Draft Energy Strategy SLT Submission

SustainableLivingTasmania(SLT)wouldliketothanktheGovernmentfortheopportunitytocommentonthedevelopmentoftheTasmanianEnergyStrategy. Thefollowingcontainsmainlyspecificcommentsaboutparticularelementsofthestrategydocument.

4.1.3EnergyEfficiency

SLTstronglysupportstheGovernment’seffortstoimproveresidentialandbusinessenergyefficiency.Energyefficiencyhasthepotentialtoprovidesubstantial,cost-effectivesavingstohouseholdsandbusinesses;therebyreducinghardshipandfreeingupmoneyandenergytobeutilisedmoreproductivelyinotherpartsoftheeconomy.

SLThasdeliveredmanyenergyefficiencyprogramsoverdecades.Inthepastthreeyears,thesehaveincludedtwoTasmanianGovernmentprograms,“PowerSavingsforTenants”and“EnergyChampions”.WearealsocurrentlyimplementingtheAustralianGovernment’sLowIncomeEnergyEfficiencyProgramnamed“GetBillSmart”inpartnershipwiththeUniversityofTasmaniaandMissionAustralia. Throughthosethreeprogramswehavevisitedmorethan4,000Tasmanianhouseholds,deliveringtargetedupgradesandadviceonenergyefficiencyandachievingsubstantialsavings,demonstratedthroughanalysisofparticipants’billingdata.

EnergyChampions

TheEnergyChampionsprojecthassuccessfullydeliveredaqualityenergyefficiencyserviceto3,306Housing

Tasmaniaproperties. Overalltheprojecthasbenefitted7,062residents,including928peopleovertheageof

65. Intotal,9,587hours(4.9full-timeyears)wherespentdeliveringserviceswithinHousingTasmaniaproperties.

Theservicedeliveredenergyefficiencyupgradesandeducationsessions. Intotalalmost25,000lightswerechanged,4,800doorsdraft-proofedandover2,000showerheadsreplaced. Theseupgradeshavecontributedtoestimatedwatersavingsof127,000kLperyear,valuedatover$120,000peryear. AnanalysisofenergybillingdatainDecember2013showedthattheaveragehouseholdwassaving3.3kWhperdayfromtheirbills,equatingto$262perhouseholdperyear($866,172peryearacrosstheproject).

Theprojecthasbeenfavourablyreceivedbytargethouseholds. Therehasbeenanincreaseinwarmth,with

20%moretenantsreportingtheywerewarmintheirlivingroom.Thisisbackedupbyverbalreportsandunsolicitedthanksfromprojectclients.

PowerSavingsforTenants

ThePowerSavingsforTenantsprojectdelivered813homeenergyefficiencyvisits.Theseincludedupgradesandbehaviourchangesessions.Overallthesebenefittedatotalof813households,with2,068tenants. Ofthesearound6%whereagedpensionersand22%camefromsingleparenthouseholds.

Theprogramhasdeliveredtangiblebenefitstothehouseholdsthatparticipated. ThecollectionofbillingdatafromAuroraindicatesthattheaveragehouseholdhasreducedtheirenergyusageby2.4kWhperday.Thisequatestoaround$190peryearoracombinedtotalofapproximately$157,000peryearacrosstheproject.

Theprojecthasalsoresultedinreducedwaterusage. Simplychangingtheshowerheadsin483householdshasresultedinaveragewatersavingof129litresperday,whichequatestoacumulativesavingof38,537kL/yearvaluedataround$35,000. Combinedthewaterandenergysavingsprovideaprojectwitha4yearpayback.

Infollow-upsurveys,participatinghouseholdsprovidedoverwhelminglypositivefeedback.Overalltherehasbeenareductioninenergypoverty,includingwarmerhomesandimprovedhealthofoccupants. Tenantshavebeenimplementingtheadvicethathasbeenrecommendedandhavelinkedthistotheirreducedenergybills.

Recommendations

Learninglessonsfrompreviousprogramswillassistinbetterprogramdesign. FromSLT’sexperienceindeliveringenergyefficiencyservicestomorethan4,000householdstargetinglow-incomeTasmaniansinthepast3years,werecommendthatresidentialenergyefficiencyprogramsbe:

•Eligibilitycriteriasimpleandopen:Narroweligibilitycriteriahampersrecruitmentanddeliveryofprogramsandisoftenunfair;

•Multi-year:Programswithshorttimeframescreateworkforceandprojectdesignissues. Amulti-yearprogramimproveseconomicefficiencybyreducingprogramdesignandsetupcosts.Importantly,italsoallowstheskillsoftheworkforcetobeconsolidatedandimprovedratherthanarushedroll-outprocess.

