March 2019 News

Dear colleagues

Things are hotting up politically with a NSW state election in less than two weeks and the federal election less than two months beyond that.

Disappointingly, neither party in NSW has committed to a coherent energy/climate strategy to address the challenges ahead or exploit the opportunities from improving energy productivity that would make the state more competitive, provide reliable energy services and reduce carbon emissions. The central plank of Labor policy is to provide further subsidies for rooftop solar; a measure which is not only unnecessary and a poor use of public money, but will exacerbate electricity network problems and, further, is likely to be paid for by stripping the NSW Climate Change Fund (CCF). We await an energy efficiency policy. The Liberals started the current term strongly with a proposed energy and climate strategy but have somewhat lost focus. They belatedly allocated CCF money but too little was directed to help business improve energy performance, or to public information on smart energy use, and we’re still awaiting the energy/climate strategy.

In the lead up to the federal election the Coalition has announced a small energy efficiency package, as part of a mish/mash of energy and climate policies, that will not convince anybody they are on track to a rational long-term strategy. While we await detail of Labor’s energy efficiency and productivity policy offering, Mark Butler is clearly on top of his portfolio and Labor’s direction and intent is promising. We all need to work now to ensure Labor sees that energy productivity is just as important a plank in a successful national energy/climate strategy as renewables and is supported appropriately. The Saturday Paper feature last weekend should bring more attention to energy productivity in this mix – please share it.

We are excited about how the forthcoming Innovation X-Change is shaping up – it is going to be very stimulating and will provide insights from around the world on the energy transition. More here. I am looking forward to catching up with you there. The X-Change will bring together many of the organisations likely to participate in the energy productivity CRC bid (more below). This bid for a potential $150 million+ enterprise is coming together strongly and we would love to talk to you if you are interested to participate [jonathan.jutsen@a2ep.org.au or 0418 510 109]. 

All the best
Jon Jutsen, CEO, A2EP

In the news

The next Innovation X-Change is only 4 weeks away
It’s our event and it will be the best energy day of the year! If you’ve attended a previous X-Change then this one is like that on steroids – 3 parallel sessions, 4 international speakers from the US and Europe, a ‘fish tank’ session showcasing 10 awesome disruptor firms. Come yourself for only $275 or buy a table for colleagues and clients for $1650. More here.

The federal election and energy productivity? Not so much. Yet.
Minister for Energy Angus Taylor recently announced a $67 million package of measures directed to improve energy efficiency and reduce greenhouse emissions. The package included $50 million for an Energy Efficient Communities Program that will provide 2500 grants to businesses and community organisations for audits and upgrades. The remainder is directed to work in train by DoEE and COAG Energy Council including the extension of NABERS, further development of the Trajectory for Low Energy Buildings, reviews of the Commercial Building Disclosure program and Energy Rating program. A2EP welcomes the investment. However, we note that the country spends upwards of $120 billion each year on energy and that we’ve identified genuinely significant opportunities for cost-effective investment to build value from that spend. On the climate policy front, Prime Minister Scott Morrison has announced a Climate Solutions Package that includes a $2 billion extension of the existing Emissions Reduction Fund (to be re-badged as the Climate Solution Fund), support for Snowy 2.0 and pumped hydro in Tasmania and the development of a national electric vehicle strategy.

The alternative government...
has set out a more comprehensive and coordinated approach to energy and climate, but only as a sketch. Late last year Opposition leader Bill Shorten gave a landmark speech about energy futures. He promised 50% renewable energy and 45% emissions reduction by 2030. He reiterated his intention to revisit the National Energy Guarantee and the prospect of bipartisan support. He revealed a 10-year ‘energy investment plan’ drawn from the AEMO Integrated System Plan, offered a $10 billion capital injection for the CEFC and $5 billion for an ‘energy security and modernisation’ fund. He committed to extend the ARENA mandate to support energy productivity. He also offered $20,000 grants for manufacturers needing expert energy advice. He announced that Labor would target 1 million new residential battery storage systems by 2025 and support that target with a system of rebates. He cited research by The Australia Institute forecasting the creation of 60,000 jobs in parallel with a 50%/2030 emissions target. Acknowledging the impacts of change, he promised the establishment of a Just Transition Authority. 

National Energy Productivity Plan 2.0: What they should announce
Late in 2015 our federal and state governments committed to a National Energy Productivity Plan (NEPP) and targeted a 40% improvement in national energy productivity by 2030. Three years later the Commonwealth Government has neglected the NEPP, energy productivity has flatlined and there is no coherent national energy/climate policy framework to support the transition of our economy to its future state. We’ve rewritten the NEPP to address whole-of-economy issues including a framework and target, focus on a top ten list of priority measures, assess sector-specific approaches and back-of-envelope costing. We continue to lag behind other countries, developed and developing. The cost to the economy is huge. We spend about 8% of GDP on energy. If we double energy productivity, we could boost GDP by as much as 4%. Two contextual headlines: most of our housing stock (seven million homes) was built before standards for energy efficiency were introduced and, with Russia, we are one of just two G20 economies that does not require new vehicles to meet minimum efficiency requirements. NEPP 2.0 is available here as a draft for consultation and development. Please take some time to review the draft, or at least the part of most interest to you. Send comments to a2ep@a2ep.org.auor call us on 0419 256 339.

Is economic growth wedded to ever increasing energy consumption?
A group of British academics says ‘no’. They find that “gains in energy efficiency have contributed a quarter of all growth in UK GDP over the period 1971-2013. More here

RACE for 2030 launches website
A2EP is supporting a bid to establish a new Cooperative Research Centre with a focus on Reliable Affordable and Clean Energy. Find all the basic info about the bid on its new website: RACE for 2030.

Australian property companies lead on energy and climate
Australia’s Dexus, Cbus Property and Nightingale Housing, all signatories of the World Green Building Council’s Net Zero Carbon Buildings Commitment, are targeting net zero operating carbon emissions across their portfolios by 2030. Making smarter use of energy is essential for achieving this goal. More on EP100 here.

Energy productivity in agriculture
A2EP recently wrapped a project for the NSW Department of Primary Industries. We assessed potential to improve energy productivity in agriculture with a focus on intensive sub-sectors including dairy, feedlots and horticulture. The next steps involve demonstration projects. The report is available here.

Teys Australia makes Wagga Wagga plant self-sufficient
In response to soaring energy bills Teys recently revealed plans to develop a $42 million low emissions energy hub at its Wagga processing plant, which will involve bio generation, solid waste digestion, solar panels, energy storage and biomass boilers to produce steam. More here

Energy efficiency: A boost for employment 
New research commissioned by the Energy Efficiency Council and the Energy Savings Industry Association finds potential to create 120,000 new jobs in Australia. Green Energy Markets wrote the report. More here.

Energy services market thrives, led by China
Recently published IEA data reveals that the value of the global ESCO market grew 8% to USD 28.6 billion in 2017, up from USD 26.8 billion in 2016. China continues to underpin the global ESCO market, growing 11% to USD 16.8 billion in 2017. More here

Forthcoming
Smart Energy Conference, 02-03 April, Sydney More
A2EP Energy Productivity Innovation X-Change, 08 April, Sydney More
IREE Improving Residential Energy Efficiency, 15-16 April, Brisbane More
ECEEE Summer Study, 03-08 June, Belambra Presquile de Giens, France More
EEGlobal, 12 June, Washington DC USA More
Better Buildings Summit 10-11 July, Arlington USA More
ACEEE Summer Study on Industry, 12-15 August, Portland USA More
Energy Efficiency Expo 23-24 October, Melbourne More