September 2019 News

Greetings fellow energistas

It has been an incredibly rich and full last six weeks. Last week we had a very productive visit with the German MP Carsten Mueller. Carsten is also the chair of DENEFF, our partner organisation in Germany. Carsten discussed Germany’s Energiewende (energy transition) with ministers Matt Kean, Mathias Cormann and Angus Taylor, noting that the framework now has ‘energy efficiency first’ as its mantra, in line with Europe.

Deeply dissatisfied with only reducing carbon emissions by 36% by 2020 (target 40%), the new German Climate Cabinet met last Friday under Chancellor Angela Merkel to support a AUD$70 billion further package of climate policies aimed at getting Germany back on track to meet its goal of reducing greenhouse gas emissions 55% by 2030! A cornerstone measure is a carbon price which will raise to 35Euros/tonne (AUD$57/tonne) by 2025 and transition to a trading system. This is a contrast with Australia’s ‘meet our 26% target at a canter’ rhetoric.

Thank you, Carsten Mueller, for your amazing efforts including formal events with A2EP and German associations, EEC, GBCA and government officials in two states and the Commonwealth. We intend to ensure the initial impact of his visit is followed through.

I had a very worthwhile trip to US last month, spending time with Amory Lovins and the team from RMI (Rocky Mountain Institute) and Richard Adams and a day at NREL (National Renewable Energy Labs), and speaking at the ACEEE Summer Study on Energy Efficiency in Portland. I prepared a detailed trip report which we distributed to members (please email a2ep@a2ep.org.au if you'd like a copy). Here are some observations:

• Despite (perhaps due to) President Trump trying to wind back many energy efficiency regulations and innovation spending, the ACEEE conference had record attendance and was very positive about the role for energy efficiency. The proceedings are available online here.
• A highlight was spending time with Amory Lovins discussing transformative energy productivity and hearing his remarks at the ACEEE conference. His presentation is linked here.
• There was a lot of focus on SEM (strategic energy management, see note below) in utility efficiency programs. NSW is developing a program at present which seems very similar to SEM. I played a key role in initiating SEM, and 15 years after my US stint there are now more than 30 SEM programs, saving over 1000 firms 324GWh and 9 million therms.
• There was a great deal of interest in our innovation work. I spoke in one session and then led a separate informal session on our work on value chains, heat pumps and electrification, load flexibility, cold chain optimisation and Industry 4.0.

We are pleased to be the Australian agent for the EP100 program, a global voluntary commitment program through which companies commit to improve their energy productivity. You may recall our efforts a few years ago to set up a similar program in Australia. Please see info about what it takes to join EP100 and get global recognition here. We will be launching EP100 formally in Australia later this year.

On the Cooperative Research Centre bid (CRC RACE for 2030), I am now formally the interim CEO and we’ve just heard that we are shortlisted. This is encouraging news  

In the news

Renewables for process heat: A2EP & Climate-KIC & Opportunities
ARENA has announced funding to test smarter ways to apply heat in manufacturing. Process heat currently accounts for the largest share of fossil fuel use in Australian manufacturing. The project has been underway since February and is well advanced. The project has identified demonstration sites that can integrate renewable energy technologies into existing industrial heating processes. We’ve completed 10 pre-feasibility studies and commissioned five feasibility studies that will come complete with business cases. We’re partnering with Climate-KIC and supported by Sustainability Victoria and the Department of Planning, Industry and Environment NSW (formerly the Office of Environment and Heritage). ARENA will contribute $460,500. The total project value is $900,500. The project is scheduled for completion in May next year. A summary of the project is here. The media release is here. ARENA has recently rejigged its investment priorities. One of the three priorities is Supporting industry to reduce emissions; more on that here.

Energy efficiency solutions for farms: A2EP & NSW DPI
Last year NSW DPI commissioned us to scope opportunities for energy productivity improvement in the NSW agriculture sector. The report is available here. The next phase of the project is now underway. NSW DPI has called for requests for proposals for studies of innovation approaches to energy on farms; consumption, production, integration. Up to ten studies will be funded for up to $50,000 each. 
Background to the Energy Efficiency Solutions Project is here. Background to the Climate Change Research Strategy is here. Details of the Request for Proposal process are available online here including an information pack and application form. The deadline for lodgement of proposals is Monday 21 October. Please direct any questions about the RFP to Michael Cashen at NSW DPI: michael.cashen@dpi.nsw.gov.au.

