The Confederation of British Industry (CBI) has called for the Government to support large and energy intensive businesses by implementing a coherent policy for combined heat and power (CHP).
The CBI said energy efficiency has been neglected for too long in the wider energy debate, in a report published this week.
CBI director for business environment policy Rhian Kelly said heavy energy users - which reprocessors tend to be - could benefit from energy efficiency measures. She said: “With energy prices still on the rise, energy efficiency can help mitigate the impact on firms, particularly heavy users.”
In November last year, MRW reported that the Welsh Government had called for urgent help with energy costs from the UK government after reprocessor Tata Steel’s announcement that it was slashing 600 jobs in Wales and another 300 in North Yorkshire.
It is widely acknowledged in the industry that there is great potential for a more widespread use of CHP in the UK, and this would improve energy efficiency.
London’s first CHP network was announced ealier this month. Southwark Council and Veolia Environmental Services are investing £7m to build a heating network so that heat and hot water generated at the South East London Combined Heat and Power energy recovery facility (SELCHP) can be transported to nearby homes.
Also, Viridor is in talks with E.on to develop a district heating system via its energy from waste plant at Trident Park in Cardiff.
Kelly added: “Businesses are frustrated with the tangle of overlapping policies that are bureaucratic, complex and costly,” and called for a simplification of energy efficiency policies, as well as ensuring any new initiatives add value.”
In March this year MRW reported energy policy uncertainty had resulted in a significant lack of faith within the renewable energy industry that the UK will meet its 2020 target.