Demanding Better
A reform agenda for harnessing the power and flexibility of demand side energy resources
As Australia charts the best route to transition our energy system to net zero emissions, current policy frameworks are leaving critical demand-side actions and opportunities on the sidelines.
A big part of the problem is our system of energy governance. Australia’s energy system is governed by a range of markets, policies and regulations, and institutions. Conceived in the 20th century, these arrangements are no longer fit to coordinate the greatest industrial revolution yet – the transition to an energy system that is digitalising, decentralising and decarbonising on the pathway to net zero emissions.
Current Australian energy governance does not adequately consider energy use and focuses almost solely on coordinating energy supply. Demand-side actions – such as energy efficiency and demand flexibility – are essential to achieving emissions reduction targets and can save billions of dollars in energy bills and investment through right-sizing investment in new infrastructure. Current governance arrangements fail to seize these opportunities, needlessly locking us into higher costs and emissions.
Following extensive stakeholder consultation, the Australian Council of Social Service, Ai Group, Energy Efficiency Council and the Property Council of Australia have teamed up to help governments unlock the demand side’s power to reduce bills and emissions, and accelerate the transition.
The paper recommends Federal, State and Territory policymakers work together to:
- Immediately establish a national energy performance agency
- Set national energy performance targets, and measure progress
- Increase representation of consumers and demand side experts in decision-making
- Develop new policies and delivery models that meet energy users where they are
- Identify, understand and mitigate risks to equity
- Put the demand side at the heart of broader energy governance reform.