Chapter 6: Energy Efficiency
Using energy more efficiently can lower carbon pollution and save money for households, business and community organisations. Small actions can make a big difference and there is considerable scope to improve energy efficiency throughout our economy. That is why promoting energy efficiency is a key part of the Government's plan for a clean energy future.
Through its package of energy efficiency programs, the Government is helping households to use energy more wisely and save money on their energy bills. The Government is also helping businesses become more energy efficient. These programs will not only drive smarter energy use in business, local government, households and communities, but will create new job opportunities and stronger local economies.
Many steps can be taken in households to improve energy efficiency and reduce the impact of the carbon price. These start with the design and construction of homes and move on to the way people live in them, how much energy they use and the decisions they make when selecting and using household appliances. Businesses across all industry sectors can also implement more energy efficient technologies and production systems, and become more competitive through the adoption of cleaner technology and by moving to less emission-intensive production of goods and services.
Achievements
- Community consultations on the Community Energy Efficiency Program, Low Income Energy Efficiency Program and Energy Efficiency Information Grants Program attracted strong interest. More than 700 people from an array of government, community and private sector organisations attended a series of information sessions around the country to explain the programs.
- Assessments of over 663 applications and expressions of interest are now underway for funding under the Energy Efficiency Information Grants Program, the Community Energy Efficiency Program, the Low Income Energy Efficiency Program and the Home Energy Saver Scheme.
- Full disclosure arrangements for large commercial office buildings under the Building Energy Efficiency Disclosure Act commenced on 1 November, 2011. This is a national program designed to improve the energy efficiency of Australia's large office buildings through the disclosure of up to date energy efficiency ratings.
- Low Carbon Australia Ltd continues to invest in a range of innovative financing deals, principally directed at energy efficiency retrofits in buildings.
- Further work on investigating a potential national Energy Savings Initiative is progressing, following a series of stakeholder workshops and consultation on an issues paper outlining possible design options. The feedback received is providing valuable input to the ongoing investigation, which will underpin the Government's consideration of whether or not to implement a national scheme.
- A discussion paper has been released for consultation on the design of Charities Maritime and Aviation Support Program.
Energy efficiency programs
Energy efficiency at home
Greenhouse and Energy Minimum Standards
The Australian Government is announcing $37.1 million in funding in the 2012‑13 Budget over four years to introduce a nationally-consistent legislative framework to regulate the energy efficiency of equipment and appliances. This measure addresses two important policy objectives of improving energy efficiency and reducing greenhouse gas emissions by consolidating seven state and territory legal frameworks into a single piece of Commonwealth legislation.
The Greenhouse and Energy Minimum Standards legislation will improve Australia's Equipment Energy Efficiency Program, which is forecast to deliver economic benefits of over $5 billion to households and businesses in 2020.
Low Carbon Communities: Low Income Energy Efficiency Program
The Low Income Energy Efficiency Program will provide grants to consortia of government, business and community organisations to trial approaches to improve the energy efficiency of low income households and enable them to better manage their energy use. $100 million will be provided over four years from 2012‑13.
Expressions of interest for the first round of the program closed on 16 March 2012. Initial assessments are underway and it is anticipated that successful consortia will be announced later this year.
Low Carbon Communities: Home Energy Saver Scheme
The Home Energy Saver Scheme ($29.9 million over four years from 2011‑12) will help around 100,000 low-income households improve their energy efficiency and financial sustainability. The package of assistance to low-income households will include: tailored in-depth assistance through home visits by trained workers, general energy efficiency and financial management information and advice; and access to the No Interest Loans Scheme to assist with the purchase of more energy efficient appliances.
LivingGreener
The Government is providing $5.5 million over four years from 2011‑12 to further expand and enhance the LivingGreener website to include more information about energy efficiency and managing energy costs. The website is supplemented by a household information and advice telephone service.
New content continues to be added to the LivingGreener website, including a range of new material on managing household energy costs. New guides on the site include: 'Reduce your energy bills' and 'LivingGreener with Home Entertainment and Technology'. A social media strategy is being implemented, with LivingGreener now on Twitter @Living_Greener and developing its Facebook presence.
Household Energy Survey
The Australian Bureau of Statistics is currently conducting a survey to gather and communicate data on household energy consumption (including behaviours that affect consumption) and expenditure. The survey is collecting data to support innovative solutions to improve household energy efficiency and the design of new energy efficiency policies. The final survey results are expected to be released in September 2013.
Helping communities save energy
Low Carbon Communities: Community Energy Efficiency Program
The Community Energy Efficiency Program ($200 million over four years from 2011‑12) will provide matched funding to local councils and not-for-profit community organisations to undertake energy efficiency upgrades and retrofits to council and community-use buildings, facilities and lighting. The program will demonstrate and encourage smarter energy use.
Applications for round one funding closed on 23 March 2012. Assessments are underway and it is anticipated that applicants will be notified of the outcomes in May 2012.
