EECCA Energy Savings Schemes Industry Report 2016-17 & Members Directory

EECCA Energy Savings Schemes Industry Report 2016-17 & Members Directory

This definitive report provides a ready reference for energy savings schemes across Australia. It is a must-read for anyone working in the schemes and for policy makers considering an energy savings scheme locally or nationally.

Report highlights include:

  • Net economic benefits of existing schemes;
  • Demand reduction - proven and potential;
  • Lighting technology transformation case studies;
  • Scheme snapshots - how targets are being exceeded and major types of installations;
  • New comparisons of schemes’ targets - MWh per annum and per capita comparisons;
  • Combined greenhouse gas abatement of 12.4Mt/a by 2020;
  • How 50 per cent of Australia's emission reduction target attributable to the electricity sector’s fair portion could be met through improved energy efficiency delivered via the schemes; and
  • A directory of all EECCA members.

Executive Summary

Policy makers and future thinkers need to grab this energy savings scheme industry report with both hands. It shines a spotlight on the schemes operating in VIC, NSW, SA and ACT. These schemes are a proven success across Australia. They are providing rapid and long-term relief to the energy crisis trilemma. They are one of the few mechanisms that are actually delivering downward pressure on peak and base load demand and energy prices, providing energy bills relief and delivering on their emissions reductions targets - and at lowest abatement cost. They are the key support mechanism for energy efficiency in Australia and reduce the cost of meeting renewable energy targets and other climate change policy commitments.

Providing rapid and long term relief

Preliminary analysis by the ESIA indicates that the amount of energy savings that could be delivered by mass roll out of LED non-high bay lighting technology is more than equivalent to the capacity contribution in 2016 of Liddell coal-fired power station in NSW (scheduled for closure in 2022). There’s a similar comparison with Hazelwood, which closed this March. Demand reduction attributable to the schemes was on par with the contribution of roof top solar PV in 2016.

Capacity of Liddell and Hazelwood equivalent to energy savings from mass LED lighting rollouts

Scheme deliverables wouldn’t otherwise be happening because of ongoing market barriers. Research shows that uptake of more energy efficient activities are likely to stall without the schemes. The schemes provide financial incentives for millions of households and businesses to install more energy efficient activities. Many energy savings contributions add up to significant and compounding impacts over time. This results in benefits for scheme participants and non-participants as economic and broader benefits are provided across the jurisdiction of the scheme. A key challenge is that legacy energy market supply stakeholders stand to lose out. And there are no equally powerful demand side commercial beneficiaries that stand to gain from a paradigm policy shift. So advocacy for balanced demand side policy remains comparatively non-existent.

balanced demand side policy remains comparatively non-existent

Current energy savings schemes exceeded their 2016 targets as they have generally done since their inception in 2009. They have delivered greater net economic benefits than predicted and at lower than expected cost. This is only the tip of the opportunity. The schemes are creating thousands of new jobs and future-focussed industry skills. We are not far from 2020 end-dates of set targets for existing schemes and need policy settings to provide market certainty to keep driving rapid uptake. We need to significantly upscale and expand access to more technologies and services across Australia. Currently the major installation activity is lighting which is booming on the back of once-in-a-generation technology transformation of the LED lighting market. With better-tailored scheme incentives, we will see greater uptake of other major energy saving activities, like efficient air conditioning, which will provide scope for much bigger targets. New business models are delivering major market disruption with product suppliers marketing direct to end customers and delivering additional cost savings.

Our international ranking on energy efficiency and our energy use per capita are an embarrassment. We can turn this around. As we move to a cleaner energy future, with expanded schemes we can confidently predict that as old coal-fired power stations are shut down, we can offset demand through reduced consumption. We call on our politicians for bi-partisan support to expand and extend current schemes and introduce schemes in Qld, WA, NT and Tas. This is the best way to keep the momentum and benefits flowing as we prepare for and dovetail with a national scheme, as recommended by the Climate Change Authority.

expand and extend Vic, NSW,SA and ACT … introduce to Qld, WA, NT and Tas with a NESS

(Full Report including case studies in full colour pp 47-65, 21MB PDF)
(Report excluding case studies pp 47-65, 3MB PDF)



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