Recent Energy Efficiency Trends survey revealed that government energy policy was losing confidence of suppliers in Q2. Nevertheless, consumers remain confident enough and the forecast for Q3 is optimistic.
According to the latest Energy Efficiency Trends report, delivered by EEVS and Bloomberg New Energy Finance, the level of confidence in government energy policy decreases. This survey was conducted between 12 August and 30 September 2015, in which 41 consumer organizations and 22 suppliers took a part.
It revealed that the confidence in current energy efficiency strategy has fallen dramatically during the Q2 in comparison with Q1. When speaking about suppliers opinion, more than 60% respondents consider that energy management during Q2 was ineffective.
The remarkable thing is that Q1 was the first time during a long period of time when confidence indicator grew and reached zero grade. However, it has fallen again in Q2. Moreover, it has hit all-time low.
The amount of respondents, who believe that government energy management is ineffective, has been up by 75 per cent since Q1. At the same time 36 per cent of suppliers consider that energy management is effective and needs no revision. In Q1, this index amounted 41 per cent of respondents.
Nevertheless, the forecast for Q3 is optimistic. The energy management is expected to be estimated at 115 points in the next quarter. It is eve higher than in Q1, when energy efficiency policy was estimated in 100 points. Consequently, in the event of achievement, it will be the highest index since this survey commissioning in 2012.
At the same time, consumers opinion is dramatically different. They, in opposite way, are sure that energy efficiency increased in Q2. Moreover, 80 per cent of respondents believe that energy branch development reached its highest level in Q2.
The main reason is that British consumers prefer high-efficiency lightning among the other individual technologies. The point is that the use of this technology increased during Q2, which made positive impact on consumers opinion.
It is also interesting that in Q2 the public buildings used energy projects upgrades much more actively than offices. That is to say that approximately 21% of public buildings benefitted from such upgrades. This is the first time offices have lost their top position in this rate – only 15% of them involved energy efficient technologies during Q2.
All of the sites, both public buildings and offices, are using not only high-efficiency lightning, but also general building controls and solar PV.
In spite of the lack of confidence in energy efficiency policy, the capital cost of energy projects has increased a lot since 2012 – from £60 000 to approximately £110 000-120 000.
The main problem, which has led to the collapse in confidence, is that British energy efficiency branch feels the lack of governmental support, Ian Jeffries from EEVS claims. Moreover, the policy of UK government as changed in favour of energy efficiency projects since the report had been published. That is why, despite all-time low index of energy management in Q2, the forecast for Q3 is so optimistic, as it had been mentioned before.
By the way, if any directive touching environmental issue is approved during the forthcoming climate negotiations in Paris, the renewable energy market will get a spur to become more effective. In this case, those who use fossil fuel in energy production will pay higher taxes. It will definitely develop renewable energy sector and make a positive impact on confidence in government energy policy.
Beyond that, Mr McCaig, who is the SNP’s energy spokesman in UK government, called upon revision of British energy policy. He stated that should not decrease funding of renewable energy market. McCaig also added that "ill-conceived and badly executed" plan of funding reduction has already caused a discontent among huge amount of people.
