Government Energy Efficiency Perspective 2013
Subho Banerjee
Deputy Secretary
Department of Resources, Energy and Tourism
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Overview
• Australia’s economy and the industrial sector are facing
major challenges – leading to a renewed focus on
productivity
• The industrial sector has made major improvements in
energy productivity in recent years – and significant
opportunity remains
• Government remains committed to working with industry to
unlock greater energy productivity gains
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
The future holds some challenges for
Australian industry
Rising costs of
energy –
electricity, gas
and oil
Transforming
to compete in
a low-carbon
world
Competitiveness
Growing
beyond the
mining boom
Improve energy
productivity
Commodity
price volatility
Australian
dollar
uncertainty
Increasingly
complex
regulatory
environments
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Energy prices have risen and are
forecast to continue rising
Electricity and Gas price indexes (adjusted for inflation)
120
110
Index 1990 = 100
100
90
80
70
60
Business Electricity
Business Gas
Source: Australian Bureau of Statistics
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Gt
Energy efficiency is important for achieving
global emission reduction targets
38
New Policies Scenario
36
34
Energy efficiency
measures
32
30
28
26
24
450 Scenario
22
20
2010
2015
2020
2025
2030
CO2 abatement
Activity
End-use efficiency
Power plant efficiency
Electricity savings
Fuel and technology
switching in end-uses
Renewables
Biofuels
Nuclear
CCS
Total (Gt CO2)
2020 2035
2% 2%
18% 13%
3% 2%
50% 27%
2%
3%
15% 23%
2% 4%
5% 8%
4% 17%
3.1 15.0
2035
Source: IEA, World Energy Outlook 2012
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Overview
• Australia’s economy and the industrial sector are facing
major challenges – leading to a renewed focus on
productivity
• The industrial sector has made major improvements in
energy productivity in recent years – and significant
opportunity remains
• Government remains committed to working with industry to
unlock greater energy productivity gains
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Australian industry has made major
energy efficiency improvements
Mining
Manufacturing
Oil and Gas
Commercial
Transport
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Significant opportunities remain to
capture further savings
Mining, manufacturing & transport identified savings
= 11.4% of their total energy use
Implemented
Potential for further
savings?
% of identified savings
40%
60%
% of total energy use
4.8%
6.6%
$ savings per year
$1.2b
$2.1b
Source: Industrial Energy Efficiency Data Analysis Project
How much of the identified potential can be unlocked?
How to facilitate uptake of that potential?
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Overview
• Australia’s economy and the industrial sector are facing
major challenges – leading to a renewed focus on
productivity
• The industrial sector has made major improvements in
energy productivity in recent years – and significant
opportunity remains
• Government remains committed to working with industry to
unlock greater energy productivity gains
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Government is working to further understand factors
affecting industry investment in energy productivity
• ‘Tracking Australia’s Progress Towards a Low Carbon Economy’
— Power
— Industry
— Buildings
— Land use
— Waste
• In-depth analysis of industrial energy efficiency activities
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Companies report that three practices in
combination increase energy efficiency outcomes
Source: Tracking Progress Towards a Low Carbon Economy
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY
Government is committed to working with
industry to further unlock energy productivity
Industry
opportunities
Factors affecting
investment
Government
support
Financial incentives
Energy productivity
Competiveness
Investment
Project
attractiveness
Information and
skills
Capability
Resources
Business systems
Business processes
Motivation
Data
Technology
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EEO Program is evolving to better enable
business outcomes
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Thank you
ENHANCING AUSTRALIA’S ECONOMIC PROSPERITY