The Australian government is making significant strides towards achieving its net zero emissions target by implementing an energy efficiency strategy. The Department of Climate Change has launched the National Energy Performance Strategy, aimed at improving energy performance and reducing costs across various sectors.
One of the key elements of the strategy is the promotion of electrification or fuel switching. This involves transitioning to electricity-powered technologies or cleaner sources of energy. Assistant Minister for Climate Change and Energy Jenny McAllister emphasized the importance of households in this renewable energy transformation, encouraging the installation of solar panels and batteries to work in conjunction with the broader energy market.
The strategy identifies five key focus areas: the economy, households, communities, businesses and industry, the energy system, and technology and innovation. It aims to introduce reforms that provide greater access to tools that deliver transparency on the energy performance of homes, workplaces, and appliances. These changes in minimum standards and energy efficiency transparency have already saved Australians an estimated $12 billion to $18 billion in energy costs from 2011 to 2022.
Flexible demand is also highlighted as a significant factor in achieving cost savings for consumers. This includes controllable electric vehicle charging and batteries, which could generate up to $18 billion in cost savings through lower capital and wholesale prices in the National Electricity Market by 2040. Furthermore, the strategy anticipates that 20 percent of global emissions reduction by 2030 will be achieved through electrification.
Climate Change and Energy Minister Chris Bowen expressed confidence in Australia’s plan to drive action on the demand side of the energy market. The government aims to collaborate with state and territory governments, industry, communities, and First Nations peoples to ensure the successful execution of the strategy.
To support the development and implementation of the strategy, the Australian government has allocated $15.2 million until 2026. This investment demonstrates the government’s commitment to achieving a net zero economy and driving economic transformation through renewable energy.
Greg Combet, Chair of the Net Zero Economy Agency, revealed that the government is set to unveil the next phase of its energy transformation approach in the May budget. This phase will leverage Australia’s abundant minerals and renewable energy resources to encourage large-scale investment in green industrial production. Combet highlighted the significant role of large-scale generation in transforming the economy, while also acknowledging the importance of incentives for rooftop solar and home and community battery storage.
In a joint statement, Re-Alliance and the Community Power Agency emphasized the crucial role of local energy hubs in advancing clean energy. These hubs have the potential to engage communities and ensure they benefit directly from energy infrastructure developments. By providing education and support, these hubs can empower individuals to participate actively in the transition to clean energy.
The implementation of the National Energy Performance Strategy in Australia marks a significant step towards achieving a net zero economy. By focusing on energy efficiency, electrification, and transparency, the strategy aims to reduce costs, drive economic transformation, and empower communities to actively participate in the shift towards renewable energy. With the government’s commitment and investment, Australia is well on its way to realizing its clean energy goals.
