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This pocket guide to ETI describes

• What we do
• The areas we work in
• The outcomes
• Commercially available products
• Who we have worked with

CREDS responds to consultations and calls for evidence from government, agencies and businesses, providing insight and expertise to decision-makers.

The problem of decarbonising heating in buildings has been studied for more than 20 years,1 but there is still no settled consensus on strategy or choice of technology. There is consensus that the problem requires analysis of the whole energy system. While there is currently much interest in the conversion of the gas grid to hydrogen as a route to heat decarbonisation, recent literature based on whole system analysis appears to indicate that heat pumps are likely to offer the cheapest decarbonisation option overall. Each new installation would achieve an immediate factor-of-three reduction in emissions, with the promise of close-to-zero emissions by 2030, as a consequence of a process that now appears unstoppable - the decarbonisation of electricity generation. Although many dwellings would also benefit from additional insulation to increase health and comfort, the overall role of insulation in reducing emissions due to heating in the UK is likely to be secondary. High levels of insulation are not essential to the deployment of heat pumps and are only likely to be cost effective in easy-to-treat properties. But technology choice is not an either-or question. Combinations of technology, such as hybrid heat pumps, and deployment of large heat pumps in district heating systems, offer obvious advantages. And even though the role of hydrogen as a vector for supplying heat to individual homes appears limited on overall cost grounds, hydrogen or hydrogen-derived fuels are likely to play a strategic role in providing backup for the electricity grid at multiple levels, in particular, for the very long-term energy storage that will be needed from about 2040. Sifting through the multiple combinations and configurations of technologies that are, and will become available over the coming 30 years will be an on-going activity. In this context, a key recent development is an understanding that technology selection has to involve an appreciation of the overall architecture of the energy system.

Low-carbon energy technologies such as ammonia, batteries, e-fuels, biofuels and hydrogen fuel cells are rapidly gaining traction in the maritime industry. Heavy fuel oil will soon no longer be the primary choice for propulsion. Battery technology is an important part of the mix, offering energy efficiency, reduced emissions and improved performance for smaller vessels, with hybrid solutions emerging for longer distances and international shipping. The UK can be at the forefront of these developments but must invest in port and charging infrastructure. The global maritime industry facilitates the movement of goods, people and resources across oceans, seas, lakes, rivers and inland waterways. The industry encompasses navigation, shipping and marine engineering and utilises a wide range of vessels for specific sub-markets. With over 80% of global trade by volume transported by sea, the maritime industry is a critical component of the global economy. However, the maritime industry is currently heavily reliant on fossil fuels to power ships and is considered a hard-to-abate sector. The International Maritime Organisation aims to reduce carbon emissions in the sector by 50% by 2050 compared to 2008 levels. This insight explores the alternative technologies for the maritime sector, including hydrogen, natural gas, battery-electric propulsion and other low-carbon fuels, and assesses the size of the battery-powered maritime market. The specific performance characteristics of battery technology for different applications across the maritime sector are outlined, and proposed actions to develop and support the UK maritime industry are also highlighted.

CREDS (Centre for Research into Energy Demand Solutions) responds to consultations and calls for evidence from government, agencies and businesses, providing insight and expertise to decision-makers.

This response is to a consultation issued by the Department for Business, Energy and Industrial Strategy on 22 July 2019. W

National infrastructures, such as energy, water, and transport systems, are critical to society. Exploring the effect of investments in infrastructure is an active area of research with a high impact on the well-being of the UK. Data is an essential pre-requisite for good analysis and good decision making, but there are many barriers to the effective use of data. Data Infrastructure for National Infrastructure (DINI) is a pilot study within the Department for Science, Innovation and Technology's UK Research Data Cloud Pilot programme. Its aim is to explore the potential of data to drive research and its impact on policy. Our scope is National Infrastructure Systems within the UK with a focus on energy, water and transport. The project was coordinated by the Data and Analytics Facility for National Infrastructure, working with the Energy Data Centre and the JASMIN Facility, with contributions from Icebreaker One, the Digital Curation Centre, and the UK Collaboratorium for Research on Infrastructure and Cities. This report summarises the outcomes of the DINI pilot project. It begins by presenting the vision for DINI and providing a statement of the major action proposed from the work of the project. The report then gives a summary of the major results of the project, discussing the background of research in infrastructure systems engineering, and characterising the use of data in this area. The main results of the landscaping work of the pilot study are given next, including the research benefits, benefits to non-research partners, and the wider benefits to society. The barriers involving legal, security, commercial, cultural and technical themes are discussed, with a summary of the major barriers in each area being presented. The work of the technical design studies are then discussed, with the report concluding with its 16 recommendations based on how to form a research data cloud to support infrastructure systems engineering.

