A breakthrough for negawatts
The government has announced it will create a market-wide incentive for energy saving, or negawatts, for the first time, starting with a pilot in 2014. Green Alliance first proposed this idea in 2010. The government has chosen to support negawatts through the capacity market, the mechanism to ensure security of supply. While this may limit the role of electricity efficiency to reducing peak demand, the principle of paying to save energy has been established and the market can grow.
See our infographic explaining how a market for negawatts can work.
We’d like to thank the European Climate Foundation, WWF and the Association for the Conservation of Energy for their support of this work.