Government releases National Energy Performance Strategy

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has released the National Energy Performance Strategy (NEPS), which it says will work towards reducing energy bills, lowering greenhouse gas emissions, and improving energy security and reliability. The federal government has committed to providing $15.2 million until 2026 to implement the strategy.

According to the DCCEEW, the 48-page energy performance plan was compiled with input from stakeholders including all levels of governments, community service organisations, businesses, industry peak bodies, and First Nations people.

HVAC&R plays a key role in the strategy, which includes measures focused on energy efficiency, electrification, and demand flexibility. The strategy also incorporates several initiatives that are particularly relevant to HVAC&R professionals:

• Expanding the National Australian Built Environment Rating System (NABERS) to new commercial building types, including schools, retail, and government buildings. This includes the NABERS Universal Benchmark for buildings that don’t fit neatly into other assessment categories
• Delivering $1 billion for household energy performance upgrades – including for energy-efficient appliances such as air conditioners – via the Clean Energy Finance Corporation
• Delivering $300 million for energy upgrades to social housing
• Providing up to $310 million in tax relief to small businesses via the Small Business Energy Incentive
• Expanding the Clean Building Managed Investment Trusts withholding tax concession to cover more types of green buildings
• Delivering $62 million to small and medium enterprises in energy efficiency grants
• Streamlining, expanding, and modernising the Greenhouse and Energy Minimum Standards (GEMS) framework.

Minister for Climate Change and Energy Chris Bowen identifies lowering energy bills as a major aim of the strategy.

“Energy performance is about energy savings and bill savings,” Bowen says. “We want more Australians to have the choice to save on energy and save on bills, and this strategy, along with our large investments’ energy saving upgrades for households and businesses across the country, does just that.”

EEC responds

The Energy Efficiency Council (EEC) has welcomed the release of the NEPS, but says more needs to be done to unlock the full potential of efficiency and electrification in Australia.

EEC CEO Luke Menzel says the NEPS highlights the crucial role of energy performance in the energy transition.

“We know Aussie families and businesses are doing it tough right now,” Menzel says. “The NEPS makes it clear that energy efficiency paired with electrification is one of the best ways of easing those cost-of-living pressures. And as well as saving us money, energy performance improvements represent a huge unrealised emissions reduction opportunity.”

However, he urges the government to use the NEPS as the starting point for ambitious policy action in months ahead.

“The NEPS provides a framework, but there is an urgent need to build out the policy and programs that will deliver the benefits of efficiency and electrification to Australian households and businesses.”

The EEC is also calling for:

• A national effort to rapidly scale up electrification and thermal performance improvements in homes, with a particular focus on vulnerable households
• Expansion of Australia’s commercial building rating and disclosure framework
• Improving industrial energy performance through support for manufacturers and food processors to better measure and manage their energy use
• Accelerated implementation of critical appliance ratings and standards
• Reforms to energy system governance to better include energy performance in system planning, and reducing over-investment in energy infrastructure.

The National Energy Performance Strategy is available at the DCCEEW website.