This presentation briefly overviews ETI and their current plans for gasification across the UK. It discusses the need for cleaning up raw Syngas, the challenges this cleanup poses, the benefits of gasification, and the gasification landscape of the UK moving forward with ETI's project.

According to the Climate Change Committee we could be using almost twice as much electricity in 2050 as today, and most of this will be from renewable sources. These changes are partly due to increased demand as transport and much of heating become powered by electricity and partly due to needing to move away from fossil fuel based generation. Matching demand with renewable supply from variable sources like wind power will likely mean that electricity demand will have to be moved around in time and decreased during periods when the system cannot provide it. This is known as demand response. It is almost certain that households will have a role to play in demand response, and various trials and commercial schemes have been implemented in recent years to ascertain how successful it could be. As all of this gets underway, we ask: what is the best way to implement domestic demand response on a large scale and how can less well-off households be factored in fairly?

Energy Systems Catapult has identified a range of options for reducing the capital costs of rolling out low carbon district heat networks across the UK, laid out in a report for the Energy Technologies Institute. Improving district heating networks in the UK District heating, where all buildings within an area share a single heat source, has the potential to play a far greater role in the UK energy system. However, work must be done to help heat networks evolve. If fully exploited, nearly half of all heat demand could be met by heat networks. Capital costs are the main barrier to progress in this area. However, we believe these proposals could reduce capital costs by up to 40%, rendering heat networks more attractive than other forms of low carbon heat provision. Reducing heat network costs - eight cost-saving route maps: We have suggested eight 'route maps' designed to cut costs for district heating network deployment in the UK:
Knowledge Management Research and Training - Establish a District Heating Knowledge Centre to share learning and increase the impact of all other innovations. This knowledge centre would disseminate current best practice and outputs of other innovations, bringing together a wide group of stakeholders.
Low Flow Rate Design - Develop tools to help increase the accuracy of heat demand estimates and maximise the difference between temperatures entering and leaving the building.
Radical Routes - Reduce costs of civil engineering by running distribution pipes along the buildings themselves; either in the eaves or on the front. This is most effective in terraced housing but can be implemented cost-effectively in semi-detached areas.
Trenchless Technologies - Drill tunnels underneath the surface, removing the need for trenching. The technology for this already exists but key products need development to make it more cost effective.
Improved Front End Design and Planning - Demonstrate and quantify the positive impact of improved design work and surveying. This includes undertaking detailed survey and design work early, focussing on the activities that realise the greatest cost savings as well as adopting alternative contract frameworks to minimise the pricing of risk.
Shared Civil Engineering Costs - Share the costs of civil engineering between utilities working in the same region. This solution includes aligned planning cycles, developing a Streetworks Partnership, and joint ventures between district heating and utility companies.
Direct Heat Interface Unit System and Existing Hot Water Storage - Demonstrate the potential cost savings of replacing indirect with direct Heat Interface Units (HIUs) whilst making use of existing hot water tanks. This would include some product development to alleviate perceived risks to the consumer. Heat Interface Unit Optimisation - Innovate to reduce the cost of HIUs for retrofit schemes from approximately £1,500 to £200.
Next Steps for UK Heat Networks To enable innovations to reduce capital costs within heat network infrastructure, UK central and devolved governments need to provide frameworks that support demonstration, knowledge transfer and skill development in the sector. Elevating heat networks to be included as infrastructure within the Infrastructure and Project Authority will give impetus for stakeholders to innovate. It would demonstrate that the UK government recognises that the need for and scale of our heat network development is a major infrastructure project.

By 2050 the UK energy system, including transport, will need to look significantly different to today if the UK is to meet its 2050 Greenhouse Gas (GHG) target. The Energy Technologies Institute’s (ETI) Heavy Duty Vehicle (HDV) programme aims to challenge where heavy-duty transport, and the Heavy Goods Vehicle (HGV) sector in particular, can help the UK meet its climate change targets. This report sets out to provide an holistic view, considering the HGV sector in context with the other parts of the energy system that also have to decarbonise if the UK is to meet its climate change targets. This report concludes that the requirement to decarbonise the UK energy system to achieve or exceed the 80% GHG reduction targets requires all energy system sectors to decarbonise at an expense which is much more than a simple turnover of assets, effectively incurring a 'cost' to reduce CO2 emissions.