Low Carbon Communities: Charities Maritime and Aviation Support Program
The Charities Maritime and Aviation Support Program ($23 million over five years from 2012‑13) will offer a rebate for the carbon price impact on essential maritime and aviation fuels used by organisations such as air and sea rescue services. This recognises the important role that charitable organisations play in providing essential services to communities, in particular aero-medical and search and rescue services.
Submissions on a discussion paper seeking feedback on the proposed design of the program closed on 13 April 2012. Program guidelines are expected to be released in May 2012 with rebate applications likely to be accepted from June 2012 for the period commencing 1 July 2012.
Remote Indigenous Energy Program
The Remote Indigenous Energy Program ($40 million over five years from 2011‑12) will help smaller remote Indigenous communities access affordable and reliable 24-hour power supplies. This will improve the reliability of the energy supply for these communities and contribute to improvements in health, education and long-term economic viability.
The Program will support the installation of renewable energy generation systems in up to 50 smaller remote Indigenous communities across Australia. It will also include training in basic system maintenance and the provision of energy efficiency education to community householders to encourage ongoing energy management. This will make a significant impact on those communities which currently rely on diesel generators for their power supplies. In 2012—13, five systems will be installed, followed by approximately 15 installations a year for the next three years, to 2015-16.
More fuel efficient cars
The Government will introduce mandatory carbon dioxide (CO2) emissions standards for new light vehicles, starting in 2015. The standards will complement the Government's carbon price and help to reduce carbon emissions from light vehicles. Mandatory CO2 standards are internationally recognised as one of the most cost effective strategies to reduce transport emissions.
Comments on a public discussion paper closed on 9 December 2011. Key issues discussed in the paper were the emissions target(s) to be established under the standards and the most appropriate regulatory framework for implementing the standards.
The views received in response to the discussion paper are helping the Government to develop an implementation Regulation Impact Statement, which will set out options to implement the new standards. The Regulation Impact Statement will also include a benefit-cost analysis and will be formally released for public comment in the second half of 2012.
Energy efficiency in business
Continuation and expansion of Energy Efficiency Opportunities
The Government's Energy Efficiency Opportunities (EEO) program encourages large energy-using businesses to improve their energy efficiency. It does this by requiring businesses to identify, evaluate and report publicly on cost effective energy savings opportunities. Under its plan for a clean energy future, the Government is expanding the EEO program to include energy generators, transmitters and distributers.
Submissions on options papers for extensions to both the greenfield and major expansion projects, and electricity and gas networks closed in March 2012. Comments received are informing the development of a Regulation Impact Statement and proposed changes to the EEO regulations. The Government aims to have the relevant EEO regulations in place by 1 July 2012.
Energy Efficiency Information Grants Program
Clear information from trusted sources will be vital in helping small and medium enterprises and community organisations improve their energy efficiency. The Government is providing $40 million over four years from 2011‑12 for the Energy Efficiency Information Grants Program. Grants will be provided to assist industry associations and non profits provide practical, tailored energy efficiency information to small and medium enterprises and community organisations.
Applications for round one funding closed on 16 March 2012. Applications are being assessed and it is anticipated that successful applicants will be announced in May 2012.
Energy Efficiency in Buildings
The Government's 2012‑13 Budget includes an additional $2.8 million over the forward estimates in funding for a range of building energy efficiency activities, including the maintenance and improvement of building related regulatory and information disclosure schemes.
This funding supports a package of programs that deliver cost-effective abatement in the building sector. These include administering the Nationwide House Energy Rating Scheme (NatHERS), maintaining the implementation, monitoring and compliance of the Building Energy Efficiency Disclosure (BEED) Act and contributing to measures in the National Strategy on Energy Efficiency.
The Government is also implementing the Energy Efficiency in Government Operations program. This program aims to reduce the energy consumption of Australian Government operations with particular emphasis on building energy efficiency. It includes energy efficiency targets for Government agency office buildings and a requirement for a Green Lease Schedule to be included as part of the lease agreement for a new Australian Government office building. Green Lease Schedules help landlords and tenants agree on steps to improve and maintain energy performance.
Working towards a national Energy Savings Initiative
The Government is expediting the development of a potential national Energy Savings Initiative (ESI). An ESI is a market-based tool for driving economy-wide improvements in energy efficiency. It could help business and household consumers reduce their power bills by encouraging the take-up of energy efficient technologies.
The Government established a working group to report on possible design options for a national ESI. Public comment on an issues paper released by the working group closed on 27 February 2012 and the feedback is providing valuable input to the ongoing investigation. The working group has commissioned economic and energy market modelling to inform a Regulation Impact Statement, to be released for public consultation in the second half of 2012.
The Government's decision on whether to implement a national ESI will be based on the outcomes of this work, including a benefit-cost analysis, the Regulation Impact Statement and consultation processes.
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