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September 2006
PURSUING RENEWABLE ENERGY BUSINESS WITH CHINA
> PART C: CHINA’S RENEWABLE ENERGY ENVIRONMENT
> CHAPTER 1: BLAH BLAH BLAH BLAH BLAH BLAH
|
Australia’s Energy Efficiency
Market and Industry Capability
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART C: CHINA’S RENEWABLE ENERGY ENVIRONMENT
> CHAPTER 1: BLAH BLAH BLAH BLAH BLAH BLAH
Disclaimer
The views expressed in this report
publication are those of the authors
and the information is believed to be
accurate at the time of writing. The
Australian Business Council for
Sustainable Energy (BCSE) does not in
any way guarantee the accuracy of
any information or data contained in
this paper and accepts no
responsibility for any loss, injury or
inconvenience sustained by any users
of this publication or in relation to any
information or data contained in this
publication.
The views expressed herein are not
necessarily the views of the
Commonwealth, and the
Commonwealth does not accept
responsibility for any information or
advice contained herein.
Acknowledgements
The funding for this project was
provided by the Australian
Government, through the Department
of the Environment and Heritage,
Australian Greenhouse Office, and the
Australian renewable energy industry
through the Australian Business
Council for Sustainable Energy.
Australian Business Council for
Sustainable Energy
3rd Floor, 60 Leicester Street, Carlton,
Victoria, 3053
Australia
Tel: +61 3 9349 3077
Fax: +61 3 9349 3049
Email: bcse@bcse.org.au
Website: www.bcse.org.au
ISBN 0-9802806-4-8
September 2006
|
Contents
Part 1 3
1 Introduction 4
2.Overview of energy efficiency in Australia 5
2.1 Background 5
2.2 Energy Efficiency in the Commercial Building Sector 6
2.3 Energy Efficiency in Government Operations 10
2.4 Energy Efficiency in the Residential Building Sector 12
2.5 Energy Efficiency in the Industrial Sector 12
3.Australia’s energy efficiency industry capabilities, technologies and services 14
3.1 Insulation & building sealing 14
3.2 Energy efficient lighting 16
3.3 Glazing 17
3.4 Heating, cooling and ventilation 19
3.5 Metering and demand management 20
3.6 Ecologically Sustainable Design 21
3.7 Energy Performance Contracting 23
Abbreviations 26
Part 2 Australian Energy Efficiency Businesses
27
Annex 1 Government programs 50
Government Energy Efficiency Initiatives 51
Key Policy Mechanisms and National Initiatives
51
State Government Initiatives 55
—New South W
ales
55
—Victoria
56
—Queensland
58
—Western Australia
59
—South Australia
59
—Tasmania
60
—Australian Capital Territory
60
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 2: AUSTRALIAN RENEWABLE ENERGY BUSINESSES
> 1: BLAH BLAH BLAH BLAH BLAH BLAH
1
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 2: AUSTRALIAN RENEWABLE ENERGY BUSINESSES
> CONTENTS
2
List of Tables
Table 1: Where is the potential for energy efficiency in Australia?5
Table 2: Energy use by activity in the commercial and services sector 6
Table 3: Leading Commercial buildings in Australia 6
Table 4: Cost of sustainability measures 8
Table 5: Energy use by activity in the Australian residential sector,12
Table 6: Market share per insulation type 14
Table 7: Percentage of dwellings with insulation in Australia, 2005 14
Table 8: Major insulation manufacturing plants in Australia 15
Table 9: Principles of Ecologically Sustainable Design across the life of a building 22
Table 10: Energy Performance Contracts commissioned as at February 2005 25
Table A1: National energy efficiency standards affecting buildings and building occupancy 55
Table A2: Summary of other NSW energy efficiency support programs 56
Table A3: Other significant and current programs for energy efficiency in Victoria.57
Table A4: Queensland Sustainable Housing Code Requirements 58
Table A5: Queensland Energy Efficiency Programs 2006 58
Table A6: South Australian Energy Efficiency Programs 59
List of Figures
Figure 1: Australian manufacturing sector energy-related greenhouse gas emissions 12
Figure 2:Estimated lamp stock in Australia.16
Figure 3: Estimated energy consumption from lamp stock in Australia 17
Figur
e 4: Energy use by office buildings (tenant plus building services) sample of 215 in Australia 19
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 1: INTRODUCTION
3
|
Part 1
1
|
Introduction
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 1: INTRODUCTION
4
E
nergy efficiency measures aim to
r
educe energy consumption by
s
pecific design, end-use devices
a
nd systems, while at the same time
m
aintaining or increasing the level of
useful output or outcome delivered.
Such savings are generally achieved
by substituting technically more
advanced equipment to produce the
same level of end-use services (for
instance, lighting, heating, motor
drive) with less energy.
1
Using energy more efficiently is widely
recognised as the most cost effective
means of reducing greenhouse
emissions. Numerous studies have
also shown improving energy
efficiency can result in significant
economic benefits – for example, the
widespread application of energy
efficiency programs and initiatives can
cut energy costs, significantly boost
economic growth and lead to
substantial increases in employment.
This booklet provides:
• An overview of the energy
efficiency sector in Australia;
• An overview of energy efficiency
opportunities in the commercial,
government, residential and
industrial sectors;
• An introduction to the capabilities
and expertise of Australia’s energy
efficiency industry;
• Information on the companies and
businesses which are operating
within the energy efficiency sector;
and
• Information on the policy drivers at
a national and state level.
This publication is part of the “Doing
B
usiness in China” project, funded by
t
he Australian Government through
t
he Australian Greenhouse Office,
D
epartment of the Environment and
Heritage, which began in late 2005.
The project aims to improve market
opportunities between the Australian
renewable energy and energy
efficiency sectors and China.
The project has been managed by the
A
ustralian Business Council for
S
ustainable Energy (BCSE) in
c
onjunction with the Chinese
R
enewable Energy Industry
Association (CREIA), and with
assistance from IT Power (Australia)
and Mallesons Stephen Jaques.
1. Clean Energy Report 2006, Australian
Business Council for Sustainable Energy
,
May 2006
2
|
Overview of energy efficiency in Australia
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
5
A
ustralia has had national and state-
b
ased policies and programs for
energy efficiency and to support
demand-side management since the
1970s. The Australian Government
recognises that energy efficiency is
currently the single most cost
effective approach to reducing
greenhouse gas emissions, and that it
delivers real economic benefits.
Improving Australia’s energy efficiency
performance is therefore a key part of
the Australian Government’s climate
change strategy and its energy policy.
Australia is implementing a National
Framework for Energy Efficiency that
covers the residential, industrial,
commercial, government, and finance
sectors and provides for a nationally
consistent approach to the delivery of
energy efficiency policy in Australia.
For example, in addition to a world
leading program of minimum energy
performance standards and labelling,
all large energy users in Australia are
now required to assess and publicly
report on opportunities to improve
their energy efficiency,which is driving
greater awareness of the economic
and environmental benefits that
energy efficiency offers.
A
s a result of ongoing efforts in this
a
rea, Australia has built a strong skills
base and expertise in energy efficiency
including:
• The development and application
of energy efficient technologies
such as building insulation, energy
efficient lighting systems, and
more efficient heating systems;
• Best practice energy efficient
building design, construction and
operation;
• Energy assessment and analysis to
optimise energy performance in
industrial enterprises;
• Expertise to assist business in
training managers to identify and
implement more energy efficient
practices; and
• The development and application
of minimum energy performance
standards for appliances and
buildings
I
n Australia, recent studies have
s
hown that further energy efficiency
opportunities exist across the
commercial, residential and industrial
sectors. Analysis undertaken for the
National Framework for Energy
Efficiency estimated that implementing
all energy efficiency measures with a
payback of four years or less would
reduce residential energy use by 13%,
commercial energy use by 10.4% and
industrial energy use by 6.2%
(see Table 1 below).
2.1
|
Background
TABLE 1: WHERE IS THE POTENTIAL FOR ENERGY EFFICIENCY IN AUSTRALIA?
