The Australian Government has opened consultations in relation to the development of a National Energy Performance Strategy (NEPS), aiming to provide efficient energy use and targets for better energy performance across the economy. The government is investing $15.2 million to develop the Commonwealth-led strategy.
A global study released in early 2022 found that Australia’s energy efficiency performance is the worst in the developed world, leaving Australian homes and businesses more vulnerable to current high energy prices.
Speaking from COP27 in Egypt, Energy Efficiency Council (EEC) CEO Luke Menzel said the crisis that has engulfed global energy markets will exist for years.
“Improving our energy performance is the only way to shake its hold on our economy, and set up our homes and businesses for a prosperous, net zero future.”
The consultation paper outlines a range of areas for improvement in Australia’s energy performance, from residential and commercial buildings to industry and energy market governance. The paper also seeks feedback on whether Australia should set an ambitious target for energy performance.
Mr Menzel applauded the Government’s interest in addressing energy market rules that make it harder for energy efficiency and demand management to contribute to lower costs and emissions.
“Our current energy market settings aren’t working. They need to be revamped, now more than ever, to ensure we cover all bases. Electrification, smart energy management and renewables all have a critical role to play in keeping bills down over time. It is great to see the Government exploring all the options available to kick-start a step change in energy performance in Australia.”
The EEC also welcomed the paper’s emphasis on developing skills and supply chains – two areas that will need significant attention to ensure the success of the strategy.
Analysis through the strategy will also explore the potential impacts of improving energy performance on the health and welfare of Australians including low-income and disadvantaged households, First Nations people, and regional communities.
The strategy aims to:
- accelerate the improvement of energy performance across the economy;
- lower energy costs for households, businesses, and industry;
- reduce pressure on the energy system; and
- lower emissions to reach net zero emissions by 2050.
The National Energy Performance Strategy consultation is open until 3 February 2023.
The consultation paper can be found here.
