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£4.7m electricity saving contracts awarded to 24 businesses

The Department of Energy and Climate Change has awarded a combined £4.7 million to 24 British businesses, through its Electricity Demand Reduction pilot project.

The Department of Energy and Climate Change (DECC) has awarded a combined £4.7 million to 24 British businesses, through its Electricity Demand Reduction (EDR) pilot project.

The EDR scheme was launched last June to see whether measures that reduce commercial electricity demand at peak times could potentially compete for funding in the grid capacity market.

An auction was held on 21 January to test the hypothesis and 24 UK-based companies were successful, with 37 projects approved in all. 

The weighted average bid price was £203 per 1kW of electricity.

Lighting the way

Although the terms of the project stated that savings could be made by improving motor or pump systems, replacing old light fittings with LEDs, or making any other improvement to a building or electrical equipment which would deliver lasting peak time electricity savings, all 37 of the winning projects involve lighting efficiency.

The successful businesses will now have to deliver at least 23,307kW of energy savings within the peak demand period of November to February, in either 2016/17 or 2017/18.

Successful companies

The largest single award, of £1.5 million, went to Energys Group, which will seek to make lighting improvements at multiple sites across the UK during the 2017/18 delivery window. It also received about £900,000 for improvements it plans to make next winter. 

Sainsbury’s was also awarded four contracts for the 2017/18 delivery year, worth around £800,000, for improvements to in-store lighting.

Other successful businesses include the British Heart Foundation, British Gas, Travis Perkins and the Football Association.

You can find out more about the pilot project through a series of short video tutorials and documents here.