In 2010, the ETI started a programme of work to investigate how to tackle the Greenhouse Gas (GHG) emissions of the HDV sector in the UK. The ETI has conducted an HDV efficiency programme, unique in its breadth and depth, that has attempted to deliver a meaningful impact on the fuel efficiency of the HDV fleet in the UK. This insight report discusses the land vehicle portion of the programme only, i.e. GVs, buses, rail locomotives, quarry machinery, construction machinery and agricultural tractors. The following can be concluded from the ETI Programme: The evidence, analysis and technology acceleration has influenced the powertrain research and development of Caterpillar, the world’s largest off-highway equipment manufacturer. Fuel efficiency gains can be achieved across a range of vehicle types and these gains can be financed by the fuel savings. In some instances, the payback period is acceptable to the first purchaser and, where they are not, the payback period is within the economic life of the vehicle. The 2025 EU HGV GHG reduction target is feasible, thus supporting the stringency of this target. More publicly available research should be conducted on HGV movements and payloads to enable better research, technology developments and policies in the future. Delivering double-digit powertrain fuel savings on HGVs is a significant challenge as their diesel powertrains are already well optimised for their motorway dominated usage cycle. Accelerating the implementation of lower-carbon fuels or energy carriers is the only practical way of delivering significant (i.e. above 15%) HGV GHG reductions in the mid to longer-term. This insight report summarises and integrates the ETI’s extensive portfolio of HDV decarbonisation projects. The decarbonisation narrative provided is intended to guide further work and drive action towards zero (or near zero) HDVs.

In 2010, the ETI started a programme of work to investigate how to tackle the Greenhouse Gas (GHG) emissions of the HDV sector in the UK. The purpose of this insight report is to provide a narrative for both the programme approach and the high-level outcomes. The ETI has conducted a programme, unique in its breadth and depth, that attempts to deliver a meaningful impact in the fuel efficiency of the HDV fleet in the UK. The ETI hopes that the programme has the following long-term impacts: It will continue to influence the powertrain strategy of Caterpillar, the world’s largest off-highway equipment manufacturer. It shows the fuel efficiency gains that can be achieved across a range of vehicle types and that these gains can be financed by the fuel savings. In some instances, the payback period is acceptable to the first purchaser and, in those instances where they are not, the payback period is within the economic life of the vehicle. The results achieved suggest that the 2025 EU HGV GHG reduction target is feasible, thus supporting the stringency of this target. That more publicly available research is conducted on HGV movements and payloads to enable better research, technology developments and policies going forward (the ETI’s support for the Centre for Sustainable Road Freight is an example of this). That the work shows the challenge of delivering double digit powertrain fuel savings on HGVs as their powertrains are already well optimised for the motorway use that they often see. Thus, accelerating the implementation of lower carbon fuels or energy carriers as the only practical way of delivering significant (i.e. in excess of 15%) GHG reductions in the mid to longer term.

The ETI Smart Systems & Heat programme (SSH) was launched in September 2011, following 18 months of scanning the global landscape of smart systems projects, and shaping the proposition with input from a wide range of stakeholders. Almost uniquely at that time, the ETI programme focussed on the challenge of heat (in the UK). This insight report marks the completion of the first phase of the programme, in which tools, data and capabilities have been developed to take the programme forward into larger scale development of solutions. The programme passed to the Energy Systems Catapult (ESC) in November 2015. ETI continued to act as the funder and client for Phase 1, while ESC has been developing further projects to take the programme forward with a wider group of stakeholders.

Differing generating technologies are often compared using simple Levelised Cost of Energy (LCOE) analysis. Whilst useful in some circumstances, LCOE analysis can be misleading and hide the true system costs incurred by different technologies under different conditions. In practice, the average cost achieved may be very different to the theoretical LCOE. Simple LCOE analysis is therefore often not an effective way of robustly comparing the real overall system cost of various generating technologies. The ETI has produced the tool to enable anyone with a basic understanding of electricity balancing to explore the effect of different assumptions on the total cost of meeting electricity demand, as it varies through the year. The tool has enough functionality to be useful and to allow non-expert users to explore themes and trends, and looks at meeting electricity demand from a single generating technology with the flexibility to match supply to demand provided either through batteries or combined cycle gas turbines (CCGTs). This report explains at a high level how the tool works and show examples of different results that can be derived from it by using the built-in data, at the same time illustrating some of the weaknesses of using LCOE in isolation. The real value of the tool comes from users using their own data to understand sensitivities to assumptions. This report deliberately has no findings or recommendations, other than to use the tool freely and thoughtfully. The worked examples in this report show: How significant hidden systems costs and carbon emissions can be. The risks that might arise through not estimating potential global impacts of embedded greenhouse gas emissions, whether in fuels, construction materials or even electricity supplied through interconnector.

