Pivot – Rebound – Transform: A practical plan for rapidly transforming the energy management market that supports Australian industry:
Australia’s energy system is decentralising and transitioning away from fossil fuels. At the same time, we’ve seen rapid advances in digital technologies that enable businesses to manage their energy use in real time. These dual trends open up an opportunity for businesses – especially energy intensive businesses – to utilise smart energy management to bring down energy costs. It also enables businesses to play a more proactive role in the energy system; improved energy efficiency and practices like demand management, demand response and on-site generation can actively support the reliability of our electricity system.
There are big benefits through more competitive businesses and a more stable, cheaper electricity system if these trends accelerate over the next decade. However, there is also a steep learning curve for businesses that take a leadership position in energy management. Demonstrating and deploying smart energy management technologies and solutions in industry sectors where they are uncommon or non-existent can have significant risk and cost. Supply chains for these technologies and solutions tend to be underdeveloped, and the expertise of local advisors and service providers can be low.
Overcoming these barriers will require nothing short of transformation in the market for energy management product and services. Energy intensive businesses need to be supported as they take a lead in rolling out new technologies and practices. At the same time, the energy management market of products and services that supports Australian industry needs to rapidly increase in size and sophistication. Simultaneously pursuing these goals will allow discrete, interrelated ‘enabling ecosystems’ of expertise, products and services to be developed around key sectors of the Australian economy. While this is a big goal, it is the right one, as it will ensure that Australian business can adapt and thrive as our energy system continues to transition.
Our organisations supported the production of this report by an independent group of experts as a way of progressing this crucial debate. The report’s recommendations are substantive and, in some cases, original. We will be considering them carefully as we review our own policy positions and suggest governments – state and federal – do the same.
Together, industry and government can overcome the immediate challenges facing the Australian economy, put Australia’s energy management market on a pathway to transformation, and ensure our industries thrive for decades to come.
