Doubling energy productivity by 2030, saving $30 billion each year

News date: Wednesday April 8

Doubling energy productivity by 2030, saving $30 billion each year

The Australian Alliance to Save Energy welcomes the release of the Energy White Paper, which recognises ‘increasing energy productivity to promote growth’ as one of the three key planks of its energy policy framework.

A2SE strongly supports the Government’s commitment to rapidly improving Australia’s energy productivity. A2SE chairman Jon Jutsen said that:

“Energy costs equate to about 10% of Australia’s GDP (more than $110 billion/year). We have relatively low energy productivity combined with high and escalating energy prices. Our low energy price competitive edge is eroded and we’re now at a growing disadvantage.

The White Paper suggests that a national improvement target of up to 40% by 2030 is possible. Research by A2SE and by ClimateWorks indicates that energy productivity could be doubled by 2030 using currently available technologies and practices. Competitive pressures will necessitate this level of improvement. The USA has already adopted a target to double its energy productivity by 2030 and other countries also have aggressive targets. There is a strong business case for industry to improve energy productivity and payback periods are shrinking.

A2SE is advocating a 2xEP target and is currently supporting business to develop roadmaps in each sector of the economy to achieve these benefits. We expect that several sectors will have their roadmaps prepared by July.”

We recognise that sectors will require differentiated targets as, for example, the mining sector has been experiencing declining energy productivity in the last decade due largely to declining ore grades. However, overall 2xEP seems economically feasible and over the 15 years to 2030 further new technologies will increase the potential further.   

A2SE estimates that if Australia doubles energy productivity by 2030 there will be a 2.8% increase in real GDP ($2000 per capita), a $30 billion savings in energy spend and a 20% reduction in greenhouse has emissions.

A2SE welcomes the White Paper and is looking forward to contributing to the development of the National Energy Productivity Plan, and collaborating to deliver outcomes.

Media contact: Jon Jutsen 0418 510 109


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