Aug 08, 2012 - 11:15am
Australia must improve its energy productivity to maintain competitiveness in a world of rising fuel and energy costs and increasing carbon constraints. A national Energy Savings Initiative (ESI) is a critical component of this objective.
An ESI would:
- Lower consumers’ energy costs: Households could save $90-300 per year by 2020. Medium-sized businesses could save $10,000-23,700 per year.
- Lessen Australia’s exposure to increasing prices for energy: Australian electricity prices have been increasing significantly – regardless of carbon pricing – due mainly to investments in network infrastructure. In addition, fuel prices have risen and are expected to continue to rise. Global oil prices remain high, while Asian demand for Australian coal and LNG is putting pressure on domestic coal and gas prices.
- Increase domestic pollution reduction and reduce the cost of achieving Australia’s emissions reduction targets: Cost effective energy efficiency measures could achieve more than a third of Australia’s minimum 5 per cent target and a quarter of a 25 per cent target in 2020, and save more than $7.5 billion.
- Cut costs by replacing inconsistent state schemes: Energy retailers estimated that harmonising the existing schemes would cut their implementation costs by 12 per cent. Streamlining the bureaucratic task may also reduce the overall burden on government.Australia lags other countries on energy efficiency
For full details, download the Research Brief below.