Energy Efficiency Council - Efficiency Providers | Energy Users | Australia

Efficiency Insight - December 2020

Efficiency Insight is the Energy Efficiency Council's monthly energy management update for members, partners and stakeholders.

Video update from the Council's CEO, Luke Menzel

We're nearly there folks. 2020 is almost a wrap, and it has finished with some big news on the energy management front. In this month's short video update I recap the major announcements from around Australia as governments embrace the power of energy efficiency as a key plank of Australia's economic recovery.

And while the holidays are just around the corner, we have some fantastic virtual events coming up next week that you won't want to miss:

• An exclusive webinar on Victoria's big boost to the Greener Government Buildings (GBB) program with Victorian Assistant Treasurer the Hon. Danny Pearson MP; and
• A joint webinar exploring Australian-German collaboration on energy efficiency in buildings with the German-Australian Chamber of Industry and Commerce.

Read on for more policy and budget analysis from Rob, a recap of the highlights from the National Energy Efficiency Conference 2020 and a profile of our 2020 Energy Efficiency Champion, Kellie Caught.

Kind regards,

Luke Menzel
Chief Executive Officer
Energy Efficiency Council

Connect with Luke on LinkedIn and follow him on Twitter.

Contents

Policy and budget update from Rob Murray-Leach

Conference wrap: 

Efficiency Leaders with Kellie Caught

Welcome to the new Energy Efficiency Couincil Members

Wonderful webinar Wednesday

Energy briefing: the Energy Efficiency Council’s business engagement campaign

To subscribe to receive future editions of Efficiency Insight direct to your inbox, click here.

Policy and budget update 

Rob Murray-Leach, Head of Policy, Energy Efficiency Council

In the last two months the Victorian Government announced major policies that have made it the bona fide national leader in energy efficiency.

While Victoria’s leadership is indisputable, there have been huge announcements around the country as governments turn to energy efficiency to create jobs, improve heath, cut bills and cut emissions. In total, government announcements this year will result in over $1 billion of investment in energy efficient equipment and services. 

These announcements follow an extraordinary advocacy effort by a coalition of welfare organisations, environment groups and business associations, who joined forced to argue that energy efficiency should be at the centre of Australia’s stimulus.

Victoria

On 24 November, the Victorian Government budget committed to:

• $5.4 billion to build 12,000 public homes that are 7-star efficiency;
• $335 million to install high-efficiency heat pumps (reverse cycle air conditioners) in 250,000 low-income households;
• $112 million to upgrade the energy efficiency of 35,000 existing social housing properties;
• $60 million for energy efficiency in government operations;
• $31 million in grants to help industry improve its energy management;
• $21 million for community groups to invest in clean energy upgrades, including energy efficiency;
• Minimum rental standards for residential rental properties; and
• Support for builders to develop 7 Star residential buildings, in line with a shift in the National Construction Code (basically a commitment to higher standards for new residential developments).

The details of many of these programs are being finalised as we speak, but the Government has already released the details of its $31 million Business Recovery Energy Efficiency Fund (BREEF). The BREEF includes $24 million for Capital Works Grants for measures such as purchasing and installing energy efficient equipment, and $7 million for Energy Demand Management Grants, which covers some capital costs services such as energy audits, professional advice and implementation of energy management.

While these grants are aimed at large energy users, the Victorian Government has confirmed that to be eligible companies only need to consume 40MWh of electricity a year, rather than have a peak demand of 40MW.

We strongly encourage people to apply for these grants as soon as possible. The government has only announced two rounds of funding, with applications for the first phase closing on 31 December 2020 and the second phase closing on 31 January 2021. While it is possible that the government may consider future rounds of funding, this is by no means certain.

Not content to rest on its laurels, the Victorian Government has also made a raft of announcements relating to its Victorian Energy Upgrades (VEU) Program, which requires energy retailers to effectively fund a certain amount of energy efficiency activity each year.

Due to the extraordinary success of Victoria’s efforts to contain COVID-19, on 2 December the Victorian Premier announced that the state would move to the last step of its roadmap to reopening the state. While businesses still need to have up-to-date COVIDSafe Plans for each workplace, residential activities and doorknocking for lead generation are now permitted. 

