The UK held its first ever Electricity Demand Reduction (EDR) auction, giving organizations the chance to bid for $15 million in government funding to reduce their energy demand.
The funding will go toward energy saving upgrades and will test whether organizations can provide lasting electricity savings at peak times of demand. This is typically during the winter when more electricity is used for lighting. It is hoped that in the long term, these organizations could compete in the capacity market, acting to reduce the need for extra electricity generation at peak times, which is when the capacity market comes into effect.
The EDR Pilot will test whether projects deliver lasting electricity savings at peak times (in kW) – for example by replacing old bulbs with LEDs or improving motors and pumps.
Subject to the outcome of this first EDR pilot, a further auction may follow. In total, up to $30 million has been allocated for the pilot.