Government support in the manufacturing sector
Over the past 2 years energy prices have risen significantly, impacting both consumers and producers. Few sectors have felt the pain
of rising energy prices more than the manufacturing industry.
The government is providing a number of support measures to help the manufacturing industry to improve its energy efficiency and reduce its energy costs. The following schemes and programmes were designed to assist businesses in reducing their energy spend and to invest in more environmentally friendly technologies.
The Industrial Energy Transformation Fund (IETF)
The Industrial Energy Transformation Fund (IETF) is a government fund designed to help businesses with high energy use to cut their energy bills and carbon emissions, through investing in energy efficiency and low carbon technologies. The fund is open to businesses of all sizes in all sectors, but it is particularly targeted at businesses in the energy-intensive industries sector.
The IETF provides funding for a variety of projects, including:
- Feasibility and engineering studies for energy efficiency and low carbon technologies
- Deployment of energy efficiency and low carbon technologies
- Development of new energy efficiency and low carbon technologies
The IETF is open to businesses that can demonstrate that they have a clear plan to reduce their energy costs and carbon emissions.
The fund has the potential to make a significant contribution to the UK's efforts to reduce its carbon emissions and is expected to help businesses to save over £1 billion in energy costs. Reducing their carbon emissions by over 2 million tonnes per year.
Its aim is to help businesses to reduce energy costs, improve competitiveness, increase investment in energy efficient equipment, and assist with job creation.
The Manufacturing Energy Toolkit
Available to SMEs, the Manufacturing Energy Toolkit provides access to experts and equipment, and can include a complimentary energy assessment or energy transition roadmap. In-depth assessments can be carried out at the production site to see which areas can benefit from immediate energy reductions.
Once the problem areas have been identified, a plan for further consumption cuts can then be put in a place with a view to significantly reducing the energy bills.
During the pilot scheme it was found that total energy in production can be almost halved, with up to 90% energy reductions achieved from individual machines. This process also takes a look at greenhouse gas emissions with a view to helping businesses improve their sustainability.
The Energy Intensive Industries (EII) scheme
This scheme was designed to help businesses reduce their energy costs and improve their competitiveness, qualifying sectors for this scheme included engineering, mining, steel, and meat processing.
While the scheme is still running, it is now closed to new applicants and is planned to be phased out by 2025, although there are talks to provide other industry specific schemes that may replace some of the cost reductions lost when the EII is phased out.
If you would like further information or assistance with any of these schemes, or would like to see other ways in which we can help you reduce your energy spend, then contact us today. We are currently offering a 3 month free trial of our Energy Manager/Bill Validation system, and we can assist you in making sure you get the best rates when your contracts enter their renewal window.
