Detailed technical and commercial analysis of energy saving activities and assessment of harmonisation with interstate schemes.

Client: Government of South Australia

The challenge

After 5 years of operation, the Government of South Australia wanted to review all existing and proposed energy saving activities being offered to households under the Residential Energy Efficiency Scheme (REES). REES is an initiative that requires larger energy providers to help households to save energy through activities.

The government also wanted to assess the suitability of activities offered under similar interstate schemes in Victoria, NSW and ACT, for implementation in South Australia and to increase harmonisation between the schemes.

Our approach

Working with two partner consultants – Beletich and Associates and Energy Efficient Strategies – this project involved technical and commercial analysis of a large number of residential energy efficiency activities approved or pending under REES.

Common Capital has significant experience in the development, operational delivery, review, and strategic direction setting for energy efficiency schemes. The review needs drew on broad knowledge, expertise, market and technical data across appliances efficiency, building fabric, household behaviour, AccuRate modelling, product sales, product and installation quality and safety standards, in addition to energy saving measurement and prediction. It also required knowledge of the factors that drive and deter commercial activity in market-based energy efficiency schemes like REES.

Increasing harmonisation with interstate schemes was particularly challenging given both the NSW and Victorian schemes were under review and there were Australian Government iniatives including the Emission Reduction Fund White Paper release that were also likely to impact on both the REES and interstate schemes. Conducting this review in the context of these challenges required excellent knowledge of all these schemes, reform programs, and broader policy contexts

For the review we developed assessment criteria on the strategic alignment, appropriateness, effectiveness and administrative efficiency of regulatory methods. We then benchmarked these against a review of comparable measures in the NSW, Victorian and ACT schemes.

Methods were assessed against detailed quantitative analysis of market stocks, flows and energy performance of end-use appliances and equipment. This included developing an approach to incorporate the Aggregated Metered Baseline Method and Project Impact Assessment Method into the dual fuel framework of REES.

The outcome

We drafted detailed regulations which were publicly consulted on, then enacted and implemented in South Australia.