MCE
The completion of Stage 1 of the National Framework on Energy Efficiency (NFEE) presented an opportunity to reflect on not only highlights over the last 18 months but also report on endeavours in preparation for NFEE Stage 2, which commenced in July 2008.
The effectiveness of the E3 program is not only measured by its achievements within Australasia but also its ability to impact global efficiency debates. Key achievements from Stage 1 are outlined below.
In 2007/08 Australia demonstrated how the international agenda can be influenced by domestic initiatives through the phase-out of inefficient lighting and through pushing the Standby power agenda.
On 20 February 2007 the Australian Government announced world leading action to reduce energy consumption and greenhouse gas emissions from domestic lighting. Through the E3 Committee, the federal and state governments have been working with industry to:
progressively remove the least efficient incandescent lamps in the market, including the familiar pear-shaped tungsten filament lamps, otherwise known as general lighting service (GLS) lamps of less than 150 watts
set mandatory standards for the efficiency and quality of compact fluorescent lamp (CFLs) substitutes
remove the least efficient Extra Low Voltage Converters from the market.
The first stage of the phase-out was banning the importation of ordinary GLS lamps from November 2008, followed by banning their retail sale from November 2009. Over the period till 2020, the proposed measures are projected to contribute 28.5 Mt CO2-e to abatement in Australia and 3.34 CO2-e in New Zealand; thereby reducing the cost of lighting services by AUD $2.2 bn and NZ $0.5 bn respectively.
The International Energy Agency estimates that globally, incandescent lamps consume 970 terawatt hours of electricity per year and result in greenhouse gas emissions of 560 million tonnes. Switching to CFLs (or other high efficiency lighting) will see energy savings of 800 terawatt hours and greenhouse gas abatement of 470 million tonnes – this is equivalent to 118 million cars off the road or 470 million new trees planted per annum.
The incandescent phase-out measure has had repercussions around the world. The week after the announcement, the European Commission announced its intention to move further and faster on efficiency, with an explicit mention of lighting. Equivalent moves are in the pipeline in the US, Canada and East Asia. As a leader in international efforts to develop global standards for CFLs, Australia held a workshop in Beijing to present Australian Phase-Out plans to over 50 Chinese officials and industry representatives (China produces 85% of the world’s CFLs).
As a further demonstration of its commitment to product compliance with mandatory MEPS and/or labels, the E3 Committee increased funding allocated to compliance and enforcement activities. A 2007-08 budget of $500,000 allowed for an increased number of check tests undertaken across all product categories.
The E3 program received international acclaim at an international compliance conference held in Paris in February 2008. E3 continues to be regarded as having the most rigorous compliance and enforcement regime of any country.
In 2007-08 as a world first, six companies voluntarily entered into agreements with the Department of the Environment, Water, Heritage and the Arts (DEWHA) to compensate both consumers (via cash rebates or appliance replacement with a compliant model) and the environment (by purchasing and retiring greenhouse gas abatement credits) when their products were identified as failing MEPS and/or labelling requirements.
A review entitled Review of Action on Energy Efficiency and Local Greenhouse Action Program was conducted for DEWHA in May 2008. This came at an opportune time because of questions surrounding the role of energy efficiency programs in the context of Australia’s broader climate change policies. The key findings of the review were that:
the E3 program should be considered a foundational energy efficiency program, which provides an essential underpinning for other energy efficiency activities that are directed to individual economic sectors or groups of energy users with common characteristics (such as government operations and local government)
an equipment energy efficiency program can be considered as an essential underpinning for any serious national energy efficiency effort
the particular range of activities undertaken within E3 over the past three years along with the way the program has operated both ensure that E3 is consistent with government priorities and achieves policy objectives:
The range of appliances and equipment subject to MEPS and labelling has steadily grown stringency of some MEPS categories has increased.
The 2005 consumer survey found that the energy label has a very high level of recognition.
The comprehensive stakeholder consultation processes that are critical to the success of the program were continued and expanded. Check-testing and in-store surveys were also continued to ensure program integrity and credibility with consumers.
quantitative analysis has estimated that significant energy savings and consequent emission reductions can be attributed to the application of MEPS to a growing range of appliance and equipment types
economic analysis found that greenhouse abatement occurred at a large negative cost, that is the program has continued to deliver net benefits to consumers and the economy as a whole through reductions in the economic resources distributed to the supply and consumption of energy. On these grounds, the program can be justified as an economic efficiency measure, even in the absence of greenhouse gas reduction legislation.
Commissioned by DEWHA, the most comprehensive study of residential energy use ever produced in Australia entitled Energy Use in the Australia Residential Sector 1986-2020 was released in 2008. The report:
provides a clear picture of the current breakdown of residential energy use
measures the impacts of MEPS and labelling of equipment and appliances
identifies trends in energy use by equipment and appliance until 2020.
This report highlighted the ongoing need for the E3 program, with residential sector energy use forecasted to increase rapidly – even with improved technologies and rising electricity prices. It allows E3 to identify and prioritise equipment and appliances for MEPS and labelling going forward, based on energy savings.
For example, the report identified televisions as the fourth largest user of household electricity, behind water heating, refrigeration and lighting. Without Government action, television energy use is predicted to double between 2004 and 2014. By 2020 energy usage in the household sector is also forecast to grow by 56 percent, emphasising the need for immediate, comprehensive and coordinated action on energy efficiency.
After 20 years of promotion, community awareness of the 6-star appliance Energy Rating Label scheme is almost universal, with most consumers having a good understanding of its basic concepts and features.
Nevertheless, highly efficient products are now bunched at the top end of the rating scale, disadvantaging both consumers who cannot access clear information to make cost and energy-saving decisions, as well as manufacturers who are not encouraged to continually improve their products since their energy-saving innovations are not easily recognised.
To resolve this issue, the scheme will be upgraded such that up to 10 stars can be awarded. The 6-star version will continue to appear on regulated product types, with the new 10-star version gradually transitioned in once industry is able to provide super-efficient products to the marketplace.