Australian Government Department of Industry Tourism and Resources Energy Efficiency by richman6


									Australian Government
Department of Industry
Tourism and Resources

                   Energy Efficiency Opportunities (Aust)
                   Energy Savings Action Plans (NSW)
               APPrOAchiNg PArticiPAtiON iN AN iNtEgrAtEd WAy

               thE tWO PrOgrAmS
               Energy Efficiency Opportunities is a national mandatory energy efficiency program for large
               energy using corporations that was announced in the Australian Government's 2004 energy
               white paper. The program's requirements are set out in the Energy Efficiency Opportunities
               legislation which came into effect on 1 July 2006, and industry guidelines and other support
               material are available to help corporations understand their obligations
               (see The program is administered by the
               Department of Industry, Tourism and Resources (DITR) and is part of the National
               Framework for Energy Efficiency.
               The NSW water and energy savings initiatives were introduced by the NSW Government in
               May 2005. They are administered by the Department of Energy, Utilities and Sustainability
               (DEUS) and include a requirement for certain businesses, government agencies and local
               councils to prepare Energy Savings Action Plans. Plans must be prepared in accordance
               with the Guidelines for Energy Saving Action Plans, available from DEUS
               A number of businesses in NSW are required to meet the obligations of both Energy
               Efficiency Opportunities and the Energy Savings Action Plans. DITR and DEUS are working
               closely together to ensure, where possible, that work undertaken in one program can be
               utilised in the other where it meets requirements.

               WhO dO thEy iNvOlvE?
               Participation in Energy Efficiency Opportunities is mandatory for the estimated 250
               corporations in Australia that use more than 0.5 petajoules (PJ) of energy per year. This is
               approximately equivalent to the energy used by 10,000 households. The program applies
               to corporations in all sectors of the economy.
               As a guide to businesses, those using more than 0.5 petajoules (PJ) a year may typically
               have an annual energy bill of more than $1.5-$2.5 million for gas, $5-10 million for electricity,
               $11 million for diesel fuel or $13 million for unleaded petrol (depending on prices). Put
               another way, 0.5 PJ approximately equals 139,000 MWh, 13 ML diesel, 9000 tonnes of
               LNG or 10,000 tonnes of LPG.
               Energy Savings Action Plans must be completed by NSW businesses and government
               agencies with sites using more than 10 GWh of electricity a year, and local councils with
               populations of more than 50,000 people. The organisations required to prepare Energy
               Savings Action Plans were gazetted in an Energy Savings Order in October 2005.

                                                                                        INFORMATION SHEET NO. 1

                                           INFORMATION SHEET NO. 1

WhAt dO thEy iNvOlvE?
Corporations participating in Energy Efficiency Opportunities are required to assess 80% of
their total energy use, including all sites that use more than 0.5 PJ per year, within the five
year assessment cycle. They must report publicly on the results of the assessment and the
business response. Decisions on energy efficiency opportunities remain at the discretion of
the business.
The program’s Assessment Framework takes a whole of business approach to assessing
energy use and energy savings opportunities. Participants are expected to meet minimum
requirements in six key areas: leadership, management and policy; the accuracy and quality
of data and analysis; the skills and perspectives of a wide range of people; decision making;
and communicating outcomes to senior managers, the board, and people involved in the
Corporations must report publicly on the results of their energy efficiency assessments and
the opportunities that exist for projects with a financial payback of up to four years. The
focus is on the energy savings opportunities identified in the assessment and the business
response to those opportunities.
Corporations are also required to report some additional information to DITR for evaluation
Energy Savings Action Plans must be prepared for sites identified by DEUS. They involve
determining current energy use, undertaking management and detailed technical reviews,
assessing energy savings measures and identifying actions to achieve savings. Users
must submit annual progress reports to DEUS and undertake a review after four years.
Businesses with multiple sites can submit either a single or multiple savings action plans.
They can include sites not listed in the Savings Order within their action plans.

ENErgy dEfiNitiON
Both programs include all energy imported to the site (e.g. electricity and steam), energy
consumed by stationary equipment, and energy used as a direct input to electrolytic or
metallurgical processes. Energy Efficiency Opportunities also includes energy used by
nonstationary equipment (i.e. mobile or transport equipment). Transport energy is not
required for Energy Savings Action Plans, but users are encouraged to include it, if they wish
to do so.
Potential energy sources used as a direct input to production processes are not required for
either program.

currENt ENErgy uSE dAtA
Both programs involve measuring changes in energy use over time. Energy Efficiency
Opportunities requires that a business indicates the amount of energy used in any 12 month
period, from July 2004 to June 2007, which reflects the regular and likely energy use of the
corporation. This timeframe complements the DEUS timeframe.
Energy Savings Action Plans require businesses to use a recent year of energy data for
individual sites, reflecting ‘regular and repeatable’ use. This is likely to be a 12 month period
between January 2004 and January 2006.