Then on 8 December the Victorian Government announced that it would significantly raise the target for the. The targets for the VEU for 2022 to 2025 will be:

• 6.7 million certificates in 2022
• 6.9 million certificates in 2023
• 7.1 million certificates in 2024
• 7.3 million certificates in 2025.

These are the targets that were proposed by the Victorian Government in late 2019, but the announcement on the targets was delayed due to COVID-19. These targets represent a roughly 13 per cent expansion in the number of certificates generated by the VEU over the period 2021-2025 compared to 2016-2020, but changes in the emissions factors for electricity could result in a very significant expansion of the program. More information on the VEU targets can be found here.

Australian Capital Territory

On 2 November the ACT Government released a Parliamentary Agreement between ACT Labor and ACT Greens which made a number of significant commitments in relation to energy efficiency, including:

• $50 million over five years to improve the energy efficiency and sustainability of social and low-income rental houses;
• Implementing a program of zero-interest loans of up to $15,000 for households and not-for-profit community organisations to invest in clean energy upgrades, including energy efficiency;
• Minimum rental standards for residential rental properties in 2021 with progressive implementation over the coming years;
• Stronger energy efficiency standards for new buildings; and
• Transition towards all-electric new homes and infill developments.

It is notable that both Victoria and ACT have significantly invested in upgrading social and low-income housing, which will deliver very large health benefits. In New Zealand, every dollar invested in upgrading vulnerable homes through the ‘Warmer Kiwi Home’ program has been estimated to deliver over $7 in benefits, largely through reductions in health costs. However, upgrading social housing can also act as an important incubator to develop the residential retrofit industry. While many households wouldn’t even know where to start in terms of engaging experts, governments can demand high quality of service.

It is also notable that both Victoria and the ACT have committed to providing minimum standards for rental homes. While this will help lower energy bills, just as critically it will ensure that more Australians live in homes that are safe in both summer and winter. We hope that more jurisdictions will follow the example set by Victoria and the ACT.

South Australia and Queensland

South Australia has become a global leader in clean energy, and is now turning to energy management to ensure that energy is affordable and reliable. On 10 November, the South Australian Government committed $60 million to upgrade the energy efficiency of government buildings – this is easily the largest per capita investment in energy efficiency in government efficiency in Australia.

The announcement was welcomed by an extraordinary coalition of groups, including the Property Council of Australia, Climate Council, Conservation Council of South Australia, Energy Efficiency Council, Green Building Council of Australia and Australian Sustainable Built Environment Council.

With the Victorian Government also committing $60 million to improve the energy efficiency of government buildings, and the Queensland Government committing $30 million for energy efficiency and clean energy in hospitals, the government energy efficiency sector has been completely turbocharged.

On 26 November the South Australian Government also gazetted the regulations that will underpin their Retailer Energy Productivity Scheme (REPS), which will replace the Retailer Energy Efficiency Scheme (REES). While the transition from REES to REPS has been challenging, I’d like to recognise the significant effort that the South Australian Government has made to turn this around.

Federal Government

As I discussed in our October newsletter, on 6 October the Federal Government’s budget committed to:

• $1.4 billion in core funding for ARENA
• $96.5 million over six years to a Technology Co-Investment fund to help business adopt technology that increase productivity and reduce emissions, with around $68 million spent via ARENA. The details of this policy are unclear.
• $12 million in grants to upgrade the efficiency of small hotels and pubs;
• $12 million in grants to upgrade the efficiency of community facilities; and
• $28 million for a range of unspecified energy efficiency measures, such as the NABERS program and Low Emissions Trajectory for buildings.

The Government has been working to develop the details of many these programs, and we expect more announcements in the coming months.

Global

The International Energy Agency has released its annual report on energy management issues, Energy Efficiency 2020. This report highlights the major risk that the recession related to COVID-19 could reduce business investment in energy efficiency, but also highlights the potential role that government policy can play in driving up energy efficiency and creating jobs. This report is essential reading for everyone in the sector.

