Carbon Training International

The Department of Resources, Energy and Tourism has released the first report on actions under the Energy Efficiency Opportunities (EEO) program. “First Opportunities, A Look at Results from 2006-2008 for the Energy Efficiency Opportunity program” notes the following:

• Opportunities have been identified to save more than 6 million tonnes of CO2-e per year (1.1% of Australia’s total emissions for 2006-07)
• As of December 2008 corporations reporting under the program had assessed 1,019 PJ of total energy use “identifying opportunities with energy savings of 67.7 PJ, or 6.6% of their assessed energy use….yielding a potential financial return of $736 million if these projects are implemented.[i]”

To put this energy saving in context, 67.7 PJ is the equivalent total energy consumption of 1.4 million Australian households.

It is interesting to note that the aluminium, ferrous metals and oil and gas industries who strongly opposed the introduction of the CPRS (i.e. a price on carbon) were at the forefront of those identifying substantial opportunities to save energy by way of the EEO program.

The identified energy savings are expected to deliver net annual financial benefits of $736 million from projects with a payback period of less than 4 years. Of these identified financial savings, $530 million relates to projects with a payback period of less than two years.

With energy prices continuing to increase, the argument to implement energy efficiency measures is compelling.

Whilst the EEO program is directed at large Australian businesses, the opportunity for the SME sector to improve efficiency, reduce emissions and save money should not be overlooked.

Developing the requisite skills within organisations to drive energy efficiency and other emissions strategy must be a high priority for all sectors of the business community, civil society and households.

The provision of competency based workplace training is the most efficient means of gaining these skills.

Electricity prices have, and will continue, to increase. The Financial Review today reports that Western Australian electricity prices need to increase by 75% over four years to reflect the true cost of electricity.[ii]

[i] First Opportunities Report http://www.ret.gov.au/energy/Documents/energyefficiencyopps/PDF/EEO_FirstOpportunitiesReport_2010_FINAL.pdf

[ii] Australian Financial Review 8 March 2010, page 8.