Greater Efficiency and Local Generation is Answer to Energy Needs

3.41.00pm BST (GMT +0100) Tue 19th Sep 2006

Today the Liberal Democrats passed a motion which will change the way electricity is generated in Britain, leading to a reduction in wastage and a significant cut in CO2 emissions.

Currently more than 60% of electricity is lost in transit between large power stations and the customer. Approximately 20% is then lost through inefficiency within homes and businesses.

The package of measures will reduce wastage and pollution by encouraging more local environmentally sustainable power generation, as well as increasing energy efficiency within homes.

Liberal Democrat Shadow Environment Secretary, Chris Huhne MP, said:

"Our current electricity system is so inefficient that two-thirds of the energy in the fuel is wasted through losses in production and transmission even before it gets used at homes and workplaces.

"Greenpeace research estimates that the local switch would save every household £150 per year off their bills.

"We must also curb our appetite for power. There is a 1.5 % a year increase in electricity demand, and a fifth of all electricity generated is wasted in our homes by things like inefficient light bulbs, stand-by power systems and poor insulation.

"Regulation and green taxation each have their role in curbing consumption in the domestic sector, but tackling energy inefficiency in industry and business presents a different set of problems."

ENDS

Notes to Editors

The full motion can be found at:

http://www.libdems.org.uk/conference/agenda.html?id=687&navPage=conferenceagenda.html

The current, outdated electricity system is so inefficient that two-thirds of the energy in the fuel is wasted before it gets used at homes and workplaces (Calculated from DTI Energy Statistics 2005) - through loss in production and transmission;

With Electricity Generation Producing 30% of our Greenhouse Gas emissions (DEFRA Statistics) this means that, around a fifth of our greenhouse gas emissions are created for no direct benefit to anyone;

This approach has been given substantial support from work conducted for Greenpeace - see: http://www.greenpeace.org.uk/MultimediaFiles/Live/FullReport/7154.pdf - who estimate that a decentralised energy system could save householders, on average, £150 per year off their bills.

Woking Borough Council has slashed its emissions of carbon dioxide, the main global warming gas, by 77% And Holland meets 40% of national electricity demand through decentralised energy.

At present just 5% of the UK energy needs comes from DE - if this was increased to a similar level as in Holland, which we and the Energy Savings Trust both believe is achievable, this would help to reduce carbon dioxide emissions by 15% per year (Energy Savings Trust Figures)

Renewable technologies and energy efficiency measures would reduce emissions further still - potentially another 15% of emissions from this sector from renewables and 15% from energy efficiency by 2020 (with 20% of electricity and 1% cuts in energy use per year by 2020) - reducing greenhouse gas emissions further still.