Sector
Ener
gy ef
ficiency
Ener
gy end use
Percentage of Energy Efficiency Percentage of
potential (%)
2000-01 (PJ)
ener
gy use (%)
Potential (PJ)
ener
gy ef
ficiency
potential
Manufacturing and mining 6.2 1250.0 67 78 51
Commer
cial 10.4 224.0 12 23 15
Residential
13.0 399.5 21 52 34
T
otal
1873.5
100
153 100
Sour
ce:
Securing Australia’
s Ener
gy Futur
e,
Australian Gover
nment 2004
2.2
|
Energy Efficiency in the Commercial Building Sector
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
6
TABLE 3: INDICATIVE COST OF SUSTAINABILITY MEASURES
Building Services
Savings $/pa Cost of Payback Scope
Element Initiative
in Years
Chilled water pump $4,172 $11,000 2.64 Install variable
speed drives
Condenser water $3,872
$12,000 3.10
Install variable
pumps
speed drives
Cooling tower fans $2,767 $7,000 2.53 Install variable
speed drives
Water cooled chillers $14,348 $61,000 4.25 Increase efficiency
of chiller
Primar
y supply air
$15,480 $19,500 1.26 Install variable
fans
speed drives
Base floor lighting
$39,131
$184,615
4.72
Install higher
performance lights
BMCS commissioning $19,934 $25,000 1.25 More thorough
BMCS tuning
T
otal
$99,704 $304,115 3.21
T
he commercial building sector has an
i
mportant role to play in energy
efficiency initiatives as it makes up 9%
of Australia’s greenhouse gas emissions
and is growing rapidly
2
.Significant
potential exists in this sector for
improvements in energy use, particularly
through changes to management and
maintenance practices. With 90% of the
Australian commercial property market
designed prior to the introduction of
building energy rating systems such as
the Australian Building Greenhouse
Rating, a wide variation exists in energy
performance and use by different
buildings. Therefore, implementing
change provides both challenges and
opportunities for the industry.
The type of activities for which energy is
used in commercial buildings is shown
in Table 2 below. It can be seen that
nearly two thirds of all energy is used
for the heating, cooling and ventilation
of buildings, with lighting accounting for
a further 18%. The use of office
equipment accounts for a quite modest
share of total consumption.Natural gas
is the main fuel used for space heating,
water heating and cooking, whilst use of
electricity dominates all other activities.
TABLE 2: ENERGY USE BY
ACTIVITY IN THE COMMERCIAL
AND SERVICES SECTOR
Activity Shar
e of Percentage
total ener
gy use
Air handling
15%
Space cooling 18%
Space heating 32%
Pumping
3%
W
ater heating, cooking etc.
6%
Lighting
18%
Other 8%
Sour
ce: A Clean Ener
gy Futur
e for
Australia, 2005
I
mplementing initiatives with a
s
ustainability focus in existing buildings
can result in significant increases in
capital value as well as reductions in
energy consumption and improvements
in productivity and comfort. Simple
and cost effective solutions exist to
increase building performance and
property values that will deliver
worthwhile financial returns within
realistic timeframes. For commercial
buildings, large energy savings can be
achieved through cost-effective energy
savings measures already available in
the marketplace including:
• Installing more efficient lighting
systems;
• Replacing Heating, Ventilation and
Air Conditioning (HVAC)
equipment with more efficient
units and improving the efficiency
of existing HVAC systems;

Testing and sealing air distribution
d
ucts;
• Optimising performance and
management of building energy
systems;
• Buying energy efficient office
equipment (such as those with an
Energy Star rating
3
);
• Replacing inefficient office
equipment with more energy-
efficient products.
Replacing lighting systems in
commercial buildings with more
efficient fixtures, lamps, ballasts, and
improved controls can save more than
50% of lighting energy use. A recent
report
4
estimated that the payback
period for many lighting efficiency
improvements in commercial buildings
averages only 1.3 years. Installing
more efficient fans, chillers, and
packaged air conditioning equipment
in commercial buildings can reduce
2. Clean Energy R
eport 2006, Australian
Business Council for Sustainable Energy,
May 2006. Unless other
wise stated, all
figures and percentages quoted in this
document are from that report
3. ENERG
Y ST
AR is an international standard for energy efficient electronic equipment.
It was created by the US Environmental Protection Agency in 1992 and has now been
adopted by several countries around the world, including Australia. The Australian
Government and State and T
erritory Governments are cooperating through the national
ENERGY STAR program to encourage the use of energy efficient equipment at home and
in
business. http://www
.energystar.gov.au/about/index.html
4. The New Mother lode: The P
otential for More Efficient Electricity Use in the Southwest,
A repor
t in the Hewlett F
oundation Energy Series November 2002, Southwest Energy
Efficiency P
roject, (http://www
.swenergy
.org)
also introduced requirements based on
t
he Australian Building Greenhouse
R
ating Scheme
7
(
ABGR).
The ABGR scheme provides
accredited assessments of the
g
reenhouse intensity of office buildings
b
y awarding a “Star” rating on a scale
o
f one to five. A building with a high
Star rating will be more energy
efficient and cheaper to run,and will
result in lower greenhouse gas
emissions. A rating of three Stars
represents current market practice.
Table 4 lists commercial buildings and
tenancies in Australia with 5 Star
ABGR ratings. The number of 5 Star
buildings and tenancies has increased
from 8 last year to 25 now,while the
4.5 Star buildings and tenancies have
increased from 4 to 13 buildings in
the same timeframe.
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
7
overall electricity consumption by
1
4–18%, with a payback of 1.3–3
y
ears on the incremental first cost (see
T
able 3). Testing and sealing air
d
istribution ducts can save 9-15% of
a building’s total electricity
consumption, with a payback period
of 2.8–3.4 years on average. In
addition, energy-efficient office
equipment can reduce total electricity
consumption by 15–20% in office
buildings at minimal incremental
cost
5
.
Cogeneration is yet to play a major
role in Australia’s commercial building
sector. Cogeneration is not as
financially attractive as other energy
efficiency measures primarily due to
low electricity and gas prices.
However,there are a number of small-
scale combined heat and power
installations in the commercial sector,
particularly in hospitals which have
significant heat and steam loads,
unlike most of the rest of the sector.
These loads include laundries, hot
water, space heating and sterilisation.
There is potential for greater use of
small-scale cogeneration in Australia
and in other locations with a high on-
site heat demand in addition to
electrical load.
ACCREDITED GREEN BUILDINGS &
BUILDING RATING SYSTEMS
The Australian Government has
mandated minimum performance
standards for commercial buildings,
through the Building Code of
Australia
6
.These standards set
minimum performance requirements
for wall, floor and roof insulation;
glazing; air-conditioning, lighting,
building sealing; ventilation and hot
water supply services for all new
commercial buildings or existing
buildings undergoing a significant
refurbishment. In addition,some
major cities and governments have
5. The New Mother lode: The P
otential for
More Efficient Electricity Use in the
Southwest, 2002.
6. More information about the Building
Code of Australia is available at:
http://www.abcb.gov.au
7. See http://www.abgr.com.au
8. http://www.propertyoz.com.au
owners and property valuations.
I
ndeed, Australia’s major commercial
b
uilding owners and managers
a
ssociation, the Property Council of
A
ustralia, is introducing environmental
factors into its building quality rating
scheme, which is used to set rental
rates and property values
8
.
Prior to the introduction of
sustainability rating tools, the link
between actual design concept,
construction quality, site commissioning
and ongoing building management was
not well understood or addressed. This
was particularly an issue at practical
completion, with commissioning
predominantly focused on the issue of
the Certificate of Occupancy.It is now
recognised that improving building
performance and sustaining that
improvement is achieved when all
issues are dealt with as part of the
overall design and operational strategy
for the building, which may be more
time consuming than some in the
industry previously believed.
Australia’s approach to greening of
buildings is unique in the world, the
combination of design and performance
measures creating a significant shift in
market capacity to deliver energy
efficient “green” buildings.
Anecdotal evidence from energy
ser
vice companies indicates that there
is continuing growth in projects driven
by building owners seeking to improve
ratings in order to let space and obtain
leasing commitments. Leading
building owners are now,in turn
,
encouraging their tenants to improve
their energy efficiency.As more new
buildings adopt energy performance
benchmarks the skills of Australian
architects, designers (mechanical and
electrical), and system suppliers will
be tested and developed, creating a
new and likely unique capability that
will be in high demand as the rest of
the world develops similar
performance measures.
In addition to the list in Table 4, other
energy efficient buildings have been
designed and built, but have not been
rated or have been commenced after
this date. For example, the BCSE is a
tenant of 60 Leicester Street – the
“Green Building” in Melbourne. This
building incorporates a number of
leading-edge environmental features
that set benchmarks for minimising
greenhouse emissions.