EPCs will grow in importance as the policy environment moves to a more performance-based approach, as is happening with MEES and the aspiration to move the housing stock to EPC Grade C. Linking EPC performance to the provision of finance, debt and subsidy will put EPCs in the spotlight and increase the legal exposure of the process generating them. However there is clear and compelling evidence of significant and widespread issues around the reliability, accuracy and precision of EPCs. We have seen major discrepancies operating on a number of levels in the EPC data: between different assessors, between different classes of property, between assessments on the same property, between different EPC assessment regimes. There is also clear real-world evidence that EPCs may not reflect the actual performance of the building even when occupant behaviour is discounted. This is most clear in non-domestic buildings where average in-use performance bears little relation to EPC rating. This observation is less marked in household ratings, but it is still a major concern. Making the EPC process more transparent will go a long way to addressing these problems by allowing energy users and researchers to question discrepancies and help improve the process. Cloning is a case in point: this is a perfectly sensible approach for similar properties but the process needs to be opened up to scrutiny. Gaming of the system is another area that needs to be addressed.

This submission is based on our project on High Energy Consumers funded by the Centre for Research on Energy Demand Solutions1. The project investigated the potential for reduction of high-end domestic and travel-related (henceforth ''household') energy consumption to contribute to decarbonisation. Summary: We confirm known drivers of high household energy consuming behaviour as home heating, car use and frequent flying. We identify that these and other energy consuming behaviours are normalised in high consuming households and are driven by social norms and expectations rather than behaviourist understandings of discrete, rational choices primarily based on information and attitudes. We provide evidence that deliberation reveals that even high consumers believe that strong government action is required to limit some choices and make others more viable, to achieve behaviour change that has not manifested voluntarily. We therefore advise that government investment in low carbon alternatives and restriction of high consumption infrastructures and devices is necessary to achieve behaviour change in line with Net Zero targets.

Green ammonia is produced from renewable hydrogen with no direct CO2 emissions when combusted, making it an important option to interrogate. This research uses a mixed methods approach, including analysing shipping stakeholders’ perspectives, to consider the full range of factors relating to its deployment and use. The study emphasizes though that the on-ground realities of transitioning away from fossil fuels require significant developments across the entire fuel supply chain, which extends beyond considerations around ammonia’s technological viability and encompass changes needed to onboard and portside infrastructure, incentives to accelerate retrofit and fleet renewal, and recognition of risks posed by first-movers in the sector. This study states that with short timeliness associated with Paris targets, and anticipated rising costs of new fuel infrastructure, there is an imperative to implement mitigation policy that focuses on urgently reducing reliance on liquid fuels, while alternative fuel deployment is established at scale.

This is the written evidence from the Centre for Research into Energy Demand Solutions (CREDS) to the Committee's inquiry into 'Heating our Homes'. CREDS was established in 2018 as UK Research and Innovation's hub investment in energy demand research. Over the last 5 years, we have established a large evidence base, now structured it to provide easy access to non-academic stakeholders. In this document we address the questions raised by the Committee to which our research is relevant. Inevitably this involves some loss of detail and nuance on complex issues. We would be happy to supplement this with oral evidence.

Infographic showing what will need to be done to over a ten year period to prepare for transition to a low carbon energy system

The Secretary of State for Housing, Communities and Local Government has announced sweeping reforms to the planning system in England. Re-energised by the need to 'build back better' following COVID-19, the well-established myth that it is planning permission that is primarily responsible for stagnating the delivery of new housing in the UK, has re-emerged. Seemingly immune to evidence of over a million plots of land currently standing empty despite being granted planning approval, the narrative here is that government bureaucracy (rather than chronic market failure) is the problem. Not only at risk of undermining democracy by circumventing important checks and balances, this myth is more than ideological fiction; it is in direct opposition to reality. In light of recent research carried out by academics at the University of Edinburgh, here we discuss the implications of this for our strive to deliver better quality, more sustainable and energy-efficient homes.