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Wrap of the National Energy Efficiency Conference 2020
 

We've been overwhelmed with the positive feedback around the National Energy Efficiency Conference 2020. With over 575 registered attendees, five ministers an absolute stellar line-up of local and international experts, this was easily our largest conference to date.

There was a huge amount of nuance and detail in the 23 sessions, and I strongly recommend that people who weren’t able to attend the conference purchase the Access Pass which will enable you to watch all the recordings and download presentations.

Looking back, six key themes emerged from the Conference this year.

Energy efficiency is smart stimulus

The first is that governments around the world are turning to energy efficiency as a critical form of stimulus. As the International Energy Agency have said, energy efficiency is a jobs machine, but it also boosts the long-term wellbeing and productivity of Australia. Closer to home, Victoria announced the largest package of investments in energy efficiency in Australian history and other ministers echoed this sentiment:

“Victoria is putting energy efficiency at the heart of its economic recovery – it’s a big bang for our investment buck.” 

Hon Lily D’Ambrosio MP, Victorian Minister for Energy, Environment and Climate Change  

“We need to build back better. We need to make sure we come out of this pandemic better than we did. We can do this by implementing measures like energy efficiency to deliver cheap electricity and productivity.” 

Hon Matt Kean MP, NSW Minister for Energy and Environment 

“There’s a real consensus in Canada that energy efficiency is a key pathway to economic recovery and job creation.” 

Joyce Henry, Director General, Office of Energy Efficiency, Natural Resources Canada

Health benefits are huge

The second key message is that retrofitting buildings will be a key part of stimulus, in part because of the enormous benefits to health and wellbeing. Europe is aiming high with a retrofitting wave, but it is far from alone.

“Every dollar spent on residential retrofits in New Zealand is delivering $4.50 in benefits” 

Andrew Caseley, Chief Executive, Energy Efficiency and Conservation Authority, New Zealand 

Energy management is the new black

Third, there are huge opportunities for business if they adopt energy management systems. The global experience is that while ISO 50,001 provides a gold standard for energy management for larger energy users, for many smaller energy users it makes sense to adopt simpler energy management systems. However, a key element of better energy management is moving away from payback period to lifecycle savings.

"The more you invest in being as efficient as possible, the more you invest in your future competitiveness”

Connie Hedegaard, former European Commissioner for Climate Action

The big shift to electrification is underway

Fourth, rising gas prices, climate change and rapidly evolving technologies are fundamentally shifting us towards electricity. Many developers are already building all-electric homes, and emerging technologies are making it easier for businesses to transition off gas. While governments will play a key role in this transition, households and businesses themselves are major drivers in the move to electricity. 

“We can create a future without gas. We will work with households and businesses to make that transition over the next couple of decades. We are already seeing a considerable consumer-led move away from gas”

Hon Shane Ratternbury MLA, ACT Minister for Water, Energy and Emissions Reduction

We need to put efficiency at the heart of our energy markets

Fifth, our electricity systems themselves are transforming. The rapid uptake of solar PV and other variable forms of generation are placing a real premium on ‘demand flexibility’ – not just reducing demand during peak periods, but also increasing demand to absorb the output of solar PV in the middle of the day. Large energy users can already access cost-reflective wholesale prices to cut their energy bills, but to optimise our energy system we need further changes to both put ‘efficiency first’ and embrace flexible demand.

“Every customer can participate in the market and be smarter about buying and using energy”

Matthew van der Linden, CEO, Flow Power 

“The principle of ‘Efficiency First’ gives priority to demand side resources whenever they are more cost effective from a societal perspective than investments in energy infrastructure.”

Dr Jan Rosenow, European Program Director, Regulatory Assistance Program

“It’s clear that we need to upgrade the energy efficiency scheme to an energy productivity scheme. We need energy productivity as much as we need to reduce energy consumption”

Hon Dan van Holst Pellekaan MP
South Australian Minister for Energy and Mining

Energy efficiency has a crucial role in the transition to net zero emissons

Finally, we heard from both global and local leaders about major businesses and governments setting serious goals to move to net zero emissions in order to address climate change. There are a plethora of good reasons to focus on energy efficiency, including job-creation, productivity and improved health. However, investment in energy efficiency will be cemented in coming years by its central role in meeting climate goals.

