An Overview of Australias EE Policy Measures and Regulations

Mark Lister, Executive Director 20 June 2011

Australias historical EE performance

Australian energy policy is biased towards supply

Australias EE policy environment (!)

CSIRO (2009), Intelligent Grid: A Value proposition for 4 distributed energy

Current Australian frameworks for energy efficiency decision making

National Strategy for Energy Efficiency (2008)
Comprehensive measures across buildings, transport, electricity markets and government operations

Prime Ministers Task Group on Energy Efficiency (2010)

New recommendations for targets, national incentive schemes, improved data and governance

Complexity for implementation has emerged through linkage of EE and carbon pricing
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A new EE Driver rising energy prices

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Source: Rod Sims, Energy market outlook (Presentation to the Multi-Party Climate Change Committee, 10 November 2010)

Mapping the barriers to EE and the policy responses the policy palette
Information Pricing Targets Facilitation Coordination Targets Regulation Pricing
Dunstan C, Langham E, and Ison N (2009), 20 Policy Tools for Developing Distributed Energy, Institute for Sustainable Futures

Incentives Facilitation

Energy Efficiency Opportunities

Facilitation

A major reporting program for large energy users EE upgrades not mandatory under the program

Savings: $736m in first year, equal to 1.1% of Australias emissions

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Minimum Energy Performance Standards

Regulation

Successful across a range of technologies points to the usefulness of targeted regulation in EE World leading on the banning of incandescent light bulbs Estimated net benefits of AUD$22.44 billion (NPV in 2008 at discount rate 7.5%) for the period 2009-2024 Work on vehicle standards also ongoing
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Mandatory Disclosure of Performance

Information

Performance of commercial and residential buildings Appliance labelling Building a culture of efficiency

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EE Financial Support Schemes

Incentives

Certificate/market-based schemes Grant and bidding round schemes Rebates

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Our priority: A focus on information and research

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Snapshot of Demand Management activity by electricity network companies

= 0.1% of Capex

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Snapshot of DM activity by networks:

Energy Saved
By activity By state

= 0.01% of Energy Use

= 0.01% of Energy Use

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Snapshot of DM activity by networks:

Peak Demand reduction
By activity By state

= 0.1% of Peak Demand

= 0.1% of Peak Demand

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Our research shows that governance and jurisdictional clarity is a top priority

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Conclusions
Need institutional coordination
Pricing Targets Coordination Targets Regulation Facilitation Incentives

-To reduce confusion, build consensus, embolden action and create alignment of incentives especially with utilities

Need aspirational targets

-set collaboratively

Need incentives to overcome short-termism and transaction costs Need to invest in system capability, not system growth
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Thank you

Mark Lister mark.lister@a2se.org.au +61 402 320 906 www.a2se.org.au

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