Our answers to the questions focus on the amount and ways that energy is used in the UK. The answers draw on CREDS research and we would be happy to share more details with the Review team.

Domestic retrofit is a particularly complex climate policy challenge, with many interconnected barriers: behavioural and technical, cost and affordability and supply side capacity and skills. There is no shortage of advice on how to tackle the problem, with recent reports from E3G and the Construction Leadership Council being the most comprehensive. The government's Energy Security and Heat and Buildings Strategies set out the range of policy options that the government is considering.

Energy demand reduction has been a key part of the UK's progress to date in climate mitigation. All future scenarios compliant with the UK's international commitments and national legislation indicate that energy demand reduction will continue to be a critical component. Despite its acknowledged importance, there are contested approaches to energy demand reduction policy. In particular, there is interest in behavioural economics (Thaler and Sunstein, 2008), that emphasises 'nudge interventions' (Halpern, 2015). Based on a broader range of research on energy use, this paper critiques that approach with respect to effectiveness in the context of major energy transitions. We argue for a more pluralist approach, using a range of disciplinary insights and pointing towards a wider and more ambitious set of policy instruments.

Reducing the UK's overall energy demand provides a necessary and major contribution to net-zero emissions by 2050 as part of a comprehensive climate plan, with many associated benefits that would improve quality of life for all. Cutting energy use could:deliver around half of UK emissions' reduction by 2050;enhance quality of life, with significant co-benefits that align with other policy objectives (health, biodiversity, affordable warmth);reduce the risks and costs associated with relying on untested, undeveloped technical solutions in energy supply and engineered carbon dioxide removal (CDR, sometimes called geo-engineering).A low energy demand strategy could be at the heart of a fair, affordable and healthy route to net-zero. New research from CREDS (Centre for Research into Energy Demand Solutions) suggests that it will be difficult and expensive to meet the UK's net-zero target without measures to reduce demand for energy

Connected Autonomous Vehicles (CAVs) may be key to reducing carbon emissions from land travel. Transport emissions are flatlining but not coming down, and AVs are seen as a techno-fix. This working paper reveals that the priorities of people around autonomous vehicles differ from those of policy-makers and developers. The Institute for Transport Studies at University of Leeds have been researching public views of CAVs. In particular, we explored views of privately-owned and shared CAVs, as the highest carbon reduction benefits of CAVs arise from their being shared. Shared vehicles can transport many more people throughout the day, requiring a smaller vehicle fleet. The latter can include ‘taxis’, car clubs, and public transport modes. This research used three investigative methods to gather information, being: a choice experiment, deliberations, and a Multi-Criteria Decision Analysis (MCDA) exercise. This Working Paper shares their qualitative work package. The findings appear to offer support for shared CAVs over privately-owned modes. For policy-makers, there are warnings that people do not really understand CAVs, and that people want the inequalities of current transport systems to be avoided in the future.

The core aim of the CREDS Heat Theme has been to explore strategies for decarbonisation of heat in the UK, within an overarching Energy System Architecture Framework. Our initial findings suggest that existing energy system models are inadequate to handle multiple policy goals and that this undermines their usefulness for exploring strategies for energy system decarbonisation. The heavy emphasis placed by the energy research community on achieving net-zero sits uncomfortably with the multiplicity and emergent nature of other system objectives. This makes envisioning possible future energy system options and negotiating a feasible pathway towards a successful energy transition difficult. Our finding that different Energy System stakeholders hold divergent opinions on available technologies and strategies for decarbonisation reflects this. Our most recent piece of work, System Shocks, Response, and Recovery (HCC_C-19) sought to engage with disadvantaged communities, professionals and expert system stakeholders to explore the aftermath and implications of the COVID Pandemic, the Energy Price Shock and the impending economic crisis. In this document we set out policy recommendations based on engagement with more than 200 participants, in a variety of settings, in this programme.

Covid-19 has forced countries around the world to make massive adaptations to the normal way of life to reduce the risk of the spread of the virus. This briefing sets out new insights into how people's travel patterns have adapted over time and why. It draws on national data sources and a major panel survey of over 6000 people conducted in July and December 2020. It calls for a major realignment of investment and policy to ensure that we do not return to the overcrowded, congested, polluting and unhealthy transport system that people had come to accept as inevitable.