“Australia will need to transition – seventy percent of our trading partners have net zero goals”

Zali Steggall, OAM MP
Federal Member for Warringah

Welcome to new Energy Efficiency Council Members

2020 has been a year like no other. As the world grapples with the economic impact of the COVID-19 pandemic, governments around Australia have recognised the value of energy efficiency as both economic stimulus, and as a way for government to reduce its own costs - see Luke's CEO update above.

The Energy Efficiency Council - along with our formal NGO Partners and other partners - have been instrumental in prosecuting the idea of an efficient recovery, and supporting government with developing policies and programs that do just that - see Rob's policy update above.

We wouldn't be able to undertake the important work that we do without the support of our members. Of course, membership enables the Council to advance its advocacy agenda, but members' involvement in task groups ensures that we're advocating for the best outcomes for the energy management industry.

And our strong and growing membership base only strengthens our messages. We’d like to thank all of our existing members for their ongoing support and commitment to our vision - especially in these unprecedented times - and we are delighted to welcome our newest members to our growing community:

Corporate

Pedleys Solar

Pedleys Solar was established in 1978 as a local electrical services company. Our commitment to our clients and employees is the driving force behind its growth, which has allowed Pedleys to provide communities with exceptional workmanship for more than 40 years. 

Thanks to Pedleys highly trained team of CEC Accredited electricians, they are able to offer the highest standard of workmanship in locations all over South East Queensland and Northern New South Wales.

Associate

Energy Efficiency Group

Energy Efficiency Group (EE Group) encompasses a number of companies operating across Australia, including:

• Insulation Extract, a Perth-based insulation removal and installation company;
• Perth Gutter Guards, Perth's premium installer and supplier of gutter guards and roofing products in Western Australia;
• WA Insulation, the trusted Insulation providers for both residential and commercial builders in Western Australia; and
• Brisbane Insulation, the trusted provider for insulation services throughout Queensland.

Enviroflex

The Enviroflex team are dedicated insulation specialists committed to improving thermal and acoustic comfort and reducing energy costs and carbon footprints. All staff are trained by the Association of Wall and Ceiling Industries (AWCI) and its manufacturing partners to ensure optimal results.

Enviroflex partners with several government programs improving insulation in Department of Human Services homes, a variety of rebate programs and they support charitable initiatives to assist people who are marginalised.

Today Enviroflex produce cellulose for manufacturers of Brake Pads, Hydro Mulch and Oil Spill kits and partner with market leading manufacturers who share the commitment to customer satisfaction, product quality and the environment.

Switch Automation

Switch Automation is a smart building platform to drive efficiency, sustainability and comfort. The Switch Platform integrates building data, systems and equipment to give actionable insights into site and portfolio performance. The Switch Platform helps equip teams with a digital facilities management strategy that helps them make effective, timely decisions. Reduce operating and energy costs while delivering an exceptional tenant experience.

Network

Australian Wind and Solar

Australian Wind and Solar (AWS) are a subsidiary of ADANT Services Group Pty Ltd. AWS has considerable experience within the Renewable Energy field, Construction industry and Domestic Electrical work. They are committed to Residential, Commercial, Rural, Off-Grid and Grid-Connected solar and wind solutions. All its PV and Wind systems are designed and installed under the requirements of the Clean Energy Council and are guided by the requirements of the Safety Standards in the Electrical Industry.

Easy Being Green

Easy Being Green is the original, and arguably, Australia’s largest energy efficiency operator, organising mass consumer action on energy efficiency. Established in 2004, Easy Being Green has provided energy efficient solutions to over 800,000 Australian households and businesses installing LED lights, solar panels and solar batteries all over Sydney and Melbourne.

Through Easy Being Green’s various energy efficiency projects, they have managed to stop more than 5 million tonnes of carbon pollution from going into the atmosphere, equivalent to taking around 1.2 million cars off the road!

Easy Being Green doesn’t believe in just talking about the world’s environmental problems, they get out there and do something about it. By working in partnership with other Australians, Easy Being Green is bringing about real and measurable change.