All these buildings incorporate a
variety of technologies, equipment,
and operational practices. These range
from ecologically sustainable design to
solar photovoltaics integrated into the
fabric of the building, solar water
heaters or heat pump units,
daylighting technologies and external
climatic landscaping to increase
energy efficiency and other
sustainability goals.
To date, sustainability (i.e. in this
case, the implementation of energy
efficiency practices and technologies)
has not been a significant factor in
valuation models used by most
building owners, investors or valuers.
However
,this is expected to change in
the near future, and will be reflected
in purchase yields, net return to
A
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> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
8
TABLE 4: LEADING COMMERCIAL BUILDINGS IN AUSTRALIA
Building Owner State Size m
2
Energy Use Rating Green
(MJ/m
2
/yr) Type Power
4
0 Albert Rd. Szencorp Sustainable Vic 1215 312 Whole 100%
Development Building + NGACs
E
nergy Conservation Energy Conservation NSW 260 231 Tenancy
Systems Pty Ltd
Systems Pty Ltd
Level 2,5,8,10,12,13 EnergyAustralia NSW 12486 305 Tenancy 69%
Roden Cutler House
EA Wallsend Administration EnergyAustralia NSW 1066 Whole 100%
Building Building
EnergyAustralia Head EnergyAustralia NSW 29815 972 Whole 71%
Office Building Building
William McCormack Place Department of QLD 6642 568 Whole Building
Public Works
Westpac 60 Martin Place Mowlem Sodexho NSW 36457 568 Whole Building 50%
Wagga Wagga Field Country Energy NSW 741 1223 Whole Building 92%
Service Centr
e
Kelso Corporate Office Country Energy NSW 3471 Whole Building 100%
Midland Government Offices Midland Government WA 1100 113 Whole Building 0%
Offices
Esperance Gover
nment Esperance
W
A
428
312
Whole 0%
Of
fices Government Offices Building
W
estpac 111 Phillip St Mowlem Sodexho NSW 1872 647 Tenancy 45%
Par
ramatta
Civic T
ower Bankstown City
NSW
5090 461
T
enancy
50%
Council
AMPCI Pr
operty AMP Capital Investors NSW 620 308 Tenancy 0%
Levels 15 and 16
5 Har
vest T
ce 5 Harvest Tce WA 88 378 Whole Building 0%
7 Har
vest T
ce
7 Har
vest T
ce
W
A 67 355 Whole Building 0%
Department of Housing Department of NSW 3446 279 Tenancy 0%
Parramatta Office Housing
30 The Bond DB RREEF NSW 20489 287 Base Building 0%
Department of Disability, NSW Businesslink NSW 1262 393 Whole Building 0%
Aging and Home Car
e
Pty Ltd
Roden Cutler House
Ener
gy Australia
NSW 926 Base Building 100%
30 The Bond
Lend Lease
NSW
21134
220
T
enancy
0%
Depar
tment of Commer
ce
Department of
NSW
1554
485
Whole 9%
Lismore Regional Office Commerce Building
ITSRR Tenancy ITSRR NSW 2792 140 Tenancy 0%
Big Switch Pr
ojects Big Switch Projects NSW 140 249 Tenancy 83%
W
estpac 80 Geor
ge St
Mowlem Sodexho NSW 4887 509 Tenancy 32%
Par
ramatta
Sour
ce: www
.abgr
.com.au
A
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> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
9
CASE STUDY
VicUrban’s Melbourne offices set a
new standard for quality office fit-
outs. Design features are combined
to optimise productivity and put
environmental, social and economic
sustainability into practice. The
energy savings are predicted to be
60%, and construction costs versus
average market tenancy fitout are
approximately 15% less.
The overall design and layout has
been optimised to allow for abundant
natural light, with large, high
performance window units to the east
and west. The building management
system monitors the glare, heat and
amount of light transmitted through
these windows, and blinds,
ventilation, comfort control and
artificial lighting are automatically
activated to maintain the internal
comfort of the tenancy, and indoor air
quality has been considered
especially in the selection of paints
with zero volatile organic compound
emissions and low emission sealants
and adhesives.
The cost of the construction was
AUD 935/m
2
(compared to market
average of AUD 1,100), and the
predicted energy use is 153
MJ/m
2
/annum – compared to 400
MJ/m
2
/annum for standard building
tenancies. For more information
please refer to case studies from the
Commercial Office Building Energy
Innovation Initiative (COBEII) of
Sustainability Victoria,
http://www.sustainability.vic.gov.au/w
ww/html/1474-case-studies—-
sustainable-commercial-office-buildin
gs.asp?intSiteID=4.
VicUrban Melbourne Offices
10
M
ost state governments and the
A
ustralian Government apply energy
efficiency schemes within their own
operations. For example, the Victorian
government requires tenancies it
occupies to achieve a 4.5 star ABGR
rating, as well as requiring agencies to
achieve a 15% energy saving between
2000 and 2005. Under the Australian
Government’s policy,
Measures for
Improving Energy Efficiency in
Commonwealth Operations,
government agencies are encouraged
to apply minimum energy performance
standards to new buildings, whether
these be owned or leased.
This policy also requires the
preparation of an annual whole-of-
government report on the total energy
use and estimated greenhouse gas
emissions of Australian Government
departments and agencies. The
reporting process is subject to public
scrutiny through tabling of the report
in Parliament
9
.The 2004-05 Report
can be viewed at:
http://www.greenhouse.gov.au/govern
ment/energyuse/index.html
A
round Australia there have been a
n
umber of initiatives for improving the
energy performance of school
buildings through implementing
ecologically sustainable design
principles. One of the initial high-
profile schools was the Woodend
Primary School, which embarked on
an AUD $1.7 million school expansion
and refurbishment in 1998. Initial
energy efficient design considerations
were stimulated by the Victorian
Government’s ‘Energy Smart Schools
Program’. This grew into the ‘Healthy
School Project’ with the realisation
that indoor air quality is already a
major issue overseas and a key factor
in the control of asthma. Woodend
Primary School made the decision to
establish a ‘Healthy School’ along the
lines of the United States
Environmental Protection Agency’s
Indoor Air Quality Program For
Schools
10
.
T
he Woodend ‘Healthy School’ project
w
as a benchmark for other schools in
Australia, and the project was seen as
an investment in children’s future. The
rewards are clear:
• A better learning environment for
students;
• Reduced absenteeism due to
illness (asthma in particular);
• Better working conditions for staff;
and
• Significantly reduced operating
costs for the school.
Since 1998, there have been many
new and renovated schools around
Australia which have been designed to
incorporate innovative sustainable
design principles, in order to reduce
energy consumption, and to improve
health and well-being within the
school.
A
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> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
2.3
|
Energy Efficiency in Government Operations
9. The 2004-05 Report can be viewed at:
http://www
.greenhouse.gov
.au/government/
energyuse/index.html
10. http://www.healthyhouse.com/
cs_woodendschool.html
A
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> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
1
1
CASE STUDY
Lumen Christi Primary School
The project brief asked for the design
and construction of a highly energy
and water efficient – and sustainable
– school hall, not reliant on
conventional mechanical air
conditioning. The result was a
building with an impressive list of
Environmentally Sustainable Design
(ESD) features: the new school hall is
a far cry from the original lightweight,
energy intensive design.
Reverse Brick Veneer:
This wall
construction technique has brickwork
on the inside and timber framing and
weatherproof membrane on the
outside, with a substantial layer of
insulation in between. This
construction method, with the
thermal mass on the inside of the
building, creates a better thermal
performance for the building.
Window Orientation and Size:
All
windows were brought around to the
north (sun-facing) side of the
building, and the size optimised
according to the floor area. This
allows for good net heat gains in
winter.Summer heat gain is impeded
via the solar eave. Low-e type glass
was used to retain the maximum
amount of heat in winter.
Solar Eave:
An eave was constructed
on the north face of the building to
provide total shading of the windows
in summer,whilst allowing winter sun
to passively heat the building.
Mounted on the eave is a 1.9 kWp
grid interactive photovoltaic system, a
two panel solar hot water system and
a four collector solar air handling
system (Sun Lizard
TM
).
Solar Air Moderating System:
The
Sun Lizard
TM
is an innovative product
that provides solar winter heating and
air circulation
,which reduces air
stratification in winter and removes
heat in summer.