Energy is required to transform raw materials into products. The majority of this energy is provided by fossil fuels and therefore contributes to climate change. Energy demand continues to rise globally, which means that additional renewable energy is used to meet this increase in demand. At this global level renewable energy supply increased by 81 million tonnes of oil equivalent (Mtoe) in 2017 (IEA, 2019). However, in the same period, energy demand grew by 328 Mtoe (2.3% more than the previous year) (IEA, 2019). The demand for materials and products forms an important part of this increase and, according to the International Energy Agency, global industrial energy demand is forecast to continue increasing (IEA, 2020). At the domestic level it initially appears that the UK is moving in the opposite direction to the global trend with significant declines in industrial energy in the recent past; industrial energy demand has halved over the past 40 years (BEIS, 2020). However, as the UK has shifted to become an increasingly service based economy, the materials required to satisfy UK consumption have not declined; they are increasingly imported from elsewhere (University of Leeds and Defra, 2020). This partially explains why the energy demand of UK industry has halved in the past 40 years while industrial energy demand has not. The reality is that the industrial energy demand needed to satisfy UK consumption has remained relatively unchanged for the past 40 years (Barrett et al, 2018).

We are pleased that the draft strategy aims to be comprehensive, and brings together strands of work from across the Scottish Government, setting out the many policy areas that will need to work together to deliver net-zero. CREDS strongly supports the continued focus on energy efficiency at the heart of policy to achieve net-zero. Energy efficiency will be needed to minimise demand on the energy supply and distribution system, and brings multiple benefits to low-income households, such as lower energy bills and improved comfort levels. We welcome the Strategy's acknowledgement that there is no single solution to the provision of net-zero heat in buildings, and that there will need to be a combination of policy levers and programmes to ensure a just transition.

Shifting the focus: energy demand in a net-zero carbon UK is CREDS' first major publication. It builds on research undertaken by members of the CREDS consortium over many years to address the question "What can changes in energy demand contribute to the transition to a secure and affordable UK energy system that is compatible with net-zero carbon emissions?". It examines the most recent comprehensive statement of UK Government Energy policy - the Clean Growth Strategy. Drawing on expertise in the CREDS consortium across the buildings, transport, industry and electricity sectors, the report sets out a vision for the role of energy demand changes and develops detailed recommendations for action.

The Centre for Research into Energy Demand Solutions (CREDS) works with researchers, businesses and policymakers to support the transition to a low-carbon energy system. This summary provides a quick look at our first major report, which takes the Government's most recent statement on energy transition, the Clean Growth Strategy (CGS), as a starting point and draws on current knowledge from the UK energy demand research community. Building on the comprehensive, quantitative analysis by the Committee on Climate Change (CCC), we agree that major improvements in energy productivity in businesses, transport and homes are crucial to achieving the CGS goal of accelerating the pace of clean growth: this requires attention to the technical, social and institutional factors that drive energy demand. A much stronger focus on energy demand solutions is needed to address the greater action implied by a net-zero carbon target, and we set out recommendations on the policy changes required to deliver the energy-use related goals of the CGS.

CREDS compiled responses on the following sections:Key energy efficiency technologiesLooking beyond energy efficiency - flexible demand and storage in electricityLooking beyond energy efficiency - decarbonising fuelsWider technical and social changeConclusions and implications for policy

The Energy Technologies Institute (ETI) is a £400m industry and UK government partnership into low carbon energy system planning and technology development. Its mission is to accelerate the development, demonstration and eventual commercial deployment of a focused portfolio of energy technologies, which will increase energy efficiency, reduce greenhouse gas emissions and help achieve energy and climate change goals. Most stakeholders agree that the ETI has made a significant contribution to low carbon energy innovation over the last 10 years. As it approaches the end of its operational life in 2019 when its funding finishes, we feel there is a rich legacy to the ETI’s operation in addition to its projects and insights. We have undertaken a staff and stakeholder review to identify the lessons learnt and to share the knowledge we have accumulated over the last decade to help inform the development of innovation bodies in the future. As we now come to the end of the ETI’s operational life we wanted to reflect on the full experience. This summary report of that final review (based on the views of its management and detailed interviews with staff and stakeholders) should be viewed in the context of what we have learnt from the operation of the ETI and not the outputs of the organisation. This report concludes by highlighting a series of recommendations, covering three themes: What to consider in the establishment of a new energy related innovation organisation. The factors to consider in order to successfully run an innovation organisation. How to maximise the legacy and learnings from the ETI’s experience. These key findings reflect the context of the external environment the ETI has operated within.

