Department of Energy and Climate Change report also shows that renewables now account for 15% of the country's electricity

This article is more than 6 years old

This article is more than 6 years old

Almost £8bn was invested in renewable energy in the UK last year, according to a report by the Department of Energy and Climate Change (DECC).

The report showed that £45bn has been invested in the UK's power generation and networks since 2010, supporting thousands of jobs, with an average of £7bn a year in renewables, which now produce 15% of the country's electricity.

As the report was published, the energy secretary, Ed Davey, set out details of the first £10m investment in a pilot scheme under which businesses and organisations will compete for funding for projects that reduce electricity demand.

The electricity demand reduction auction, which has a £20m budget, will provide funding for projects that would not otherwise have happened, and will save businesses money on their bills, cut carbon emissions and reduce demand on the grid.

Around 300 organisations including hospitals, airports and supermarket chains have expressed an interest in the pilot.

Greater efficiency could create savings equivalent to 9% of total demand by 2030, the DECC said.

The government is testing whether schemes to deliver electricity savings at peak times, such as replacing old light bulbs with LEDs, could get payments under the "capacity market", which aims to ensure the country has enough power to meet demand.

Davey said: "Our plan is powering growth and jobs in the UK economy. We are building a secure, sustainable energy system for the future, dealing with an historic legacy of underinvestment and neglect that threatened to undermine the whole economy.

"The funds we invest now in keeping the lights on could, in the future, be available to support cheaper projects that deliver lasting reductions in peak electricity demand."