Subsurface W
ater Storage System:
A
rainwater tank was installed under
the building. Rainwater is captured
from the roof area and run to the
20,000L underground cavity via a
sediment filter.The water is utilised
for toilets in the new hall, and for
watering of the gardens. At the lowest
point of the structure, pipes were
installed through which air is pre-
cooled and introduced into the
tuckshop and meeting room in the
building during summer
.This system
works in conjunction with the Sun
Lizards, extracting heat from the hall
with air introduced to the inlet pipes
from a shaded garden area on the
south side of the building.
Insulation and Heat Transfer:
A very
high level of insulation has been used
in the new hall, including insulation
of the roof, walls and slab edge. The
new hall is connected to an existing
library,which overheats in summer
and is overheated in winter.The new
building is designed to capture and
reuse or extract the heat generated in
the library through vents that connect
the two buildings.
Landscaping:
Vegetation was
recommended to help moderate the
micro-climate. Trees act as wind and
sun protection; vines on the exterior
walls provide an external layer of
insulation
.The students were
encouraged to culture and maintain
the vines, watch them grow and be
involved with the project.
Clockwise from top left: reverse brick veneer and the solar eave (note the
shadow on 25th December); north-facing windows; PV panels on the
eave; Sun Lizards on the eave; observation window for the underground
water storage; installing the rainstore system; the ‘cool garden’ & air
intake pipes; slab-edge insulation; foil and bulk roof insulation.
12
2.5
|
Energy Efficiency in the Industrial Sector
Energy saving opportunities exist in
both the motor,the motor-driven
device (e.g., fan,compressor, or
pump), and in overall motor system
design. These measures include
replacing oversized motors, cutting
unnecessar
y flows and friction losses
in fluid systems, improving gear ratios,
changing fan pulleys or trimming
pump impellers, and replacing
throttling valves with adjustable speed
drives or other speed control devices.
Electricity use can drop by 5 – 50%
depending on the characteristics of the
initial system.
Compressed air systems often present
a significant opportunity for cost-
effective energy savings through
cutting leaks and inappropriate uses.
Inappropriate uses of compressed air
might be to operate micro-turbines
(where an electric motor could be
used much more efficiently) or where
high pressure compressed air is used
for cleaning or drying when low
pressure air from a blower would be
sufficient. Other energy savings can be
made by reducing operating pressure,
improving maintenance, and installing
better controls. The overall savings
range from 25 to over 60%.
The consumption of natural gas for
heat raising and process use results in
significant opportunities for the uptake
of cogeneration particularly when the
existing steam raising plant needs to
be replaced.
Between 1990 and 1999, the
Australian manufacturing sector’s
energy related greenhouse gas
emissions increased by 11%. The
metals industries – mainly aluminium
and iron & steel – produce the most
emissions as they consume the most
fossil-fuel generated electricity (see
Figure 1 below). The steel industry
also consumes large quantities of
coking coal.
FIGURE 1: AUSTRALIAN
MANUFACTURING SECTOR
ENERGY-RELATED GREENHOUSE
GAS EMISSIONS
F
or the purposes of this document the
r
esidential sector is defined as
comprising all energy using activities
which people undertake in their
homes and gardens. It does not
include private use of motor vehicles,
boats, aircraft or business activities.
11
TABLE 5: ENERGY USE BY
ACTIVITY IN THE AUSTRALIAN
RESIDENTIAL SECTOR, ACTIVITY
SHARE OF TOTAL ENERGY USE
Appliance
Percentage
Electric appliances etc.
29%
Water heating 28%
Cooking 4%
Space heating and cooling 39%
I
n the residential sector, the major
e
lectricity savings opportunities are in
the areas of lighting, water heating,
appliances and air conditioning. Use
of more energy efficient lamps can
save approximately 630 kWh per year
per home, over two-thirds of the
energy used for lighting in a typical
home. The estimated payback period
for these efficiency measures is around
2.4 years on average. Electricity
required for water heating can be cut
by 50% or more through measures
that lower hot water use as well as
increase the efficiency of water
heating. Substantial electricity savings
also will occur when older appliances
such as refrigerators and freezers are
replaced with new models.
T
he current growth in residential
s
ector energy use in Australia is being
driven by a combination of factors.
The number of households is growing,
the number of people per household is
declining and the average size of new
homes is increasing. The growing
popularity of large capacity air
conditioners is dramatically increasing
the peak demand (in summer) for
electricity. There are also energy-
intensive trends towards central
heating, brighter lighting, wider use of
halogen lighting and more and larger
home entertainment systems and
televisions. The current figure for
household greenhouse emissions from
energy use is about 2.8 tonnes per
person.
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
2.4
|
Energy Efficiency in the Residential Building Sector
11. As defined in the July 2006 V
ictorian P
arliament’s Environment and Natural
Resources Committee Governor in Council to Iinquiry into the Eenergy Sservices
Iindustry. Much of the data from the residential sector is taken from this report.
http://www.parliament.vic.gov.au/enrc/inquiries/energyservices/Final%20Report%20on%2
0the%20Inquir
y%20into%20the%20Energy%20Services%20Industry.pdf
Other
industry 17%
60% Metals
6%
Wood
Chemicals 10%
Food
processing 7%
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 2:OVERVIEW OF ENERGY EFFICIENCY IN AUSTRALIA
1
3
CASE STUDY
Bordo International is a small
Australian firm supplying high-quality
industrial cutting tools and
accessories. When new warehouse
and office premises were required
due to expansion plans, the company
made a conscious decision to build
for the future – not just theirs, but
future generations in term of reducing
their ecological footprint.
After engaging an accredited Green
Star architectural firm (SBE), a
comprehensive specification was
developed for the site. This has
included a building users guide (i.e.
to effect behaviour change),
commissioning of an Environmental
Management Plan, and
implementation of a waste
management plan.
The new building is comprised of
office areas and a large warehouse
space. One of the first design
decisions was to change the
traditional design of office and
warehouse together, to split them
allowing the long sides of the office
building to the north and south. Not
only did this allow for more natural
light and ventilation,but also created
a courtyard for staff
.
Indoor air,noise and thermal quality
has been addressed by:
• Careful building orientation
• Natural ventilation of the building
• R
educed tinting on glazing
• Glare control devices / louvres
• High frequency ballasts
• Individual thermal comfort
controls and openable windows
• Internal noise levels to satisfy
AS/NZS 2107:2000 requirements
• Indoor air pollutants minimised
via low VOC adhesives, paints,
and sealants.
The building has achieved a 5 Star
ABGR award. A 68% reduction in
energy consumption has been
achieved through:
• Improved roof insulation: R-8.0
• Insulated thermal mass: R-2.1
• Natural ventilation
• Local heating/cooling systems
• Air lock to corridor
• Solar hot water heating
• Sub metering to allow effective
energy management
• Office lighting specified to
consume 2.5W/m
2
/100 lux
The payback on these ESD
components is between 3.7 – 7.8
years, and the predicted energy
intensity of the building is only 192
MJ/m
2
/annum. The net increase in
construction cost savings was 0.8%,
and the predicted operating costs per
annum are expected to be AUD
4,576. The estimated greenhouse
gas reduction is 97 tonnes
CO2/annum.
For more information, please refer
http://www.sustainability.vic.gov.au/w
ww/html/1474-case-studies—-
sustainable-commercial-office-buildin
gs.asp; and
http://www.sbe.com.au/frames/frame
mainpages/fr_projects.html
Bordo International
From 2001, all three-phase electric
motors from 0.73 kW to 185 kW
must meet Minimum Energy
Performance Standards (MEPS). The
new standards are set out in
Australian/New Zealand Standard
AS/NZS1359.5:2000. MEPS remove
from the market products deemed to
be unacceptable because of their low
energy efficiency. The standards and
regulations also define minimum
efficiency levels for motors designated
as ‘high efficiency’ so that the best
per
formers can be easily identified by
potential customers. Over the next
15 years, MEPS is expected to save
4 million tonnes of greenhouse gases
produced in electricity generation, and
reduce costs for motor users by up to
A
UD 165 million through lower
energy bills.
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USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 3: AUSTRALIA’S ENERGY EFFICIENCY INDUSTRY CAPABILITIES, TECHNOLOGIES AND SERVICES
14
A
ustralia has a wide variety of
business sectors and residential
areas across a landmass with a
b
road range of climatic zones, ranging
f
rom tropical to desert to cool
t
emperate. The local energy efficiency
industry is therefore experienced in
providing technology and design
solutions in a diverse range of
environments to suit global needs.
