Energy Efficiency Opportunities (EEO) Program

2nd International Conference on the Global impact of Energy Management Systems: ‘Creating the right environment for ISO 50001 to thrive’– Dublin, 4 May 2012

Albert Dessi, Technical Team Leader, Energy Efficiency Opportunities

EEO Program: Australian Energy Use

Energy Use of Reporting EEO Corporations as a Proportion of Australia's Total Energy Use 2009-10

Government40 PJ,

1%

Households (Residential 9% &

Transport 8%)

1006 PJ, 17%

Other Businesses(One million +)

1431 PJ, 25%

Electricity Generation1614 PJ,

28%

EEO Corporations1701 PJ,

29%

EEO: Background

• Announced as part of the 2004 Energy White Paper

• In response to Australia’s relatively low rate of energy efficiency improvement

• To address information barriers to identifying and implementing energy efficiency opportunities

• Commenced in 2006 after extensive industry consultation and trials

• Applies to corporations that use more than 0.5 petajoules of energy per year (equivalent to annual energy use of 10,000 households)

EEO PROGRAM ENERGY USE COMPARED TO TOTAL SECTOR ENERGY USE, 2009-10

78%

93%

92%

15%

25%

0

100

200

300

400

500

600

700

800

900

Mining MetalsManufacturing

OtherManufacturing

Transport Services

PJs

EEO Energy Use

Total Sector Energy Use

• Corporations and electricity generators using more than 0.5 PJ energy per year are required to participate

• Must undertake an energy efficiency assessment using the EEO Assessment Framework to identify cost-effective opportunities to reduce energy use

• Results of the assessments must be signed off by the Board, and reported to government and publicly to the community

• Verification that assessment meets regulation and external evaluation of program every 2.5 years.

• Implementation is not mandated under legislation

AIMS AND FEATURES OF THE PROGRAM

ASSESSMENT FRAMEWORK

Assessment Framework ISO EnMS model

Assessment Framework – Leadership and people

Leadership

• Set clearly defined energy performance objectives

• Strong leadership and visible commitment from senior management support to achieve these objectives

People

• Involve a broad cross section of people in the collection, analysis identification and evaluation of energy efficiency opportunities

• Ensure that people involved in the assessment have clearly defined roles, responsibilities and accountabilities.

Assessment Framework – Information, Data & Analysis

• Collecting good quality energy use information and data is essential

- if you get the data and analysis right the opportunities will emerge

• A whole of systems approach is critical and will result in identifying more significant opportunities by highlighting:

- Identifying losses between technologies and processes.

- How to optimise outputs relative to energy and resource inputs.

• an energy mass balance (EMB) is a good systems approach that allows companies to analyse the energy and material flows through their processes, systems and equipment.

Assessment Framework – Opportunity Identification and Analysis

• Establish a systematic process to assess the feasibility and merits of opportunities identified through data analysis.

• Evaluate the whole business approach to ensure that all the impacts of energy efficiency opportunities are clearly understood.

– Water & waste costs, increased production, lower maintenance costs, reduced capital replacement costs, improved worker conditions.

Assessment Framework – Decision Making

• To inform investment decisions, develop a business case for each opportunity showing the resources and time to deliver savings.

• Business cases allow managers to consider:

- whether to proceed;

- what additional information is required;

- what resources need to be allocated; and

- what accountabilities need to be established to ensure that opportunities are delivered within specified timelines and costs.

Assessment Framework – Communicating and Tracking Outcomes

• Publicly reporting opportunities, the business response and energy savings, keeps a focus on delivering energy efficiency and learning from what works.

• It is important to communicate the energy savings successes to staff.

RESULTS – ENERGY SAVINGS REPORTED, DECEMBER 2008- DECEMBER 2010

0

20

40

60

80

100

120

140

160

2007-08 2008-09 2009-10 2007-08 2008-09 2009-10

PJ

67.7

113.7

141.9

41.6

61.5

75.5

Energy Savings Identified Energy Savings Adopted / to be Adopted

Savings identified for implementation equal: - 5.98 MtCO2-e, or - 1.1% of Australia’s total greenhouse gas emissions

0

10

20

30

40

50

Implemented

36 PJ

Not to be implemented

43 PJ

Under investigation

23 PJ

Implementation commenced

23 PJ

To be implemented

16 PJEnergy savings 2010

Savings identified for implementation by EEO corporations equal 75 PJ

– equivalent to 6.0 MtCO2-e (over 1.1% of Australia’s total Emissions– equivalent to $700m in net annual savings– represents a 5.2% reduction in energy use.

Assessed Energy = 1448PJ

En

erg

y u

se

(P

J)

Greenhouse gas emissions (MtCO2-e)

2.84 1.84 1.3 3.41 1.85

EEO Program Results: Reported Energy Savings

Identified Energy Savings = 142PJ

9.8%

Total Energy Use = 1684PJ (30%)

86%

EEO assessments versus energy audits

• EEO uses energy analysis of plant systems and subsystems to identify opportunities.

• examines energy using processes from first principles

• Also examines operational factors to identify efficiencies.

• Not limited to examination of performance under normal or stable conditions

• Full site coverage

EEO: Additionality?

• Evidence from the mid-cycle review is that EEO has strengthened energy assessment and energy management within corporations

• addressed barriers to identification & implementation of opportunities

• Program has not displaced any private expenditure

• Some opportunities may have been implemented anyway – though the EEO program made a major contribution to the savings

Comparison between EEO and ISO 50001

• EEO has a significant energy management component – the leadership, people and communication key elements are similar

• EEO is more specific on the energy assessment – information, data and analysis – than ISO50001

• The program also has more specific requirements for the identification and evaluation of opportunities, and the business response

EEO and ISO 50001

• There is the potential for EEO to recognise some components of ISO50001 in future

• the energy assessment component of ISO50001 could be better defined – while recognising national programs

• ISO reference to legal requirements suggests that EEO could be compatible with EEO

• Compatibility largely dependent on what emerges for energy reviews under ISO50001

Thank You

Web: www.energyefficiencyopportunities.gov.au

Email: energyefficiencyopportunities@ret.gov.au