UK’s department of energy has announced a £20 million taxpayer cash for a trial scheme in which businesses will be offered to carry out energy efficiency improvements, such as replacing traditional light bulbs with LEDs or improving motors and pumps.
The trial scheme, with an ultimate goal to reduce the UK’s power usage, will see firms compete for the funding in a reverse auction and bid for the entire cost of the work to be covered or partially subsidised, according to the Telegraph.
The Department of Energy and Climate Change (DECC) said that the auction has already drawn the interest of more than 300 organisations, including “hospitals, airports and supermarket chains”.
The plan aims to reduce the national electricity demand, lowering the risk of blackouts and the need for more power stations to be built.
If the trial proves to be a success, ministers will further the program through the billpayer-funded “capacity market”.
The market, set to be launched later this year at an estimated cost of £13 per household per year, will pay power plants retainers to guarantee their availability and also pay businesses to temporarily reduce their usage at times of peak demand – for example by switching off fridges, or rescheduling energy-intensive works.
According to the DECC, the cash would be awarded “where projects would not have happened without the funding”.