Read The Times Australia

Daily Bulletin

Australia has failed miserably on energy efficiency – and government figures hide the truth

  • Written by: Hugh Saddler, Honorary Associate Professor, Centre for Climate Economics and Policy, Australian National University

Amid the urgent need to slow climate change by cutting greenhouse gas emissions, energy efficiency makes sense. But as Australia’s chief scientist Alan Finkel last week warned, we’re not “anywhere close to having that nailed”.

Energy efficiency means using less energy to achieve the same outcomes. It’s the cheapest way to cut greenhouse gas emissions and achieve our climate goals. Improving energy efficiency is also vital to achieving so-called “energy productivity” – getting more economic output, using the same or less energy.

But Australia’s national energy productivity plan, agreed by the nation’s energy ministers in 2015, has gone nowhere.

It set a goal of a 40% improvement in energy productivity by 2030. But my analysis, based on the most recent official data, shows that in the three years to 2017-18, energy productivity increased by a mere 1.1%.

Clearly, there is much work to do. So let’s take a look at the problem and the potential solutions.

Australia has failed miserably on energy efficiency – and government figures hide the truth Energy efficiency reduces power bills for consumers. Julian Smith/AAP

Energy efficiency: a low-hanging fruit

Better energy efficiency lowers electricity bills, makes businesses more competitive and helps manage energy demand. Of course, it also means less greenhouse gas emissions, because fewer fossil fuels are burnt for energy.

Business, unions and green groups recognise the benefits. Last month they joined forces to call for a sustainable COVID-19 economic recovery, with energy efficiency at the core, saying:

In Australia, a major drive to improve the energy efficiency of buildings and industry could deliver over 120,000 job-years of employment […] Useful upgrades could be made across Australia’s private and public housing; commercial, community and government buildings; and industrial facilities.

The group said improvements could include:

  • more efficient and controllable appliances and equipment, especially for heating and cooling
  • improved shading and thermal envelopes (improving the way a building’s walls, ceiling and floors prevent heat transfer)
  • smart meters to measure energy use
  • distributed energy generation and storage, such as wind and solar backed by batteries
  • fuel switching (replacing inefficient fuels with cleaner and economical alternatives)
  • equipment, training and advice for better energy management.

Read more: Homes with higher energy ratings sell for more. Here's how Australian owners could cash in

The International Energy Agency (IEA) has suggested other measures for industry and manufacturing, such as:

  • installing more efficient electric motors
  • switching from gas to electric heat pumps
  • more waste and material recycling.

And in transport, the IEA suggests incentives to get older, less efficient cars off the roads and encourage the uptake of electric vehicles.

Australia has failed miserably on energy efficiency – and government figures hide the truth Residential buildings offer big opportunities for energy efficiency improvements. Brendan Esposito/AAP

Governments’ sleight of hand

In 2018 the IEA observed:

the power sector will be at the heart of Australia’s energy system transformation […] International best practice suggests that both energy efficiency and renewable energy are key drivers of the energy transition.

Since then, renewable energy’s share of the electricity mix has increased. But energy productivity has stalled.

To understand how, we must define a few key terms.

Primary energy refers to energy extracted from the environment, such as coal, crude oil, and electrical energy collected by a wind turbine or solar panel.

Final energy is the energy supplied to a consumer, such as electricity delivered to homes or fuel pumped at a petrol station.

Read more: Coronavirus is a 'sliding doors' moment. What we do now could change Earth's trajectory

A lot of energy is lost in the process of turning extracted primary fuels into ready-to-use fuels for consumers. For example at coal-fired power stations, on average, one-third of the energy supplied by burning coal is converted to electricity. The remainder is lost as waste heat.

Until 2015, Australia and most other countries used final energy as a measure of how rapidly energy efficiency was improving. But the national productivity plan instead set goals around primary energy productivity – aiming to increase it by 40% between 2015 and 2030.

This has made it possible for governments to hide how badly Australia is travelling on improving energy efficiency. I analysed national accounts figures and energy statistics, to produce the below table. It reveals the governments’ sleight of hand.

Over the three years from 2014-15 to 2017-18, final energy productivity increased by only 1.1%, whereas primary energy productivity increased by 3.5%.

The reduced primary energy consumption is mostly due to a large increase in wind and solar generation. The efficiency of energy used by final consumers has scarcely changed.

A sustainable future

The lack of progress on energy productivity is not surprising, given governments have shown very little interest in the issue.

As Finkel noted in his address, Australia’s energy productivity plan is absent from the list of national climate and energy policies. The plan’s 2019 annual report has not been released. And those released since 2015 have not monitored progress in energy productivity.

What’s more, the plan makes no mention of previous similar agreements, in 2004 and 2009, to accelerate energy efficiency with regulation and financial incentives. Since 2013, almost all Commonwealth programs supporting those agreements have been de-funded or abolished, and many state programs have also been cut back.

Read more: Switch off your engine, it's not hard: how to cut your fuel bill, clear the air and reduce emissions

The IEA’s sustainable recovery plan, released last week, outlined what a sustainable global economic recovery might look like. In particular, it said better energy efficiency and switching to more efficient electric technologies will deliver triple benefits: increased employment, a more productive economy and lower greenhouse gas emissions.

In this carbon-constrained world, relatively easy and cheap opportunities such as energy efficiency must be seized. And as Australia spends to get its post-pandemic economy back on track, now is the time to act.

Authors: Hugh Saddler, Honorary Associate Professor, Centre for Climate Economics and Policy, Australian National University

Read more https://theconversation.com/australia-has-failed-miserably-on-energy-efficiency-and-government-figures-hide-the-truth-123176

Business News

Australian organisations are relying on business continuity plans built for a far more predictable world

Tariff escalations, supply chain fragility, geopolitical events, and the ongoing threat of cyber disruption have reshaped the risk environment facing Australian organisations. The problem is that ma...

Daily Bulletin - avatar Daily Bulletin

How to Rent a Car for Uber in Melbourne: What Every New Driver Needs to Know

Starting out as an Uber driver in Melbourne is not as complicated as it sounds but getting the vehicle right is where most new drivers get stuck. Uber has strict requirements around vehicle age, condi...

Daily Bulletin - avatar Daily Bulletin

When Should You Speak to a Lawyer About a Legal Issue?

Legal issues can begin with a simple question, then become harder to manage once formal steps are involved. Many people wait until a matter feels urgent before seeking guidance, even though earlier ...

Daily Bulletin - avatar Daily Bulletin

The strategic rise of Bali as Australia’s next essential healthcare support hub

As Australian healthcare providers grapple with unprecedented operational bottlenecks, a new nearshore model is quietly transforming patient care delivery. Forward-thinking organisations,  including...

Daily Bulletin - avatar Daily Bulletin

Cost Savings and Benefits of Using Used Pallets in Logistics

In today’s competitive logistics and supply chain industry, businesses are constantly looking for ways to reduce operational costs without compromising efficiency and reliability. One of the most prac...

Daily Bulletin - avatar Daily Bulletin

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

The Hidden Engineering Problem Inside Australia's Older Housing Stock

A significant share of Australian homes were built for a way of living that no longer exists. Houses...

DIY Rodent Control Vs Professional Help: When Is It Time To Call The Experts?

Rodents are one of the most frustrating pest problems for Australian property owners. Rats and mic...

Lighting Shop in Perth: How The Right Lighting Can Transform Your Home And Business

The right lighting can completely change the look, feel, and functionality of any space. Whether it ...

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...