                                          INFORMATION SHEET NO. 1

Energy Efficiency Opportunities requires a corporation to register for the program within nine
months following the financial year in which the total energy use of its group exceeds 0.5 PJ
(the ‘trigger year’). The first possible trigger year is 2005-06. Assessment and reporting
schedules are submitted within 18 months following the end of the trigger year, and first
assessments completed and reported on within two and a half years. Participants have five
years to complete all assessments.
Energy Savings Action Plans must be submitted by nominated dates between June and
December 2006, as specified in the Energy Savings Order.
Energy Efficiency Opportunities recognises assessments conducted for DEUS prior to the
trigger year, provided that they meet the requirements of the Energy Efficiency Opportunities
Assessment Framework.

Both programs share a similar intent—to ensure that a rigorous and comprehensive
technical assessment of energy efficiency opportunities is conducted. They also aim to
ensure that management and organisational barriers to energy efficiency are addressed by
engaging a range of people who directly and indirectly influence energy use, and managers
who make decisions on implementing energy efficiency opportunities.
Energy Efficiency Opportunities operates at the corporation level and requires senior
managers to set and communicate the objectives for assessments and energy use,
and report the results of assessments to the corporation’s board. The results of DEUS
assessments, which are conducted at the site level, may be used by a corporation to assist
with meeting the requirements of Energy Efficiency Opportunities.

Energy Efficiency Opportunities requires participants to publicly report on the outcomes of
assessments and the business response. The aims of reporting are to encourage careful
consideration by business of energy use and the opportunities identified, while enabling
the community to identify industry’s efforts to reduce energy use. Participants report to the
public in their own public reporting mechanism within 15 months of the completion of their
first assessment, or within two and a half years of the commencement of the assessment
cycle (e.g. by 31 December 2008). Participants also publish annual updates to their initial
Energy Efficiency Opportunities requires that a report be provided to DITR at or before the
first report to the public, and again at the end of the assessment cycle.
The Energy Savings Action Plans are to be submitted to DEUS, with annual reporting on
plans required from the date of approval. Information contained within the Action Plan
nominated as confidential will be treated as such.
Energy Efficiency Opportunities is working with DEUS, Greenhouse Challenge Plus and
industry to streamline reporting on all three programs. More information is expected to be
available by the end of 2006.


                                           INFORMATION SHEET NO. 1

OPPOrtuNitiES fOr iNtEgrAtiON
As far as possible, organisations required to meet the obligations of both programs are able
to use work undertaken for one to wholly or partially meet requirements of the other. This
may include:
• 	 Current energy use data—the energy data collected for stationary equipment may be
    used for both programs, providing it is for a year reflecting ‘regular and repeatable’ use.
    Relevant businesses are encouraged to include transport energy within their Energy
    Savings Action Plans to enable them to meet the requirements of Energy Efficiency
• 	 Management of energy—Energy Efficiency Opportunities' assessment and reporting
    requirements drive the involvement of people, management and systems needed to track
    and manage energy use. Energy Savings Action Plans include an Energy Management
    Review with similar aims; results of this review can feed into Energy Efficiency
    Opportunities assessments.
• 	 A rigorous and comprehensive assessment—Corporations participating in Energy
    Efficiency Opportunities may develop an approach that can meet the assessment
    standard required by both programs. For example, a site conducting a DEUS
    assessment integrates Energy Efficiency Opportunities requirements and feeds the
    results into the corporation's overall assessment.
• 	 Identifying cost-effective opportunities—Energy Efficiency Opportunities requires
    that participants make decisions on opportunities with paybacks of up to four years or
    equivalent. Participants are free to use their own criteria to make these decisions. Energy
    Savings Action Plans can use the organisation’s internal rate of return (IRR) over a ten
    year life. Net present value (NPV) can also be used to rank projects.
For full details and answers to specific questions for your organisation, please contact DITR
or DEUS on the numbers below.

 mOrE iNfOrmAtiON

       Energy Efficiency Opportunities
       Telephone        1300 799 186

       Energy Savings Action Plans
       Telephone        (02) 8281 7417


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