Business, Energy and Industrial Strategy Secretary Greg Clark has released the government’s Industrial Strategy, which identifies options to help minimise business energy costs while raising resource productivity.
Published on 27 November, the strategy sets short, medium and long-term options to reduce business energy costs. Short term solutions, mostly reiterated from the Clean Growth Strategy, involve widening eligibility for exemption schemes from renewables costs for energy-intensive industries, the development of a package of measures to support businesses to further improve their energy productivity, and the encouragement of greater investment into energy efficiency measures and technologies. This includes the development of a new scheme to support investment in industrial energy efficiency.
Other measures include designs for a new £18mn programme to support investment in the recovery and reuse of heat from industrial processes, and the Smart Systems and Flexibility Plan, which aims to save consumers and businesses up to £40bn cumulatively over the coming decades
In the long term, the government will provide investment of over £2.5bn in low carbon innovation by 2021, as set out in the Clean Growth Strategy, and invest £100mn to support innovation in low carbon industrial processes and technologies. These investments will be supported by the development of a longer-term framework and the Industrial Strategy Challenge Fund.