Dangers and unintended consequences of siloed renewable energy and energy efficiency policy making: Evidence from the UK

摘要

The improvement of energy efficiency and the proliferation of renewable energy generation technologies arefundamentally complimentary strategies in the pursuance of deep reductions in carbon emissions. However, theimplementation of policies focussed on the achievement of a single target that fail to holistically consider energyefficiency and renewable energy generation together, risks counterproductive outcomes. Using the example of theUK’s micro-renewable incentive schemes (the Feed in Tariff and the proposed Renewable Heat Incentive), thispaper will provide insight into how policies focussed solely upon achieving targets set out in the RenewablesDirective can undermine the achievement of progress in energy efficiency, fuel affordability, and carbon reduction.The end result distorts markets by creating perverse incentive and potentially promoting the inefficient use ofenergy.The paper will describe and critique the policy development process in the UK, highlight the areas of tensionbetween the delivery of renewable energy and energy efficiency, and consider the different drivers that led to thelack of coordination between policy areas. It will then discuss ways in which policy proposals could be adapted toensure the twin delivery of energy efficiency and renewable energy: specifically whether receipt of payments forrenewable generation should be conditional on energy efficiency improvements. Finally we will assess the optionsfor integrating financing schemes that support micro-renewables with energy efficiency schemes to encourage acomprehensive approach to low carbon refurbishment. The key metric within the comparison of these approacheswill be the cost per tonne of CO_2 saved.