Paltry Energy Efficiency Leaves UK Facing Large Post-Recession Emissions Rise

Posted on 02. Jun, 2009 by Ross in Manufacturing, Retail & Commercial, United Kingdom

Recent analysis of the UK reduced electricity consumption implies that energy efficiency measures are still too scarce to impact emissions and competitiveness after the current economic recession.

Electricity use in the UK for the first three months of 2009 dropped by 3.2% compared to the same period the previous year, despite colder mean temperatures. The majority of the decrease, according to a assessment of the data on the Carbon Commentary website, is as a result of a downturn of industrial demand brought about by the global economic slump. Households have essentially seen no downturn in use despite the pressure on personal incomes, high energy prices and alleged improvements in the energy efficiency of appliances.

More worrying is that despite an estimated 10-12% drop in industrial energy use, the UK industrial sector shrank by 12.1% in the last quarter year-on-year: even more than the drop in energy use by the sector. This implies that companies are failing to implement projects to significantly reduce energy costs as a way of saving money, despite a recent survey which said 80% of businesses intend to include energy efficiency measures as part of their cost-cutting plans.

Indeed, much of industry’s attention is currently diverted from actioning energy efficiency to reporting it, as companies prepare themselves for the implementation of next years’ Carbon Reduction Commitment scheme. With this landmark cap-and-trade legislation looming on the horizon, projects which could save businesses money, energy and carbon right now are being placed on the back-burner.

Why does all this matter? The UK will eventually start up the path of economic recovery, but will be burdened with the same levels of energy efficiency as it had prior to the downturn. The UK is expected to face chronic energy shortages in the near future as it races to replace aging coal power stations with renewables, nuclear and coal-CCS plants, all of which will increase the cost of electricity much higher than current levels. Energy efficiency schemes help to mitigate the costs of rising energy prices, but if the current uptake of energy-saving products continues then businesses risk impairing their future competitiveness.

Somar International is a market-led company providing proven and effective energy-saving technologies to assist businesses in defending the bottom line, cutting carbon emissions and reducing operational overheads.

Image by Kevin Utting, www.flickr.com/photos/tallkev/