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Australian Government Pushes Energy Efficiency Strategy Amid Net Zero Push

The strategy aims to help improve energy performance and reduce costs.

The Department of Climate Change has launched the first National Energy Performance Strategy, providing a long-term framework to help improve energy performance and reduce energy costs.

It will also include electrification or fuel switching, which means swapping to electricity-powered technologies or other cleaner sources of energy.

“Households are partners in our renewable energy transformation. We want solar on rooftops, batteries in garages to work hand in hand with the rest of the energy market,” Assistant Minister for Climate Change and Energy Jenny McAllister said.

The strategy identified its five key focus areas namely economy; households; communities, businesses and industry; energy system; and technology and innovation.

The strategy will introduce reforms aimed at providing greater access to tools that deliver transparency about the performance of homes, workplaces, and appliances.

It highlighted that changes in minimum standards and transparency on energy efficiency already saved Australians an estimated $12 billion (US$7.9 billion) to $18 billion in energy costs from 2011 to 2022.

It also emphasised that flexible demand, including controllable EV charging and batteries, would generate up to $18 billion in cost savings for consumers through lower capital and wholesale prices in the National Electricity Market by 2040.

Moreover, the department expects that 20 percent of global missions reduction by 2030 will be achieved by electrification.

“Australia has a clear-cut plan to drive action on the demand-side of the energy market to support the economy-wide energy transformation and help put downward pressure on energy bills,” Climate Change and Energy Minister Chris Bowen said.

The plan will involve coordinating with state and territory governments, as well as industry, the community, and First Nations peoples.

The department’s public consultation received 135 submissions from businesses, consumer groups and experts, industry, and consultation with territory and state governments.

The Australian government is investing $15.2 million until 2026 to develop, evolve, and execute the strategy.

Renewable Energy as Key to Economic Transformation

Earlier, Net Zero Economy Agency Chair Greg Combet said that the government is set to lay out the next phase of its energy transformation approach in the May budget, which will look to take advantage of the country’s abundant minerals and renewable energy and encourage large-scale investment in green industrial production.

Mr. Combet said that currently, there are around 3.7 million Australian households generating their own solar power, accounting for an average of 11 percent of national electricity last year.

“Incentives on the demand side—to drive more rooftop solar and home and community battery storage—have a role to play. But to transform the economy, large scale generation is fundamentally important. The state and territory governments are pushing hard on this front,” Mr. Combet said.

In a joint statement, organisations Re-Alliance and the Community Power Agency said that local energy hubs will be crucial for the clean energy advancements.

“We need to help communities feel a part of this change. Local energy hubs have the power to take people from being confused bystanders to active participants getting direct benefits,” Community Power Agency Director Jarra Hicks said.

“Imagine if you could speak directly with someone you know and trust, who could help you to understand new energy infrastructure and what it means for your community—from electrifying your home appliances, to setting up a community energy project, to working with large projects to make sure there are good local jobs and benefits.”

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