Cost-effective and robust technologies
have been developed in Australia to
improve comfort levels in buildings,
w
hile reducing costs. Innovation to
i
mprove cost-effectiveness is important
i
n the local market because of the
relatively low cost of energy.
This has lead to Australian companies
developing technologies and expertise
that is world-competitive in such areas
a
s:

Building insulation (wall, cavity,
r
oof,floor);
• Energy efficient lighting systems;
• Window construction (glazing),
• Heating ventilation and air
conditioning;
• Metering;
• Building design; and
• Energy assessment and analysis to
optimise energy performance.
3.1
|
Insulation & building sealing
TABLE 6: MARKET SHARE
PER
INSULATION TYPE
T
ype
Market share
Cellulose fibre 10%
Reflective foils 16%
Polyester 14%
Glass & Rock W
ool
50%
Others
10%
homes. This compares with 52% of
homes 20 years ago
.In 2005, of the
homes that had insulation, nearly
98% had ceiling/roof insulation and
30% had wall insulation
.Table 7
provides a summary by State.
TABLE 7: PERCENTAGE OF
DWELLINGS WITH INSULA
TION IN
AUSTRALIA, 2005
State % insulated % insulated
homes in homes in
Capital City balance of
states/
ter
ritories
NSW
49.1
63.3
QLD
41.5 44.7
SA
77.6
80
TAS 73.6 75.3
VIC
71.4 74.4
WA 66.8 62.4
AUS T
otal 60.1 61.3
Source: Australian Bureau of Statistics,
4602.0 Envir
onmental Issues: People’
s
views and Practices, 2005
Insulation is a very cost-effective way
of saving energy and reducing
greenhouse gas emissions while
creating a more comfortable home
and work environment. Conservatively,
in an average Australian home, ceiling
insulation can save up to 25% of the
heating and cooling bill and wall
insulation can offer a 15% saving.
The majority of insulation materials
used in Australia are manufactured
locally, representing in excess of AUD
400 million in annual sales, and
employment (both direct and indirect)
in Australia and New Zealand of over
5,000 people in the manufacture,
distribution supply and installation of
insulation products.
Australia’s insulation industry includes
products for residential, commercial
and industrial markets encompassing
two broad product categories – bulk
insulation (which includes glasswool,
rockwool and other materials) and
reflective insulation. These are
available as a number of different
insulation products. The market use of
these materials varies and includes the
types of insulation listed in Table 6.
According to the Australian Bureau of
Statistics 2005 survey
12
,around 4.7
million homes in Australia have
insulation – equivalent to 60% of all
3
|
Australia’s energy efficiency industry
capabilities, technologies and services
12. Australian Bureau of Statistics,
4602.0 Environmental Issues: P
eople’s
views and P
ractices, 2005, Canberra
15
The CSR glasswool manufacturing
facility upgrade at Ingleburn, NSW
was commissioned in April 2006 and
cost a total of AUD 28 million. The
plant now has a second production
line, which increases glasswool
production by 50% up to 28,000
tonnes per year. 80% of Ingleburn’s
raw material is recycled glass; and
the emissions control equipment
results in the plant producing less
than 10% of maximum emission
limits. All Bradford Australian plants
are accredited to ISO 9002 quality
standards. CSR operates two
glasswool insulation plants in
southern China with four rockwool
factories in Clayton, Victoria, southern
China, Thailand and Malaysia.
For more information refer BCSE’s
EcoGeneration, Issue 36, September-
October 2006.
CASE STUDY
CSR Bradford Manufacturing Facility
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1.
INTRODUCTION
> 3: AUSTRALIA’S ENERGY EFFICIENCY INDUSTRY CAPABILITIES, TECHNOLOGIES AND SERVICES
The amount of energy saved through
insulation is dependent on a number
of factors including, but not limited to:
• the house size;
• appliances used; and
• climate zone.
In a city such as Sydney it is probable
that, in a typical home, ceiling
insulation could save between 1,300
to 3,400 kWh per annum. Using an
average saving of 2,350 kWh per
annum results in estimated
greenhouse emission savings across
Australia of 11 million tonnes per
annum.
TABLE 8: MAJOR INSULATION MANUFACTURING PLANTS IN AUSTRALIA
Company Product Facility
Fletcher Insulation Glasswool Dandenong, VIC
Fletcher Insulation Building paper plant Homebush, NSW
Fletcher Insulation Glasswool and foil Rooty Hill, NSW
Fletcher Insulation Polyester Minto, NSW
CSR Bradford Glasswool Ingleburn, NSW
CSR Bradford Rockwool Clayton, VIC
Australia’s insulation industry
incorporates over 20 manufacturers of
insulation products for the residential,
commercial and industrial markets.
The two leading companies in the
industry – Fletcher Insulation and CSR
Bradford Insulation – account for
around 70% of market share with the
remaining 30% supplied by around 20
smaller manufacturers. These include
Cool and Cosy, Tontine, Auspoly and
Austex.
2949 Efficiency_Pages_22 9/10/06 5:17 PM Page 15
3.2
|
Energy efficient lighting
FIGURE 2: ESTIMA
TED LAMP STOCK IN AUSTRALIA
Source: Greenlight Australia Discussion Paper NAEEEP Report 2004/0519.
With current widespread use of
energy-inefficient lighting such as
incandescent and halogen lumieres,
and limited use of efficient lighting
including daylighting and motion
sensor control, energy efficient lighting
in Australia falls well short of what is
technically and economically viable.
Products are available with similar
features and performance but much
greater energy-efficiency.On an
economic level these more efficient
lighting technologies provide a
financial return well above mark
et
per
formance for comparable low risk
financial investments (such as
superannuation funds and banks).
Australia has recently implemented a
joint industry and government
initiative to improve energy efficiency
of Australian lighting through its
Greenlight Strategy
13
.Current lighting
stock, according to the 2004
Greenlight discussion paper, is
outlined in Figure 2.
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
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16
Another range of technologies to
r
educe heating and cooling energy
n
eeds is that of door and window
s
eals. In addition to stopping building
h
eat loss (or gain in summer) from air
leaks around doors and windows,
seals provide benefits such as
exclusion of weather, noise, fire,
smoke, insects and vermin. Raven
Sealing Products, with headquarters in
Adelaide, South Australia, is one
innovative Australian company that
has already had success in China with
their door and window seals.
Mandatory energy efficiency levels are
a
major driver for uptake of insulation.
F
rom May 2004, minimum
m
andatory energy efficiency levels for
n
ew residential construction have
been progressively introduced
nationally through the Building Code
of Australia. From May 2006, similar
minimum energy efficiency
requirements will be progressively
introduced for new commercial
building construction. In NSW, the
government’s Building Sustainability
Index (BASIX) scheme for mandatory
e
nergy efficiency in new homes and
m
ajor renovations also gives impetus
t
o the increased installation of
i
nsulation. The BASIX scheme requires
that, in order for a house to get a
building permit, the building envelope
must meet a specified thermal
performance level in summer and
winter. Similarly, the national 5-Star
regulation requires an overall annual
level of thermal performance. For both
5-Star and BASIX, effective insulation
and other energy efficiency measures
are needed to achieve the specified
levels of thermal performance.
13. Australian Greenhouse Office/National
Appliance & Equipment Energy Efficiency
Committee, Greenlight study, available
from http://www
.energyrating.gov.au
100
90
80
70
60
50
40
30
20
10
0
Lampstock(millions)
■ Residential
■ Commercial
■ Industrial (incl.Warehousing)
■ Public amenity – Cat P
■ Public amenity – Cat V
■ Traffic signalling
GLS
Incandescent
reflector
Halogen
mainsvoltage
Halogen
lowvoltage
Linear
fluorescent
Compact
fluorescent
Highpressure
sodium
Metal
halide
Mercury
vapour
A
USTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
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1
7
3.3
|
Glazing
summer through glazed areas when
we don’t want it to, and heat transfers
out in winter.These common
scenarios do not provide the optimal
situation for maximising efficiency in
relation to controlling temperatures in
our buildings. However, there is
significant demand from both
commercial and residential consumers
for glazed areas, despite Australia’s
climatic challenges.
Effective use of glass in Australian
buildings is an important issue given
that ordinary glazing has little ability
to prevent the loss of required internal
heat or the ingress of unwanted heat.