Exergenics

Exergenics makes next generation central plant optimisation software that integrates easily into existing Building Management Systems.

Advanced analytical algorithms, coupled with a smart IoT controller, deliver energy and peak demand savings of up to 20% without sacrificing occupant comfort. Exergenics’ optimisation engine combines the next generation of Big Data and AI software to ensure that every plant is operating at peak performance. Every Box comes with a performance guarantee and simplified M&V reporting.

Exergenics’ powerful optimisation engine has won 2020 Innovation Awards from both the Green Building Council of Australia and Engineers Australia.

MG Consulting

MG Consulting has a highly qualified and experienced team of measurement and verification professionals (CMVP) who are certified to identify potential energy savings within an organisation. The team conducts: Energy Audits, Energy Management Systems, Measurement and Verification, and General Energy Studies.

Sound advice is only one part of an integrated approach to energy management. Energy efficient upgrades, energy monitoring and commercial solar systems all contribute importantly in helping to improve energy performance, including energy efficiency, use and consumption.

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Wonderful webinar Wednesday

Though we’ve nearly made it to the end of the year, there are a couple of additional virtual events happening in the lead-up to the summer holidays. Indeed, we’ve got a jam-packed full Wednesday next week.

Greener Government Buildings: green stimulus for an efficient recovery

3pm – 4pm AEDT, Wednesday 16 December

The Victorian Government’s Greener Government Buildings (GGB) program supports energy efficiency initiatives in public buildings to lower energy costs, reduce emissions and create jobs through energy performance initiatives including lighting and HVAC upgrades, solar PV installation and building automation and controls. In recognition of the program's role in energy savings and job creation, the Victorian Government recently announced $50 million towards the GGB program over the next four years beginning in FY2021.

Established in 2009, 30 projects have been completed to date, resulting in $338 million in energy savings and 686,000 tonnes of greenhouse gas abatement each year. Buildings that have been upgraded using GGB funding include:

• Melbourne Cricket Ground (MCG);
• Federation Square; and
• Museums Victoria buildings.

While great efficiency gains have been achieved through the program in the past decade, there is still much work to do to improve the efficiency of government buildings in Victoria. Join the Energy Efficiency Council and the Victorian Department of Treasury and Finance to discuss the significant opportunities presented by the program. 

Chair:

• Luke Menzel, Chief Executive Officer, Energy Efficiency Council

Speakers:

• The Hon. Danny Pearson MP, Victorian Assistant Treasurer
• Sam Burke, Director, Land and Property, Victorian Department of Treasury and Finance

Date and time:

3.15pm – 4pm AEDT, Wednesday 16 December

Further, faster, together: Australian-German collaboration on energy efficiency in buildings

6pm – 8pm AEDT, Wednesday 16 December

Delivered jointly by the Energy Efficiency Council, the German-Australian Chamber of Industry and Commerce and Adelphi, this exclusive webinar will explore the significant opportunities for Australia and Germany to work together to harness the power of energy efficiency in buildings to kick-start economic activity, strengthen trade links, improve health and wellbeing, and cut carbon.

While Australia has had great success with its world leading NABERS and Commercial Building Disclosure (CBD) programs, Germany has been leading the way in energy efficiency in buildings with energy performance labelling and financing to support upgrades.

Panellists – including the Hon. Lily D’Ambrosio MP, Victorian Minister for Energy, Environment and Climate Change and Carsten Müller, Member of the German Bundestag and Chair of the German Industry Initiative for Energy Efficiency (DENEFF) – will look at Australian and German experiences – including recent economic stimulus measures in both nations – and discuss areas where Germany and Australia can collaborate to get further, faster on the energy efficiency agenda.

