Untapped opportunity for energy productivity

Lifting energy productivity is the ‘missing link’ in enabling us to meet our carbon reduction targets and reconciling emission cuts with strong economic growth, said Chris Dunstan*, Research Director of Institute for Sustainable Futures (ISF). The ISF of the University of Technology Sydney, together with the Australian Alliance to Save Energy (A2SE), is hosting the upcoming Australian Summer Study on Energy Productivity (Summer Study). In this article, Chris shares his opinions about the latest trends and initiatives in terms of energy productivity for industry.

Although Australia has a strong track record on the international stage with recognised leadership in some aspects of energy efficiency (such as phasing out incandescent lighting, NABERS ratings and programs such as the Energy Efficiency Opportunities (EEO) program), we’ve got a long way to go to put Australia in the forefront of energy productivity from an international comparison.

The EEO program has been excellent in driving cultural change and energy productivity across a range of industries and business, particularly larger businesses. But now that program has ended, there is scope to reinvigorate this space and tap into further potential for improving energy management and lifting energy productivity in Australia. By improving energy productivity on a residential and industrial level, we can not only increase the value of every unit of energy used but also boost the economy and create jobs along the way.

ISF has been working with the Australian Alliance to Save Energy (A2SE) on its 2xEP-2030 initiative, which plans to double Australia’s energy productivity by 2030. Working together with government and a range of industry partners, the initiative plans to release ‘roadmaps’ with a clear direction for rapid improvement in Australia’s energy productivity early this year.

When it comes to future trends within industry, there are some major disruptive technologies coming down the track that could lead to some significant improvements in energy productivity; for example, 3D printing, which can reduce waste and lead to material efficiency improvements as well.

There is also potential for other technologies that are not new but have been slow to pick up in Australia, such as cogeneration and variable speed drives. Recent increases in electricity and gas prices have scared a lot of people and volatility in energy prices is likely to continue. These types of energy-efficient technology can not only provide more productive use of energy but also insulate businesses from gyration in energy prices.

Energy productivity also has a role to play with the unstoppable shift to renewables in Australia. In this context, technology can be used to not only reduce the overall amount of energy used, but also improve the way in which it is used by introducing smarter controls that manage energy use and time of use. There is also the whole storage revolution to consider, which is in part driven by the growth in renewables. In order to facilitate storage we are going to have to have cost-reflective pricing, and with a variable energy supply such as renewables, cost-reflective pricing becomes even more important in order to facilitate and encourage smarter energy management.

The third dimension around energy productivity is using information technology (IT) for more responsive, predictive and self-learning processes around the time and energy use; for example, having algorithms and software that help manage the load and respond to different demand and price conditions. This is where the likes of Google, Apple and Samsung are all wanting to get into this energy management space. This is likely going to be huge at not only the residential level, but also in business energy use.

In order to encourage energy productivity in industry, it’s a process of cultivating good practice around energy, and this can spin off into other areas. If you’re more conscious about energy consumption, then that is often associated with more efficient material use. Industries that have a focus on using energy efficiently can not only contribute directly to the bottom line, but also indirectly through better material and labour efficiency, and that can also lead to productivity improvement.

The Summer Study, hosted by the Institute for Sustainable Futures (ISF) of the University of Technology Sydney and the Australian Alliance to Save Energy (A2SE), will take place at the Novotel Hotel Manly Beach, from 24–26 February. The four themes which will be covered at the study include: markets and regulation, sectoral energy productivity, communities and communication, and technology and innovation. Sessions included under sectoral energy productivity will include the mining and resources sector, building and construction, transport (passenger and freight), food and agriculture and urban design. For further information, visit www.summerstudy.org.au.

*Chris Dunstan is a Research Director at the Institute for Sustainable Futures (ISF), University of Technology Sydney. Since joining ISF in 2006, Chris’ research has focused on climate change policy and the electricity sector. He has led the development of the Australian Decentralised Energy Roadmap, the NEM Report Card and Network Opportunity Maps.

Chris has previously played a key role in developing the NSW Greenhouse Gas Abatement Scheme — the world’s first Carbon Emissions Trading Scheme and Energy Efficiency Trading Scheme. He was also instrumental in developing Australia’s first Demand Management Code of Practice for Electricity Networks and the NSW Government’s $200 million Climate Change Fund.

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