Heat transfers into a building in
Overall energy consumption from this
l
amp stock is outlined in Figure 3.
There are a number of opportunities
for improving energy efficiency in
lighting in Australia both within lamp
t
ypes and associated technology and
t
hrough driving technology type
s
witching (e.g. switching from
incandescent to compact fluorescent).
The Greenlight Strategy (referenced
above) outlines many of the
opportunities and contains a number
of initiatives aimed at driving
improved levels of efficiency through
minimum energy performance
standards and information programs.
FIGURE 3: ESTIMATED ENERGY CONSUMPTION FROM LAMP STOCK IN
AUSTRALIA
GLS = General light sour
ce, or conventional incandescent lamp
Source: Greenlight Australia Discussion Paper NAEEEP Report 2004/05.
16
14
12
10
8
6
4
2
0
Energyconsumption(TWhp.a.)
■ Residential
■ Commercial
■ Industrial (incl.Warehousing)
■ Public amenity – Cat P
■ Public amenity – Cat V
■ Traffic signalling
GLS
Incandescent
reflector
Halogen
mainsvoltage
Halogen
lowvoltage
Linear
fluorescent
Compact
fluorescent
Highpressure
sodium
Metal
halide
Mercury
vapour
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
> PART 1. INTRODUCTION
> 3: AUSTRALIA’S ENERGY EFFICIENCY INDUSTRY CAPABILITIES, TECHNOLOGIES AND SERVICES
18
Windows with ordinary clear glass are
the path of least resistance for
powerful summer heat. With ordinary
glazing, 87% of the heat enters a
building through the window areas.
Conversely, of the heat lost from a
building with ordinary glazing, 49% is
lost through the windows. As a
consequence residential buildings are
using 60% more energy to heat and
cool than is necessary. With close to
70% of new homes in Australia now
installing air-conditioning, the
increased electricity distribution
infrastructure cost to support these
cooling loads is soaring
14
. In all
climates, the installation of energy
efficient glazing in conjunction with
passive solar design and insulation
will reduce or negate the need to
install any artificial cooling systems –
returning an environmental and
economic advantage for the life of the
building.
Developments in building technology
and the increased use of glass in
contemporary architecture mean it is
more important than ever to carefully
consider the choice of glazing when
building or renovating. A wall of
windows to let an abundance of
natural light into residential and
commercial buildings, to integrate the
indoor and outdoor areas, and to
create a healthier and improved
environment, is a popular choice for
homeowners, builders and architects.
Advanced glazing systems such as
tinted, coated, spectrally selective and
double-glazed windows allow for these
benefits while ensuring that buildings
meet thermal efficiency requirements
such as the 5-Star rating scheme.
Local energy efficiency requirements
such as 5-star have resulted in
increased investment by Australian
industry in factories and capital
equipment to meet the increased
demand for energy efficiency products.
Demand has risen sharply since the
introduction of building-related energy
regulations and will continue to do so
as architects and designers and
builders realise the critical connection
between achieving energy efficient
buildings and the use of energy
efficient glazing. Major home builders
in States where 5 Star energy
requirements have been adopted are
finding that the use of energy efficient
glazing is a very practical and
economical way to achieve energy
compliance.
It has also meant a rapid increase in
the manufacturing capacity for these
products. A coating plant in
Queensland has now had
improvements with a capital value of
more than twice its original cost. Two
new fully automatic double glazing
lines have been commissioned within
the last three months, one of which is
matched by only one other plant
within the entire southern
hemisphere/Asian region. As a result,
Australia’s capacity to supply world
class performance glazing is such that
demand could increase threefold
before additional capacity is required.
The Australian Glass and Glazing
Association (AGGA) has recently
introduced an accredited installer
system for the glazing of safety and
laminated safety glass. All members
undergo training and testing of their
knowledge of the Australian Standard
for Selection and Installation of Glass
in Buildings (AS1288). These
installers are skilled tradespeople who
have agreed to a set code of conduct
and who have qualified to apply an
AGGA certification label to any
laminated safety glazing undertaken
15
.
AGGA is also working on the
establishment of an energy rating
scheme for windows using an
internationally-accepted framework. In
conjunction with this, AGGA has
developed a software tool known as
the Glass & Window Toolbox. This tool
will enable industry participants to
match any glazing with a given frame,
calculate the performance parameters
of the resultant window or glazing
system and produce the information
necessary to allow that window to be
modelled within a building energy
rating software program. It will also
produce a certificate for each job lot of
windows allowing, among many other
things, final checking against
compliance energy requirements.
The Insulating Glass Manufacturers
Association (IGMA) is the Organisation
which represents the Australian
Manufacturers of Insulating Glass
Units (IGUs), more commonly known
as Double Glazed Units. All IGUs
bearing the IGMA label are tested to
Internationally Approved Standards.
All manufacturers of IGUs adhere to
the IGMA Quality Assurance Program.
Any units purchased from one of these
manufacturers will be a quality unit
made to exacting Standards.
Over the last few years, there have
been significant advances in glazing
technologies and products. Many of
these now offer:
• Substantial reductions in heat
transfers;
• Greatly enhanced design freedom;
• Significant price reductions; and
• Quicker returns on investment.
The local glazing industry has reported
that increased demand for energy
efficient glazing is leading directly to
extra investment in manufacturing
capacity, and in turn lower costs for
these products.
14. Australian Ministerial Council on
Energy, June 2004
15. http://www.agga.org.au/
accreditation.htm
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1
9
provide better part load efficiency.
Australia has also developed robust
heat exchange and humidity reduction
technologies that allow incoming fresh
air to be heated or cooled by outgoing
stale air,fur
ther reducing the energy
used by HVAC systems.
Reductions in peak demand for
heating and cooling make possible
substantial reductions in capital
investment in HVAC equipment,
improve staff comfort and reduce peak
electricity demand charges. In an
analysis of the cost-effectiveness of
energy efficiency measures in the
Building Code of Australia
17
,it was
found that in many cases the
reduction in peak cooling loads and in
the resulting HVAC capital costs offset
the additional cost of building
envelope improvements. New designs
of evaporative coolers and heat
exchangers allow energy and water-
wasteful cooling towers (which are
also Legionella concerns) to be
replaced with units offering viable
alternatives and net energy savings.
Australian companies are also
supplying energy-efficient building
ventilation systems that utilise wind,
stack (air flow from temperature
differentials) or hybrid wind/electric
ventilation.These further reduce the
need for large electric powered
ventilation systems.
Australian industry capability in the
HV
AC sector is wide-ranging, with
expertise in innovative hardware
design,consultancy,system design
and integration and natural ventilation
systems.
Heat output from lighting, cooking and
other equipment adds significantly to
cooling loads. Efficiency improvements
in these areas will reduce heat output
and will deliver flow-on savings effects
by reducing the need for air
conditioning to remove this heat. Air-
conditioning energy consumption
reduction resulting from better
appliance efficiency is typically
10–30%, depending on air-conditioner
efficiency,building characteristics and
climate. Many existing commercial
buildings have low thermal mass, little
or no insulation,high rates of air
leakage and unshaded single glazing.
This increases the effective building
area that needs to be air-conditioned,
and the air-conditioning load that
needs to be met.
New Building Code requirements in
Australia will significantly improve this
situation for new buildings. New
HVAC technologies are being
developed to meet these lower loads,
such as variable speed drives, and
multiple chiller control systems that
H
eating, Ventilation and Air
C
onditioning (HVAC) systems
comprise a third to over half of all
commercial sector greenhouse gas
emissions in Australia
16
.Around 40%
of HVAC energy relates to fans and
pumps, a fifth to heating and 40% for
cooling. In many parts of Australia, a
large proportion of the cooling task is
the removal of latent heat (reducing
humidity) rather than sensible heat
(lowering air temperature).
Studies have shown that there is a
large percentage of Australian office
buildings that use far more energy
than the average (see Figure 4). These
high energy usage buildings have
significant potential for energy savings.
FIGURE 4: ENERGY USE BY OFFICE BUILDINGS (TENANT PLUS
BUILDING SERVICES) SAMPLE OF 215 IN AUSTRALIA
Sour
ce: Exer
gy
,2003
3.4
|
Heating, cooling and ventilation
16. EMET study for Australian Greenhouse
Office, 2005 & W
ilk
enfeld, G, Energy
Efficient Strategies study for Australian
Greenhouse Office, 2002
17. R
efer to Regulatory Impact Statement
(RIS) at http://www
.abcb.gov
.au
16
14
12
10
8
6
4
2
0
Percentageofsampleof215
0-400
400-500
500-600
600-700
700-800
800-900
900-1000
1000-1100
1100-1200
1200-1300
1300-1400
1400-1500
1500-1600
1600+
Whole building energy use (MJ/m
2
p.a.)
