Business Spectator Energy Efficiency

Regulation

Energy efficiency: Reduced demand - what's the problem?

The Productivity Commission’s recent report stated that reducing energy consumption through energy efficiency measures does not contribute to peak demand control measures. 

Business Spectator says:

  • This view is erroneous and tunnel visioned
  • It is reflective of our failed energy model structure: energy companies rely on increased use to increase profits
  • A submission to the 2010 Prime Minister’s Energy Efficiency Task Group by IPRA, then owner of coal-fired power generation, stated: "IPRA rejects any proposal to introduce climate change policy, under the guise of energy efficiency measures, which has the potential to destroy the value of existing investments in the generator sector."
  • We have poor data on what equipment operates when, so it is difficult to design optimum programs that both cut peak demand and reduce consumer bills
  • Energy policy makers need to provide a framework that encourages or forces the electricity industry to support both peak reduction and electricity savings

Robin Archibald, COO Ecosave, comments:

“There may be poor existing peak-energy-usage data for equipment but an Energy Services Company's (ESCOs) role is to gather this type of data for individual facilities. As each facility is unique, a one-shoe-fits-all energy model would struggle to meet the needs of industry. Efficiency projects will assist in reducing peak demand because they reduce demand generally. Energy providers that embrace energy management and renewable energy generation will ultimately succeed in a changing industry.”

www.businessspectator.com.au/article/2013/11/12/policy-politics/energy-efficiency-getting-past-business-killjoys