Industrial Energy Efficiency Data Analysis

Industry metal production

The Industrial Energy Efficiency Data Analysis (IEEDA) project was commissioned by the federal government and state governments through the National Strategy on Energy Efficiency to better understand and inform:

  • The size and value of energy savings that have been identified and reported (from state and federal agency energy efficiency assessment programs and other studies);
  • The impact of current policies and economic drivers on unlocking those savings; and
  • The further factors and policies that might be preventing or incentivising optimal uptake of energy efficiency opportunities.

In 2012, ClimateWorks published the Inputs to the Energy Savings Initiative modelling from the Industrial Energy Efficiency Data Analysis Project and a summary report Industrial Energy Efficiency: summary of key findings from the ESI data analysis project.  ClimateWorks has since conducted further research that builds on this earlier work and investigates the energy efficiency opportunities available to medium to large industrial energy users looking at the possible energy savings, the associated costs and benefits, and the factors influencing the uptake of the identified energy savings.  

Presented as a series, these reports provide detailed sector by sector preliminary results from the IEEDA project. Sectors covered include:

  • Mining 
  • Metals manufacturing
  • Chemicals and energy manufacturing
  • Freight and air transport 
  • Other manufacturing, construction and services 

Across these five sectors, these energy users include 587 companies, and represent nearly 2,000 PJ of energy use, or around 50% of Australia’s total energy consumption in 2010-11.

Key findings across the five sectors examined include:

  • Significant energy savings have been identified across the industrial sector, representing around 11% of total energy use (shown in Figure 1 above).
  • The majority of opportunities offer a payback below 2 years.
  • These energy savings equate to a decrease in annual energy costs of $3.3 billion per year (in 2010 real dollars). Note: the dollar value of these energy savings do not include implementation costs and are based on common energy prices that may differ from actual prices (particularly for industries that use their own product or for those companies that operate under long-term energy contracts).
  • Not all savings identified will be implemented, due to a range of factors that influence business decision-making.
  • Based on company reports, around 40% of the opportunity identified – worth $1.2 billion – is likely to be implemented. The remainder – $2.1 billion – is not expected to be taken up in current business implementation plans. 

A key strength of the IEEDA project is its focus on real world company data rather than theoretical assessments of energy efficiency possibilities: 

  • The primary data source was actual company data – energy savings as reported through state and federal government programs – complemented with analysis by energy consultants for the breakdown by technology and process type and the costs.
  • The factors influencing the uptake of of energy efficiency have been framed as they would be experienced at the site of implementation, based on expert input, and linked to energy savings identified.

The information presented has not yet been extensively verified. As such, the factsheets aim to both provide information on possible opportunities to improve energy efficiency, and to facilitate discussion on the areas of this analysis which would benefit from further refinement (in particular in regards to the breakdown by technology and process type and the costs). This process has begun with the Oil and Gas Extraction factsheet (Mining) and LNG Production factsheet (Chemicals and Energy Manufacturing) being removed from the reports in order to refine the data and analysis.

To provide feedback on the IEEDA project, please contact us.