60L Building
3.5
|
Metering and demand management
Before the electricity is fed into the
grid it passes through a meter. This
meter is used for billing purposes and
allows electricity to flow to and from
the grid.
There are a number of technology
developments and innovative projects
in Australia, which are being
enhanced by the use of increasingly
‘smart’ meters. Pilot projects are
currently being pursued that involve
the use of smart meters in
households. There are many
advantages to this. For instance, real
time metering allows the household to
receive one bill for all household
energy and water consumption.
Customers can have the choice of
accessing and paying their bills online,
eliminating the need for paper billing.
The Australian Government’s Solar
Cities initiative
18
will further enhance
industry capability by encouraging
smart metering, particularly of peak
energy demand and photovoltaic
power generation.
Smart meters are now being installed
in commercial buildings providing
valuable data on energy use, load
power factor and peak demand. A
range of total metering solutions are
available, such as reports of building
electricity usage via the Internet, and
household utility usage display
systems. These systems will provide
enhanced capacity to identify energy
waste and improve management of
energy demand.
Real time metering allows for real time
pricing to be implemented. Real time
pricing uses different energy and water
tariffs for different times of the day
and year. This pricing system
encourages peak load reductions when
energy supplies run low and therefore
the retailer can avoid buying electricity
Electronics and technology have
advanced to the point where real-time
metering of the consumption of
resources within a home, office or
industrial complex is economically
possible. With the installation of
‘smart meters’ customers are able to
access and view information about
their electricity, water and gas usage
on an instantaneous basis and actively
manage their energy usage to
minimise costs and environmental
impacts.
Renewable electricity systems such as
solar and wind, produce direct current
(DC) electricity. This electricity is fed
into an inverter to convert it into
alternating current (AC). A kWh meter
measures the amount of electricity
generated before it is used within the
building. If the amount of electricity
being generated is greater than the
electricity required within the building,
electricity flows into the local grid.
This showcase bakery owned by
Bakers Delight in Sydney has cut
nearly one third from its annual
power bill. Greenhouse gas emissions
have been cut by even more – by
48%.
These savings were achieved by an
innovative and comprehensive
approach to energy efficiency: almost
every piece of equipment was
improved in terms of energy
performance, and the staff, once
committed to change, became very
zealous about saving energy at work.
Equipment improvements included
the following:
Oven: 20% energy cost savings. Door
fully insulated, with no glass window;
improved seals fitted to all four sides
of the door; energy efficient light.
Oven hood: 74% energy costs
savings. Design improved and
adjustable variable speed drives fitted
to supply and exhaust fan motors.
Lighting: 64% energy cost savings.
The energy used by the lighting
system was reduced from 3.4 to 1.5
kW, whilst maintaining lighting levels
standard in bakeries.
The project was a joint initiative
between Bakers Delight, industry
suppliers, and the Australian
Government’s Best Practice program.
CASE STUDY
Bakers Delight, Mascot, Sydney
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
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20
18. http://www.greenhouse.gov.au/
solarcities/index.html
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3.6
|
Ecologically Sustainable Design
• Environmental considerations and
energy efficiency become a part of
building design and purchasing
criteria, consistent with such
traditional criteria as product
safety,price, performance, and
availability;
• Energy efficiency and
environmental performance are
evaluated and valued consistently
using a “systems” approach during
the entire use-phase of a building;
and
• The process for establishing
“sustainable” building/product
criteria should include consensus-
based decision-making, best
available science, transparency,
and openness to all relevant
stakeholders.
The importance of incorporating the
principles of ecologically sustainable
design into the planning and design of
buildings is intensifying in Australia,
as building owners, developers and
authorities recognise its significance.
Key ecologically sustainable design
principles are summarised in Table 9
below.
The best time to include energy
efficient principles and technologies in
a building is at the design stage.
Australia has an experienced range of
architects and designers who have
been responsible for leading-edge low
energy use buildings both locally and
overseas.
The ideology behind ecologically
sustainable design is to substantially
lessen the impact of buildings on the
environment through energy and
resource efficiency
,across their entire
life cycle – from design conception,
through use, to demolition. The
objectives of ecologically sustainable
design are to:
• enhance individual and community
well-being and welfare by
following a path of economic
development that safeguards the
welfare of future generations;
• provide for equity within and
between generations; and

protect biological diversity and
maintain essential ecological
processes and life support
systems.
The challenge in the Australian mark
et
is to mainstream ecologically
sustainable design, so that:
on the exorbitantly expensive spot
m
arket
19
.
Australian companies, in
c
onjunction with energy users groups,
a
re designing innovative demand
m
anagement strategies to effectively
sell demand reductions into the
electricity market, particularly at
periods of high electricity demand,
and high electricity prices.
Smart meters increase the customers’
ability to ‘shift load’ or to implement
demand-side management strategies.
This is particularly important for peak
load shaving, as well as decreasing
electricity bills. Demand management
systems, being trialled now in different
areas within Australia, allow for the
remote control of heating and air
c
onditioning, appliances, lighting and
o
ther electrical systems. Australian
c
apability for automatic load reduction
t
echnology is expected to be enhanced
as Solar Cities trials progress, as
discussed above.
For residential systems, the majority of
demand management systems use
telephone/internet networks to
remotely program and control
household electrical devices. The
utilisation of demand management
gives the householder the capacity to
switch on appliances at certain
periods throughout the day thereby
s
moothing out the peaks relating to
w
ater and energy requirements. This
a
lso reduces the household’s
e
lectricity bill by taking advantage of
real time (off peak) tariffs. In the
longer term, smart meters and
controls will allow demand to be
managed to match the availability of a
range of electricity sources such as
wind and solar, by shifting loads that
are not time-critical.
In the private sector, increasingly
residential and commercial building
developers are embracing ecologically
sustainable design principles, due to
government mandatory requirements,
but also because they are finding that
environmentally-sustainable
developments attract a higher price
premium from customers who are
concerned about the environment.
Residential developers include
VillaWorld, Devine, Delfin Lend-Lease,
and Metricon.Developers of
commercial buildings, such as Lend
Lease, are also finding that returns are
higher for AGBR-rated buildings.
Australia has many leading-edge
designers and consultants in this field.
For instance, Australian company
DesignInc, has been responsible for
many ecologically sustainable design
projects in Australia. At the design
stage, the Council House Two (CH
2
)
building was awarded a six star rating
by the Green Building Council of
Australia, based on a comparison of
environmental performance in
commercial properties.
19.
Coomes report on metering systems
for the Urban Land Authority Epping Nor
th
project, 2002
Commercial Office
C
lient:
M
elbourne City Council
Architects:
DesignInc
Value:
AUD 60 million
Known as CH2, this striking building
sets a new international standard in
Ecologically Sustainable Design
(ESD), incorporating sustainable
initiatives at every possible point and
for every possible function. The
building has been awarded Australia’s
first six star “Green Star” rating by
the Green Building Council of
Australia.
CH2 is the result of collaboration
between DesignInc Melbourne
(architects) and the City of Melbourne
(local council). The innovative design
process driven by client and
consultant team workshops allowed
for extensive review of sustainable
concepts and possibilities that were
methodically assessed and
investigated, with the best holistic
alternatives eventually becoming the
final design.The main aim of the
project was to produce a healthy
work environment for the City of
Melbourne’s 550 staff,which would
act as a benchmark for future city
office developments.
Initiatives catered for in the design
include 100% fresh air throughout
the building, extensive daylight to all
floors, heat removal through thermal
mass, and chilled beam and ceiling
units to assist in heat removal. Waste
water harvesting, purification and
storage, internal air purging assisted
by roof turbines, and shower towers
to cool water and purify air that is fed
to ground floor retail tenancies for
cooling systems were also
incorporated.
Due to the environmental benefits of
ecologically sustainable designed
buildings, traditional ideas around
internal architecture and space usage
were exchanged for solutions that
provided benefits for the entire
organisation.The design emphasis
was aimed at not only utilising the
latest sustainable design concepts,
but to meet the stringent
requirements of the then-newly
developed Green Star Rating process.
