectors will also suffer the next largest gaps, they believe. Screen Shot 2016-06-15 at 11.01.15

Energy storage

Members also singled out energy storage as the technology most in need of innovation, with batteries perceived as potentially the most cost-effective technology at all scales, increasingly so at smaller scales. But investment and cost, limitations of existing technology and current policy and regulation were perceived as barriers to scale. Meanwhile, around 16% of respondents did not see energy storage playing a significant role in the UK energy system by 2030.

Fuel sources

Members believe that gas will be the primary fuel source for both heat and power by 2030, and that oil will continue to largely power transport.

In the power sector, nuclear will play the key supporting role, according to the EI, followed by offshore wind.

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See the full report here.

Related content:

Free report: Financing Energy Efficiency

Free report: Decarbonising heat

Free report: Directors’ Energy Report 2016

Free download: Demand-side response report

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