•Focusonlow-costinterventionsandeducation: Lowcostinterventionsarethe“lowhangingfruit”thatgivethegreatestreturnoninvestment.Acombinationofphysicalupgradesaswellaseducationisthebestofbothworlds;

•Flexibility:Everyhomeandsituationisdifferent. Aprogramneedstohavetheflexibilitytoadaptdeliverablestothehomeandoccupantratherthana“1sizedfitsall”package;

•Noneedtoreinventthewheel:Thereareexistingskilledauditorsandassessors,projectmanagementstaffandsoftwaretodelivereffectiveandefficientprograms;

•Exemptthermostatadjustmentofelectrichotwatercylindersfromrequiringanelectrician’sorplumber’slicense.Thissimpleprocedurecansaveasignificantamountofenergy.Itcanbesafelycarriedoutwithadequatetraining;howeveritiscurrentlyconsidered“PrescribedWorks”byWorkplaceStandardsandthereforecanonlybeperformedbylicensedelectriciansorplumbers,whichmakesituneconomicaltoperform;

•Insulationanddraught-proofingarethemostcosteffectiveactionstoimprovethermalperformance;

•Resistiveelectricheatersshouldbeavoidedinfavourofheatpumps(approximatelyfourtimesmoreefficient)byallgovernmentagencies;

•Energysavingsofaround10%oftheaveragebillareachievableattheprogramlevel. Thisequatestoprogramswitharound3.5yearsimplepayback,and

•SLTregularlyreceivesrequestsforservicesthatcannotbeservicedbyexistingprograms.

SLTbelievesthatabilitiestochangeenergyefficiencyaredifferentineachsegmentofthecommunity.Programsneedtobedesignedtounderstandthestrengthsandweaknessofthetargetgroup.Forexample:

•Forlowincomehouseholds,informationgapsarepresent,butmoreoftenthannotthesearetrumpedbyotherconsiderations,inparticularsplitincentivesandaccesstocapital,and

•Forsmallbusinesses,timelimitationshaveresultedinthemajorityoffailuresofenergyefficiencyuptake. Programsinthisareaneedtoaddresstimeavailabilityiftheyaretobesuccessful.Programsshouldnotrelyoneducatingbusinesspeopletomaketheirownenergyefficiencyassessmentsanddecisions.Whilethatapproachcanbeoptimalforsometechnicalbusinesses(e.g.manufacturingandprocessing),forthemajorityofbusinessesitistime-confusingandtoofaroutsidethebusinesses’coreskillset.Mostbusinessesarebestoffoutsourcingenergyefficiencyserviceswhilegettingonwiththeircorebusiness,andanygovernmentenergyefficiencyprogramshouldreflectthat.

EnvironmentalupgradeAgreements

Environmentalupgradeagreementsdoofferamechanismtoremovethesplitincentivesinmultioccupantbusinesspremises. SLTunderstandsthattheuptakeoftheseagreementshasbeenslowandthecontractualagreementscanbyoverlycomplicated. AsensibleapproachmaybetodiscussopportunitieswiththeownersofbusinesspremisesinthemajorTasmaniancitiesaswellasdevelopbestpracticelegalframeworks.

4.1.7Competitionandefficientuseoftransportfuels

Eco-driving

Theefficientuseoftransportfuelsincludingsafeandefficientdrivingtechniquesincludesthedrivingskillknownas“EcoDriving”. Focusingonvehiclemaintenance,tripplanning,smoothdrivingandothertips;fuelefficiencysavingsofover20%areachievable. SLThasdeliveredtrainingwithKentishCouncilthathasresultedina10%fuelsavinginthecouncilfleet. Programssuchasthiscanbecosteffectiveforfleetswerecommendthatthistrainingbefurtheradopted. AshortvideoonthetechniquecanbefoundontheSLTYouTubeChannel.

ElectrificationofVehicles

Wenotethatthestrategyhasrecognisedthevulnerabilityofthestatetotransportfuelrisesandthepotentialforvehicleelectrification. SLTbelievesthereismuchmoreopportunityherethanbrieflyoutlinedandwouldliketoseegreaterworkconductedinthisarea.

All-electricvehicleshavebeencommerciallyavailableforsometime,andanumberarealreadyonTasmanianroads,includingintheUniversityofTasmaniafleet.Peoplewon’tpurchaseall-electricvehiclesuntilthereissufficientcharginginfrastructure,butbusinesseswon’tbuildcharginginfrastructureuntilthereissufficientmarkettoensureareturnoninvestment.InAustralia,Tasmaniaisinauniquepositionduetotherelativelyshortdistancesbetweenpopulationcentres,meaningfewerchargingstationsarerequiredtoachievegoodcoverage.Withtherightmixofstakeholders,SLTbelievesatourism-ledventurecankick-startthevehicleelectrificationinTasmania.

