The successful Energy Efficiency Opportunities (EEO) program will be broadened to incorporate new developments and major expansions, saving business millions of dollars in energy costs across the lifetime of new projects, the Government announced today.
Resources and Energy Minister Gary Gray welcomed the extension of the program into the design of new projects across a range of sectors including mining, manufacturing, oil and gas, and generation and some infrastructure projects following a positive Regulation Impact Statement (RIS) outcome.
“To date, the EEO program has helped corporations to increase profitability, productivity and competitiveness by supporting them to better understand their energy use and to identify and implement savings measures,” Mr Gray said.
“Trial results show clear net benefits in conducting energy efficiency assessments at the design stage, with potential energy savings of 11 to 50 per cent.
“For a new iron ore mine that uses around 2.5 petajoules of energy a year, integrating energy efficiency throughout the design can deliver potential savings of up to $7 million a year, and up to $50 million over 10 years based on net present value.”
The EEO program was launched in 2006 and extended in 2011 as part of the Clean Energy Future package. A recent independent review of the EEO Program found it to be highly effective in enabling millions of dollars in energy savings across participating businesses.
“Companies already participating in the EEO program have reported energy savings of 88.8 petajoules – that represents around 1.5 per cent of Australia’s energy use or over $800 million a year. Now this opportunity is available for new developments,” Mr Gray said.
The Government has also been examining the extension of the EEO program to electricity and gas transmission and distribution businesses. The RIS found that costs would exceed the benefits, and as a result, the Government has decided not to proceed with the extension of the program to this sector. Improving outcomes for energy consumers is being addressed separately through the wide-reaching reforms of the Standing Council on Energy and Resources.
The EEO program will apply to new development and expansion projects from July this year. The framework will be finalised in the coming weeks, with a particular focus on reducing compliance burden and recognising existing design processes, in line with recommendations from the recent review of the program.
Reference: Published on June 19, 2013 - http://energyefficiencyopportunities.gov.au