The Electricity Demand Reduction (EDR) Pilot

The Electricity Demand Reduction (EDR) pilot is being launched in June 2014, but do you know what it could mean for you?

It’s being backed with at least £20 million of government funding, and offers businesses and other organisations who install measures to reduce electricity demand the opportunity to bid for a financial incentive. More efficient lighting is a sort of measure that would receive support under the pilot. The pilot will test whether EDR could participate in Great Britain’s capacity market.

Applicants to the EDR pilot will bid a price, expressed in £/kW, for which they are prepared to ‘sell’ their capacity saving. Successful bidders will then sign a contract committing to delivering the capacity saving that they bid for. Once measures are installed, organisations will receive payment from the pilot – a contribution to the cost of the more efficient electrical equipment that has been installed.

Project plans will need to be submitted with estimated savings and a plan for measuring and verifying them, with organisations welcome to submit multiple applications covering different projects. A minimum bid size of 100kW is required in the auction but this can be achieved through several projects.

Successful bidders receive a grant payment for delivering the electricity demand reduction. Projects must be based in Great Britain and applications from all sectors, private, public and voluntary are eligible. Projects that shift electricity demand to other times of day or sources will not be eligible.

Reducing electricity use with more efficient lighting helps cut energy bills, reduce costs and lower emissions. There is significant potential for using electricity more efficiently in the UK, so the EDR pilot is a fantastic opportunity for businesses and organisations who will not just benefit from funding but also reduced utility costs in the future.

To find out more visit the Department of Energy and Climate Change website.