Weenvisage“theGreatAustralianRenewableRoadTrip”–electricvehiclefast-rechargestationsstrategicallylocatedattourismdestinationsthroughoutTasmania.ThiscouldbeamarketablepointofdifferencethatworksonTasmania’sclean,greenimage.Tourismoperatorswouldbenefitbyhavingacaptiveaudience(fastcharginggives80%chargein30minutesfortheNissanLeaf).Itcouldalsobreathenewlifeintotownsthathavesufferedsincebeingbypassedbyhighways.Apartnershipinvolvingtouristoperators,hirecompaniesandtourismagencieswouldberequiredtodevelopandpromotethisidea. SLTisinterestedinpursuingthisopportunityinliaisonwithotherpartners.

4.1.9Actions

Aselaboratedonthroughoutthisdocument,SLTendorsestherecommendedActions:11,12,13,14,15,20,30,

32,36,40,41,42,43,44,45 and46.

4.3.1Retainingexistingbusinessandattractingnewload

Thisrelatestoclause4.1.7,theelectrificationofthevehiclefleetcouldreplacetheloadfromthelossofalargeindustrialcustomer. Financiallythiscouldhaveseveralbenefits:

a) havingindividualresidentialcustomerspayinghighertariffsthanindustrialcustomerswouldresultinhigherGovernmentIncomes;

b) Electricvehiclesarecheapertooperatethanpetrol,thereforeahigherproportionofmoneywillbeavailabletoTasmanianconsumers. MoreoverthemoneyspentonfuelswillremaininTasmaniaratherthanleavingthestateandnation(currentlyover$1Bperannum)

4.2.2CostReflectivePricing

SLTdoesnotsupportincreasingthe“fixedcharges”proportionofelectricitybill. Increasingthefixedchargesproportionofthebillreducespricingimpactsonenergyconsumption,ineffectworkingagainstenergyefficiencyinitiatives.Itsendsapricesignaltoconsumemoreenergy,whichisriskyinaworldthatisheadingintheotherdirection.Whenapriceoncarbonisreinstated,Tasmaniawouldneedtoreadjustoncemore.

Perhapsofgreaterconcern,increasingfixedchargeswouldeventuateinmorepeoplegoingoff-gridandincreasingfixedcostsforremainingenergyusers,therebyexacerbatingthe“deathspiral”.

4.3.2RenewableEnergy

SLTwouldliketoseeTasmaniaas100%renewableinitsenergyuseforstationaryandtransportenergy.Tasmaniaiswellplacedtoachievethis. SLTalsobelievesthattheglobalenergytrajectoryisheadingtowardsdistributedrenewableenergyandstoragesystems. TheTasmanianGovernmentneedstoprepareforthistoensurethatitsenergyinfrastructureassetsremainviableandrelevant. DistributedgenerationandTasmania’shydroresourcescouldbecombinedtocreateastrong,resilientenergysystemthatwouldbetheenvyoftheworld.

SLTsupportsthefollowingrecommendationsalsosuggestedbytheTasmanianRenewableEnergyAlliance

•ThegovernmentshouldinstructTasNetworksthatimprovingvoltageregulationinthedistributionnetworkisaprioritywherehighvoltagesareleadingtodisconnectionsforsolarPVcustomers.Ensuringthatthedistributionnetworkoperatesatclosertothetargetvoltagewouldfacilitatetheintegrationofdistributedgeneration.

•Reviewthemethodologyusedtocalculatethefeed-intariffforsmallembeddedgeneratorssothatitadequatelycompensatessmallgeneratorsforavoidednetworkcostsandotherbenefitsofdistributedgeneration.

•Investigateamechanismtosupportlocationspecificfeed-intariffsinlocationswheretherearenetworkconstraints.

4.3.5SmartNetwork

SLTseesthatasmartnetworkcouldhavebenefitsformanaginggridcapacityconstraints. However,givenconsumerconcernsaboutthesemeterswethinka“customerledtake–up”,wherebyconsumersarenotforcedtohavethemeters,wouldbetheonlywaytosupporttheiruptake. Vulnerablecustomersmayalsobe

disadvantagedbytimeofusetariffsandtheimpactonthesecustomersshouldbeinvestigatedpriortotherolloutoftimeofusetariffs.