CASE STUDY
CH2
TABLE 9: PRINCIPLES OF ECOLOGICALL
Y SUST
AINABLE DESIGN ACROSS THE LIFE OF A BUILDING
Site analysis
Design
Constr
uction
Final building use
V
erification for
Climate Architecture Embodied energy What will it be used for Energy Ratings
Topography Engineering services Transportation Vernacular architecture Emissions validation
and trading
Envir
onmental impacts Use of building Energy used on site Wastes – disposal and Benchmarking
r
esource recycling
V
egetation / wildlife
Building ser
vices
Minimal envir
onmental
Energy – how used and
disturbance
r
esour
ced fr
om
sustainable source
Sensory impacts – Equipment and material Staff requirements –
visual, auditory, smell selection amenities, transportation
etc
to site
Hydr
ology
Cultural factors
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23
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
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INTRODUCTION
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3.7
|
Energy Performance Contracting
auditors, advisers, energy managers,
energy performance contractors as
well as cogeneration developers.
Energy Performance Contracts (EPCs)
combine the supply of energy
commodities with financing and
assistance in improving the efficiency
of equipment and buildings and
investment in boilers and combined
heat & power. The services provided
include: energy management systems;
energy audits; installation, operation
and maintenance of equipment; low
cost finance; and fuel and electricity
purchasing. For a guaranteed level of
energy service provision, the contract
allows the host company to lower risk,
avoid capital expenditure, reduce
energy costs and concentrate attention
on the core business.
By updating or replacing equipment
that is old and obsolete with newer,
more efficient technologies, the client
will have lower energy use and
greenhouse emissions, higher-quality
systems, fewer breakdowns and
reduced maintenance.In addition,
improving the lighting, air quality and
room temperatures in buildings can
contribute to producing more
comfortable, and therefore productive,
working environments.
Energy Performance Contracting
allows the building owner or occupier
to divert funds that would be spent on
energy bills into investments in the
facilities. For all building owners, more
modern, efficient energy systems can
increase the property value and
improve building marketability.
Building owners can potentially make
energy savings of 15% – 35% and
also reduce their long-term
maintenance costs. They keep all the
savings once the equipment is paid
off, plus any excess savings during the
contract term.
Energy Performance Contracting is a
smart, affordable and increasingly
common way to make building
improvements that save energy and
money. Any large building or group of
buildings is an ideal candidate for
performance contracting, including
council, state and federal sites,
schools, hospitals, commercial office
buildings and light industrial facilities.
Participants in this industry provide
energy services and products rather
than energy itself. It directly focuses
on the needs that arise from a
customer’s energy use – for example
the supply of lighting, heating and
cooling products. The energy services
industry also focuses on assisting
customers better manage (or reduce)
their energy needs; this ranges from
design and engineering to
construction, operation and
maintenance. It also includes energy
The Beijing Hua Yu Hong Yi project,
where DesignInc is also involved,
offers over 170,000 sq metres of
contemporary commercial, retail,
leisure and apartment living in Beijing.
The development is composed of a
series of residential and commercial
towers rising above an organic base of
retail and leisure space that reinforces
the street edge. The 30 storey
commercial building is composed of
two linked towers that will create a
landmark on the adjacent expressway.
All of the buildings are integrated into
landscaped grounds.
There are over 600 architectural firms
around Australia registered on the
website of the Royal Australian
Institute of Architects who are expert
in ecologically sustainable design
across the residential, commercial and
industrial building sectors
20
.
There are also a number of
engineering companies at the cutting
edge of ecologically sustainable design
in Australia, assisting in providing
integrated solutions for sustainable
development within the built
environment. For instance, Sinclair
Knight Merz is undertaking research
projects with Deakin University, and
developing an Environmental
Assessment system to benchmark
Australian buildings against
international Best Practice. This
involves investigating the use of
embodied energy in commercial
buildings.Embodied energy is the
total energy required to build,
refurbish and demolish a building and
can account for up to 40% of the total
energy consumption of a building over
its lifespan.
20. http://www.raia.com.au/
i-cms?page=3939
2949 Efficiency_Pages_22 9/10/06 5:17 PM Page 23
This is the first Australian building
refurbishment to be awarded a six
Star Green Star rating and five star
Australian Building Greenhouse
Rating (ABGR) whole building rating.
The refurbishment of this 1987 four-
storey office building took 18 months
to complete and cost AUD 6.2
million (including fitout). This 1,200
m
2
office building in South
Melbourne now has four levels of
office space and two levels of car-
parking. It is the new headquarters of
the Szencorp group of companies,
who provide expertise in sustainable
business, including water, energy
efficiency, renewable energy and
property development. The vision is
leading by example, with numerous
Australian ‘firsts’ incorporated into the
refurbishment.
For instance, the DryKor conditioning
unit uses desiccant technology to dry
and cool the office space
simultaneously, while the ceramic fuel
cell provides both heat and electricity.
The whole building is greenhouse gas
neutral, while the building
management system maximises
environmental efficiency and
occupant comfort. A rooftop weather
station monitors wind speed and
direction, rainfall, atmospheric
pressure and temperature to provide
data to the state-of-the-art building
management system. The building
has natural ventilation, a gas-boosted
solar water heater, and BP Solar and
Shott Solar modules on the roof and
pergola; these generate a combined
total of 8.3 MWh/annum
The result is exemplary in terms of
energy efficiency and indoor
environmental quality. However, this
is not simply a demonstration
building: 40 Albert Road contains
many sustainable innovations that are
both commercially viable and
practical for any office refurbishment
project today.
Overall, there is a 70% reduction in
energy use compared to conventional
office buildings; an 82% reduction in
piped water use; 72% reduction in
sewer discharge; and 30% of all
energy is self-generated.
For more information please refer
BCSE’s EcoGeneration Issue 32,
December 2005, and
http://www.staging.sustainability.vic.g
ov.au/resources/documents/40_Albert
_Rd_Casestudy.pdf
CASE STUDY
Szencorp Building, 40 Albert Rd Melbourne
AUSTRALIA’S ENERGY EFFICIENCY MARKET AND INDUSTRY CAPABILITY
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24
CASE STUDY
The NSW Attorney General’s
Department has undertaken an AUD
804,970 lighting and air conditioning
upgrade project at five of its
courthouses, under an Energy
Performance Contract. Energy
Performance Contracting, pioneered
by the NSW Government, is a smart
way of financing energy efficiency
upgrades whereby future energy
savings pay for the cost of the
upgrades.
Government
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TABLE 10: ENERGY PERFORMANCE CONTRACTS COMMISSIONED AS
AT FEBRUARY 2005
Classification Number of Total Cost Annual savings
o
f Project projects (AUD$) (AUD$ pa)
Health Care 36 52,387,491 7,704,463
E
ducation 9 8,503,579 601,714
Of
fice Buildings
22 12,881,392 1,663,698
Other Buildings 11 12,311,915 2,490,780
Industrial 5 104,066,568 21,365,489
Local Government 20 15,465,304 2,088,934
Defence 1 150,000 50,150
Totals 104 205,766,249 35,965,230
Source: Australasian Energy Performance Contracting Association (AEPCA)
21
Energy Performance Contracting can
deliver energy cost savings in a
financially attractive manner.In many
cases the major incentive is to
generate a high return on the cash
expended however this is not always
so. In many instances customers are
also seeking improvements to capital
plant; enhanced operation; abatement
of greenhouse gas (with or without
cash benefits), and other benefits.
As illustrated in Table 10, Australian-
based companies involved in EPCs
have experience across a broad range
of industrial sectors and are delivering
multi-million dollar energy saving
projects in areas as diverse as co-
generation, lighting, HVAC systems,
advanced energy and process control
equipment. Since the late 1970s,
Energy Performance Contracting has
become a widely accepted and
reliable way to make energy
improvements. Today’s Energy Service
Companies (ESCOs) use industry-
standard practices and proven
energy-saving technologies and have
excellent track records for satisf
ying
their customers. ESCOs have a
financial incentive to make sure
savings are achieved throughout the
contract term.
Table 10 shows that as at 21
February 2005, a total 104 Energy
P
erformance Contracts were
c
ommissioned in Australia. The largest
p
roportion of EPCs is classified under
Health Care with 35%, followed by
Office Buildings (21%) and Local
Government (19%). In total, nearly
AUD 36 million of cost savings are