28 June, 2013

Energy Efficiency Opportunities

The Gillard Government had recently released the Regulation Impact Statements (RISs) for the extension of the EEO Program to new development and expansion projects, and electricity and gas transmission and distribution businesses. 

The new developments RIS has shown clear net cost and energy saving benefits and the Federal Government had confirmed that it is proceeding with New development and major expansion projects.   
In its July 2011 Securing a Clean Energy Future package, the Australian Government announced it would extend the EEO Program to include new developments and expansion projects which meet an energy use threshold when operational will be required to assess the site from the initial design concept through to commercial operation.
A series of regulatory changes have been proposed to modify the existing EEO Assessment Framework to align with design stage processes. The proposed changes draw on feedback from stakeholder consultations through 2011 and 2012 and a series of trials with companies which assessed the application of the assessment and reporting framework, and evaluated costs and benefits for the regulation impact statement. 

However, the Government will not proceed with the electricity and gas networks extension. The Regulation Impact Statement (RIS) for the extension of the EEO program to electricity and gas transmission and distribution businesses.

Analysis shows the costs of expanding the program would exceed the benefits and as a result the Federal Government will not proceed with this extension.  The networks pass on the costs of losses to users, so there is no economic benefit (or drivers) for them to reduce such costs.

Amendments to the EEO regulations have been made that remove the expiry date of the current exemption of transmission and distribution businesses.

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