Energy efficiency

Cheap and abundant coal-fired electricity and a relatively mild climate have made Victoria highly inefficient in the way we use energy. 

Enormous greenhouse gas emission reductions can be achieved through improved energy efficiency, with additional benefits for households and businesses through reduced energy consumption. The greatest gains are to be made through improvements to our existing and future building stock.

However, energy efficient buildings will be ineffective if they are full of inefficient, energy-hungry appliances.  The most inefficient appliances must be phased out through constantly increasing mandatory performance standards, while innovative new technologies should be encouraged by rewarding high efficiency appliances. 

See our full policy statement on energy efficiency.

Mandatory Disclosure requires all large (over 2,000 sq metres) building-owners and lease-holders to undertake and publically disclose an energy rating of their building. It will allow more choice and greater transparency for tenants and buyers. They will be equipped to make better comparisons about a buildings energy performance.

It is an initiative to overhaul the way our businesses and offices will be built, showing consideration for integrating energy-saving techniques into the future of building design. Effective from November 2010, the measure affects lease-holders and owners of large commercial office spaces. This promises positive outcomes for both the built environment and the community.

What mandatory disclosure will mean

All building owners and lessors must undertake an energy rating assessment whenever their building is sold or let, or when a major refurbishment is undertaken.

The energy rating is determined by a National Australian Built Environment Rating System (NABERS). They will assess buildings on set criteria such as lighting, proposed energy-efficiency and construction plans. A star rating will then be assigned to the building along with a 12 month certificate, which will be publically shared on an online registry.

What the outcomes will be

The building sector is responsible for creating one-third of Australia's total carbon footprint. Early research suggests Mandatory Disclosure has the potential to reduce CO2 emissions by 60 mega tonnes, by as early as 2030. This will allow the sector to advance towards better energy performing buildings and evaluate energy efficiency investments, both of which will create a more-informed market.

For more information download our fact sheet.

A smart meter is a device used to measure and record information on domestic energy consumption throughout the day. They are being installed across Victoria over a five-year rollout, expected to be complete by 2013.

Why do we need one and what do they do?

smart_meterSmart meters work by recording and measuring the amount of energy being used, at 30-minute intervals. This information is then made available to the householder, but also to the energy company. The energy company will use the information to detect outages, measure peak times, assess demand and make comparisons of energy usage in your neighbourhood.

In theory, having a smart meter means your power bills may change. The smart meter will tell your electricity supplier exactly how much energy you have used, and allow them to charge based upon this. It also means the supplier can introduce new types of electricity rates, including 'time of use pricing.'

This will allow energy retailers to charge higher rates for energy used during peak times, such as mealtimes or a hot summer day, and less at times of low demand, such as night time.

This website provides an interactive list of Victoria's most sustainable buildings.

Some examples:

  • The Metropolitan Fire Brigade building in Richmond collects 100% stormwater to use for fire drills, has 750,000 litre underground water storage tanks and uses completely water-free urinals.
  • The new RSPCA building in Burwood is integrating sustainable design features to achieve ventilation and air temperature changes to provide constant comfort for the dogs kept there.
  • Other buildings featured on the site include the East Melbourne Library, NAB headquarters, St Kilda Eco house and Westwyck in Brunswick.

Sustainable Buildings provides updates on what is happening in green design and acts as a one-stop shop for anyone interested in the field of ecologically sustainable design.

Visit the Sustainable Buildings Victoria website.

Cheap and abundant coal-fired electricity and a relatively mild climate have made Victoria highly inefficient in the way we use energy.  Enormous greenhouse gas emission reductions can be achieved through improved energy efficiency, with additional benefits for households and businesses through reduced energy consumption at a time of rising energy prices.  However, the pace of change to date has been slow.

The greatest gains are to be made through improvements to our existing and future building stock.  Only a clear, well-designed and long-term policy framework will provide the certainty that will drive the development of an energy efficiency industry and provide households and businesses with sufficient incentive to invest in energy efficiency improvements to buildings.

However, energy efficient buildings will be ineffective if they are full of inefficient, energy-hungry appliances.  The most inefficient appliances must be phased out through constantly increasing mandatory performance standards, while innovative new technologies should be encouraged by rewarding high efficiency appliances.  Cost barriers to upgrades, particularly in the residential sector, must be addressed through adequate financial assistance for people considering replacing old appliances with more efficient ones, and measures to overcome split incentives, particularly for the rental sector.

While many energy efficiency measures are ‘win-win’ because they reduce emissions and lower costs for consumers, many people are confused about the costs and benefits.  We need a skilled and well-regulated energy efficiency industry to help make energy efficiency decisions hassle-free, complemented by user-friendly and accessible public information provided by independent organisations.