Combined Heat & Power, District Heating & Cooling, Demand Side Services, Energy Efficiency

Energy efficiency measures critically needed, but not at expense of existing schemes

17 June 2022

More money to roll out energy efficiency measures ahead of next winter is critically needed, but not at the expense of existing schemes, says the Association for Decentralised Energy (ADE). 

Media reports today suggest Prime Minister Boris Johnson is planning to divert more than £1 billion from existing energy efficiency schemes to focus on insulating the country’s most vulnerable households through the new Energy Company Obligation scheme.

This money could potentially be taken from the £1 billion Public Sector Decarbonisation Scheme, which helps fund energy efficiency upgrades in public buildings such as schools and hospitals, as well as from a £450 million scheme to upgrade old gas boilers to modern heat pumps. 

The ADE warns that although it is essential to commit more money to energy efficiency measures in homes to improve energy security and tackle rising bills, this must not come at the expense of other important programmes. 

Joanne Wade, Chief Strategic Advisor to the ADE, says:

The Government desperately needs to provide more energy efficiency funding to the people most acutely affected by skyrocketing energy costs, but it also needs to provide a more consistent approach to funding clean, decentralised energy technologies so that they can continue to grow and play their pivotal role in tackling the energy crisis. 

Cutting the Public Sector Decarbonisation Scheme at such short notice would be a grave mistake – not only would it lead to issues for the supply chain and derail future action on tackling climate change, it also undermines industry confidence in such schemes.

Notes to editors: 

About Heat Networks  

A heat network is a network of insulated pipes used to deliver heat from the point of generation, in the form of hot water or steam, to an end user. Heat networks provide the means to transport heat efficiently. They can be supplied with heat from a diverse range of sources including power stations, waste-to-energy facilities, biomass boilers and CHP plants, gas-fired CHP units, heat pumps, electric boilers and even solar thermal arrays.

About Energy Efficiency  

Energy efficiency in buildings reduces demand for the heating and power of the indoor space through a combination of measures, such as insulation, draught proofing, and LED lighting. The cheapest, safest and most secure form of energy is the energy we do not use. That is why energy efficiency must be allowed to compete on equal terms with new supply capacity. Energy efficiency means the construction of fewer new generating plants and reduced network infrastructure investment combined with greater resilience and lower carbon emissions.  

About Flexibility   

Flexibility is used to balance supply and demand across the energy system. It can include, for example, energy users responding to a signal to turn down their demand which helps balance supply and demand without the need for additional generation (e.g. power stations). Energy users can also be asked to use excess energy from the grid, for example on a windy day.   

About CHP 

Combined heat and power (CHP), integrates the production of usable heat and power (electricity), in one single, highly efficient process. Delivering a minimum of 10% energy savings, it makes the very best use of renewable and fossil fuels. This efficiency means less stress on precious fuel resources and lower carbon emissions. 

CHP works by recovering heat from the power generation process and putting it to work in industry, buildings and homes, often delivering significant cost and CO2 savings. CHP currently provides 7% of UK electricity and in 2010 provided emissions savings of 13 million tonnes of CO2.  

About the ADE  

The ADE is bringing energy together to advocate on the priorities for the UK in achieving net zero. We have over 150 members organisations and together we are driving the decarbonisation of heat, championing the role of industry in the green transition and pushing for UK homes, places of work and public services to be energy efficient and smart. Only by getting users engaged and investing in energy efficiency, low carbon heat and providing smart flexibility will be the UK truly be able to decarbonise its energy system. For this to happen, energy must work for the user. At the ADE, we believe that an energy system designed around the user’s needs, enabling the right technology choice in the right place, serves everyone better.   


For further information please contact: 

Jonny Bairstow 

Head of External Affairs 

Association for Decentralised Energy 

Tel: +44 (0) 7305 049584 

[email protected] 

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