The ETI was established in December 2007 with a ten-year remit to accelerate the development, demonstration and deployment of low-carbon energy technologies in the UK. It was the first time that a partnership model comprising major multi-national companies and the UK Government had been tested in the energy sector as a means of driving innovation. It was positioned to focus on the so-called "valley of death" between early stage research and development and commercial deployment. As the end of the ETI’s operational life approaches (the end of 2019), now is an appropriate time to reflect on the ETI journey so far and to assess what this might mean for UK energy innovation in the future. In that context, this document has two key purposes: To identify the key learnings from the operational experience of the ETI. To assess how these learnings might objectively inform energy innovation delivery vehicles in the UK in the future. This document also gives recommendations based on key learnings extracted by its findings and observations in the areas of: ETI's PPP (Public-Private Partnership) model, cultural identity, organisational effectiveness, delivering innovation, and delivery impact.

Without energy demand reduction we will not achieve the UK's Sixth Carbon Budget target in 2035 of 78% below 1990 levels, or our 2050 net-zero target. The UK Government has yet to define how energy demand will contribute to achieving our climate ambitions. Given the evidence presented in this report, it is imperative that the UK Government outline a detailed strategy and supporting policies to enable energy demand reduction to fulfil its necessary role in achieving rapid emissions reductions in the UK. The limited government focus on energy demand has mostly been on improving technology efficiency with little attention to the other mechanisms that involve reducing the need for energy service demands. Reducing energy demand to the extent, and at the speed, that is needed requires both an acceleration in energy efficiency improvement and shifts in the consumption patterns of products and services, travel and diets to avoid the consumption of energy services. None of our Low Energy Demand (LED) scenarios compromise our quality of life. Instead, they seek to enhance it with numerous co-benefits associated with healthier diets, active living, clean air, safe communities, warm homes, rebalancing work and driving down inequality. All this is possible while halving the UK's energy demand

Resource efficiency and energy efficiency were both considered for reducing energy demand for the production of materials and products. Resource efficiency strategies reduce the required output of materials and products. Energy efficiency strategies reduce the energy demand to produce each unit of output. Additionally changes in construction demand are an important driver of material production and associated energy demand.

This study, undertaken by the Centre for Research into Energy Demand Solutions (CREDS), provides the most comprehensive assessment to date of the role of reducing energy demand to meet the UK's net-zero climate target. The study brings together 18 energy demand modelling experts from within CREDS to provide extensive detail on the possibilities to reduce energy demand in every sector. These sectoral reductions in energy demand are brought together into a whole-system modelling approach, to understand the potential contribution of energy demand reduction to support climate action in the UK.

The primary focus of UK policy has been to change the vehicle fleet from petrol and diesel, first to ultra low emission vehicles (ULEVs), and then to zero-emission vehicles (ZEVs)1 , primarily through electrification. A lack of progress with heavy goods vehicles and aviation persists, but the unexpected change is the increase in new car energy consumption and CO2 (SMMT, 2018). Switching from diesel accounts for a small proportion of this increase; the main culprit is a continued swing towards larger passenger cars, particularly Sports Utility Vehicles (SUV), which use about 15% more energy than their hatchback or sedan equivalents. Electric vehicles accounted for 8.8% of sales in 2020 (up from 2.5% in 2019) (SMMT, 2020), with two out of five sold being plug-in hybrid electric vehicles (PHEVs). PHEVs have shown to perform little better in terms of energy use and carbon emissions than the most efficient conventional ICE vehicles in real world conditions, as they have been shown to operate in electric mode for only a third of the miles travelled (Plötz et al, 2018a; Plötz et al, 2018b; Plötz et al, 2020). This gap between declared vehicle performance and real-world results prevails across all vehicle types and technologies.

The Ten Point Plan will lay the foundations for a Green Industrial Revolution. The 10 points covered by this plan are: Advancing Offshore Wind; Drivng the Growth of Low Carbon Hydrogen; Delivering New and Advanced Nuclear Power; Accelerating the Shift to Zero Emission Vehicles; Green Public Transport, Cycling and Walking;Jet Zero and Green Ships; Greener Buildings;Investing in Carbon Capture, Usage and Storage; Protecting Our Natural Environment and Green Finance and Innovation