The often-overlooked emissions reducer
Global efforts to bring down emissions are top of the agenda at the UN Climate Action Summit, which takes place in New York this week. The IEA is putting particular emphasis on the need for urgent global action on energy efficiency. This critical but often overlooked area can deliver major reductions in emissions while supporting economic growth, reducing air pollution and also saving consumers money.
Energy efficiency could bring energy-related CO2 emissions in 2040 to levels that are 12% lower than today; this would represent over 40% of the emissions abatement required to meet the Paris Agreement. But despite this huge potential, efficiency progress is slowing. Global energy intensity – the amount of energy required to produce one unit of economic output – improved by just over 1% last year, well below the 3% needed to meet global sustainable energy goals.
More than ever, a global push is needed to improve efficiency. This summer, the IEA announced a high-level Global Commission for Urgent Action on Energy Efficiency, which will produce a set of clear, actionable recommendations for change.

The Three Per Cent Club: Global efficiency goals
Exciting news from the United Nations Climate Action Summit in New York this week: A coalition of countries, businesses, and institutions – including A2EP – announced a joint commitment to work together to drive a three percent annual global increase in energy efficiency. It’s an important step forward for reducing greenhouse gas emissions. And the IEA estimates that delivering on the three percent target would bring global household energy savings of $500 billion per year by 2040. More here.

Manufacturing modernisation fund open for business
The federal government has opened its new program for ‘capital investments and associated reskilling to modernise manufacturing processes, adopt new technologies, become more productive and create jobs’. The $50 million fund provides co-funding in range $50,000 to $1,000,000 for small to medium sized firms. Intended outcomes - for projects and the program - include job creation and improved competitiveness. More here.

Minister Taylor launches assistance for energy consumers
Federal energy minister Angus Taylor recently launched two programs to help business consumers with energy bills. First up is checkyourenergyspend.com.au an online benchmarking tool. It draws on deep data from Xero, the cloud-based accounting application. It aims for simplicity and compares businesses by type, location and size. It has a focus on retail energy contracts and tariffs… asking in effect “are you on the right deal?” But it’s also a gateway to thinking about consumption.
The other element of the initiative is an advice service - businessenergyadvice.com.au- delivered by Australian Business (led by the NSW Business Chamber). It’s a tailored service delivered by experts. The Minister’s remarks are here.

If you missed it
In the fast-paced energy sector it’s easy to miss developments, especially good news. Here are some stories that tell the story.

New York has set the most ambitious climate target in the USA:carbon-free electricity by 2040 and a net-zero carbon economy by 2050. More here

Infrastructure Australia finds energy prices are adversely affecting international competitiveness and domestic equity. More here

Fresh off the press: A new guide to help farmers use energy more efficiently, switch to renewables and save money. CEFC and NFF, More here

Demand for electricity is becoming more dispatchable.Load flexibility could satisfy up to20% of US peak demand, saving $15 billion a year by 2030. More here

The retail sector is often regarded as an energy effectiveness laggard. Not in this vicinity. One leading operator targets net zero carbon emissions by 2030. More here

The national forum of building ministers, guardian of the construction code, sets a course towards higher residential standards. More here

Shell drives into electricity. And mobility. In Australia. Thus furthering its ambition to become the largest electricity company in the world. More here

The swings and roundabouts of public sentiment on climate change are gauged by The Australia Institute. More of us are concerned, more of us want action. More here

Know more
Strategic energy management? One of the buzz-concepts of the moment. Know more about SEM. Go here and here. And, for an Australian flavour, here.

Forthcoming
Energy Efficiency Australia Expo and Conference 23-24 October, Melbourne More
All-Energy Australia Expo and Conference 23-24 October, Melbourne More
ACEEE Energy Efficiency as a Resource 15-17 October, Minneapolis More
ECEEE Valuing the Multiple Benefits of Energy Efficiency 28 October, Berlin More

For training and development with a focus on energy efficiency, the Energy Efficiency Council delivers. Calendar and other details here.

NSW DPIE (formerly Office of Environment and Heritage) offers a range of courses for business including Energy 101 for Small Business. The courses are presented at locations around the state and by webinar. Many are free of charge and some are supported by interpreters. More here