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6. Meeting Scotland's energy needs : energy consumption
Demand for energy continues to grow. Under current patterns of production, this leads to increased carbon emissions and tends to drive higher energy prices. Improving energy efficiency is widely recognised as the easiest and most cost-effective means of reducing carbon dioxide emissions. The financial benefits of doing so are clear: industry and society can achieve more with less energy; public services are delivered at lower cost; and fuel poverty is reduced.
Better insulated buildings and more energy efficient workplaces cut energy bills for householders and businesses. Energy efficiency can also be achieved through better practice in our use of energy (switching lights off, less use of standby). Reducing demand in these ways also puts less pressure on energy supplies.
The Stern Review states that:
Studies by the International Energy Agency show that, by 2050, energy efficiency has the potential to be the biggest single source of emissions savings in the energy sector. This would have both environmental and economic benefits: energy-efficiency measures cut waste and often save money. 2
Stern goes on to suggest that reductions in global CO2 emissions due to greater energy efficiency could be between 31% and 53% of the total reductions achievable by 2050.
However it is not always clear that individuals and organisations fully realise the benefits that can be achieved through simple energy efficiency measures. There are still barriers to be overcome: making use of and acting on clear and trusted information, disruption if works are taking place, and the initial financial investment - although most energy efficiency measures save money in a relatively short time.
The Scottish Government has devolved responsibilities for the promotion of energy efficiency and takes on the challenging role of changing behaviour through raising awareness and providing advice and financial incentives to improve energy efficiency across the public, business and domestic sectors. The Scottish Government funds:
- support provided by the Carbon Trust and the Energy Saving Trust;
- an interest-free loan scheme for SMEs;
- an energy efficiency fund for the public sector;
- programmes to alleviate fuel poverty through energy efficiency and improved heating.
The Scottish Government is also using building standards and the planning system to help achieve low carbon buildings. The objective is to set a route-map to the goal of zero carbon buildings. The recently published Sullivan Report recommends staged increases in energy standards for new buildings to substantially reduce emissions - the first stage will be introduced in 2010.
Some regulatory powers associated with energy efficiency are the responsibility of Westminster, for example, the obligation on energy suppliers to support energy efficiency measures by their customers through the Carbon Emissions Reduction Target ( CERT). The Scottish Government is concerned that Scotland may not be benefitting fully from CERT and we want to ensure a more strategic and integrated approach to maximising the impact of CERT in Scotland. We are therefore developing and implementing a CERT Strategy for Scotland in partnership with the energy supply companies, the Energy Saving Trust and Ofgem.
We will continue to work with the UK Government in such areas and encourage them to consider what additional energy efficiency measures could be adopted across the UK to cost effectively reduce carbon emissions. For example, an accelerated roll out of advanced displays and metering technologies and more accurate billing in homes could help to raise public awareness of what activities use the most energy and what changes in behaviour produce the greatest reduction in energy consumption.
Going forward we want to ensure that we have the right incentives in place to encourage energy efficiency and microgeneration and we are committed to continually reviewing, improving, simplifying and streamlining programme delivery to ensure that support is effectively targeted.
The Scottish Government will set out later in 2008 how it is translating key objectives into action. This will take into account responses to the consultation on a draft Energy Efficiency and Microgeneration Strategy published in March 2007 by the previous administration. It will also reflect a number of pieces of research published in June 2008 and the consultation on the Scottish Climate Change Bill which seeks views on further incentives to encourage energy efficiency.
Later this year, the Scottish Government will introduce the 'Scottish Energy Efficiency Design Awards'. In total £1 million will be available in prize money for innovation and design solutions for improving the energy performance of Scotland's existing housing stock, particularly those homes considered hard to treat. We want to kick-start and build up a programme of exemplar low carbon refurbishments that demonstrate workable solutions to social and private housing providers and the design, building and construction industry.
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