Many major organisations in Australia require large amounts of energy to operate. Those involved in power generation, smelting and manufacturing consume the most energy. Substantial opportunities exist for organisations to reduce the expenditure on energy through the introduction of energy efficiency improvement programs.
Many major organisations in Australia require large amounts of energy to operate. Those involved in power generation, smelting and manufacturing consume the most energy. Substantial opportunities exist for organisations to reduce the expenditure on energy through the introduction of energy efficiency improvement programs.
Because the price of energy has been relatively low in Australia, it has been difficult to justify investing in energy efficiency projects. However, the 2008 spike in crude oil prices was a salient reminder of our exposure to higher energy costs. In addition, the imminent introduction of a price on carbon will result in higher electricity prices. Recent droughts around Australia also caused spikes in the wholesale price of electricity and water.
Many of the technologies used to increase energy efficiency improvements are generally available and represent a low risk of failure. Often, substantial savings are achievable through a change in business practice – resulting is short payback periods.
In addition, there are considerable opportunities to reduce the energy consumption of commercial buildings in Australia. The Federal Government has mandated that all Commonwealth Government tenants only renew leases in buildings that have a high energy efficiency rating.
For organisations that are exposed to increasing energy costs and need to reduce their emissions, increasing energy efficiency can increase bottom-line profits through cost savings, whilst reducing the carbon footprint of the business. This presents a real opportunity for Boards to encourage organisations to more closely evaluate opportunities available in this important area.