Co-chairs:

• Luke Menzel, Chief Executive Officer, Energy Efficiency Council
• Christoph von Spesshardt, Executive Director, German-Australian Chamber of Industry and Commerce

Speakers:

• The Hon. Lily D’Ambrosio MP, Victorian Minister for Energy, Environment and Climate Change
• Carsten Müller, Member of the German Bundestag and Chair of the German Industry Initiative for Energy Efficiency (DENEFF)
• Grace Tam, Director, Debt Markets Clean Energy Finance Corporation
• Carlos Flores, Director, National Australian Built Environment Rating System (NABERS)

Date and time:

6pm – 8pm AEDT / 8am – 10am CET, Wednesday 16 December

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Energy briefing: the Energy Efficiency Council’s business engagement campaign

Holly Taylor, Senior Manager, Projects and Partnerships, Energy Efficiency Council

The 2020 energy landscape is vastly different to that which came before

When we launched the first annual edition of Navigating a dynamic energy landscape: a briefing for Australian businesses in 2018, it was in response to the massive price spikes in the unit cost of both electricity and gas that dominated the headlines in 2017. We sought to explain what was driving the transformation underway in Australia’s energy system, the domestic and global factors influencing energy prices, and the opportunities for business to manage this uncertainty with a proactive strategy that reduced their exposure to volatile energy markets.

While the energy landscape of 2020 is vastly different, it is no less dynamic. The onset of the COVID-19 pandemic has seen the wholesale costs of electricity and gas come down, although long-lived contracts mean many businesses are not benefiting from these drops. And while these cost reductions are welcome, the underlying fundamentals in both electricity and gas markets suggest prices at these levels are unlikely to be sustained as the local and global economy recovers.

As businesses deal with the first recession in thirty years and the biggest economic shock since the Great Depression, their priorities around energy investments are shifting. Cost management is more crucial than ever. But for some, planned capital investments have been scaled back or stopped, with focus shifting to tuning and system optimisation.

However, businesses that are leading on energy strategy are running the ruler over the Federal Government’s new, time-limited immediate expensing provisions. They have recognised that these provisions represent an unprecedented opportunity to make strategic investments in assets that drive major energy productivity improvements.

Read more in the third edition of Navigating a dynamic energy landscape: a briefing for Australian businesses.

Given this, the time is ripe for Australian businesses to realise the benefits of smart energy management. And as we come to a close on 2020, following the launch of three briefings to support Australian businesses with managing the risks, and capturing the opportunities, of Australia’s energy transition, we’re looking forward to a busy 2021.

Supporting businesses on the ground

Next year we’ll be working closely with key partner organisations like Ai Group, Business Australia, CitySwitch and more to promote the energy management opportunities available to manufacturers and offices. And we’ll also be launching a sector spotlight for agribusinesses, and working with the Farmers Federations to support their members with improving the energy performance and realising the financial and environmental benefits of doing so.

We’ll continue to invite leading businesses to share their energy management insights – and  if you missed the launch of any of our briefings, we invite you to watch the recordings on YouTube now. We look forward to getting back to some IRL business engagement opportunities – and continuing to host webinars to further the reach beyond the big cities.

Keep an eye on energybriefing.org.au/events and your inboxes for upcoming events.

Energy upskilling for business advisors

In 2020 we also piloted energy literacy programs for business advisors, upskilling them with the knowledge they need to give their clients confidence in making energy and carbon management investments. And as we look to 2021, we’ll be looking to expand that program to grow demand for energy management products and services that deliver real savings for businesses across the country.

New resources to support businesses

There is a wealth of resources available at energybriefing.org.au to support businesses – and indeed business advisors and energy services providers – with successfully navigating Australia’s energy transition, and indeed, improving productivity in the wake of the recession. In particular, in recent months we launched:

• The third edition of Navigating a dynamic energy landscape: a briefing for Australian businesses
• Navigating a dynamic energy landscape: a briefing for manufacturers
• Navigating a dynamic energy landscape: a briefing for office-based businesses

Also check out the launch recordings on YouTube, noting of course that the sector spotlight for office-based businesses was only launched yesterday, so the video will be up before the end of the week!

Further resources will be added throughout 2021.

What’s next?

In 2020 Australian businesses have had it harder than ever, but in 2021, with some assistance from trusted advisors, and support from Government – like the Federal Government’s instant asset write-offs – businesses will be able to have an efficient recovery, and a prosperous future.

If you’d like to learn more about how the Energy Efficiency Council is supporting businesses with improving their energy management, please contact Holly Taylor, Senior Manager, Projects and Partnerships at holly.taylor@eec.org.au.

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