NESS 10% target by 2030, 25 March 2019
ESIA analysis demonstrates how a National Energy Savings Scheme (NESS) target to achieve savings of 10% of electricity and gas by 2030 could be achieved. In 2020, existing schemes in Vic, NSW, SA and ACT have an equivalent target of 11,475GWh. In a scenario based on a linear trajectory, to achieve a 10% target by 2030, the 2020 target would need to increase by 8,324GWh which could be mobilised under a NESS. This significant increase from 2020 will provide a strong signal to the market to deliver energy efficiency upgrades sooner. Based on this scenario, by 2030 a NESS will deliver 39,415GWh energy savings a year by 2030.
A NESS could deliver energy savings from both electricity and gas equivalent in electricity terms to 4.5 times the annual output of Liddell coal-fired power station scheduled to close in 2022. This is based on a NESS target saving 10% of electricity and gas consumption y 2030 which will deliver 39,415GWh energy savings a year by 2030 and based on Liddell's average electricity output of 8,680GWh over the past two years.
A NESS is nothing new. The Commonwealth Government was working on implementing a national scheme in 2013. The Climate Change Authority recommended a NESS in 2017 and just seven days later, Finkel recommended that governments accelerate the rollout of energy efficiency measures. A NESS will spearhead a suite of complementary measures that are essential but take longer to mobilise including minimum energy performance standards for products and buildings at point-of-sale and rental, and regulations to phase-out inefficient products.
Existing state-based schemes provide proof of concept. A NESS will help more Australians save on their energy bills. Other recent analysis found that readily identifiable energy upgrades with quick paybacks would save Australians almost $8 billion in reduced bills and create more than 120,000 jobs.