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 are fundamentally complimentary strategies in the pursuance of deep reductions in carbon emissions. However, the implementation of policies focussed on the achievement of a single target that fail to holistically consider energy efficiency and renewable energy generation together, risks counterproductive outcomes. Using the example of the UK's micro-renewable incentive schemes (the Feed in Tariff and the proposed Renewable Heat Incentive), this paper will provide insight into how policies focussed solely upon achieving targets set out in the Renewables Directive 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 of energy. The paper will describe and critique the policy development process in the UK, highlight the areas of tension between the delivery of renewable energy and energy efficiency, and consider the different drivers that led to the lack of coordination between policy areas. It will then discuss ways in which policy proposals could be adapted to ensure the twin delivery of energy efficiency and renewable energy: specifically whether receipt of payments for renewable generation should be conditional on energy efficiency improvements. Finally we will assess the options for integrating financing schemes that support micro-renewables with energy efficiency schemes to encourage a comprehensive approach to low carbon refurbishment. The key metric within the comparison of these approaches will be the cost per tonne of CO2 saved.