English language version of the presentation given by Jonathan Jutsen, Chairman of the Australian Alliance for Energy Productivity in San Luis Argentina in December 2016

1. Argentina
December 2016
Energy Productivity and Climate
Change
Jonathan.jutsen@a2se.org.au
+61 418510109
www.2xEP.org.au and www.a2ep.org.au
See my Linkedin page for regular blog and newsletter
Jonathan Jutsen
Chair of

2. Would you be surprised to know that
Of all the energy we dig up or collect
only 12%
is effectively used to deliver end services.
88% is wasted

3. • EP is value produced by using a unit of energy. $value added/GJ
• Achieved by both increasing value AND decreasing energy use
• Aim to improve overall productivity using an energy focus for:
• Improved business competitiveness and jobs
• Improved affordability for consumers
• Reduced C emissions.
2xEP= Double energy productivity by 2030 (2010 base)

4. Elements of EP
Driving increased total value
using an energy lens
Integrates energy into core
portfolios

5. Why we must improve
energy competitiveness
$8.44
$7.22
1.7%
1.1%
-1%
0%
1%
2%
3%
4%
0
2
4
6
8
10
12
14
Averageannualgrowthinenergyproductivity
1995-2012
GDPperunitofprimaryenergyuse
(constant2011PPPperkgoilequivalent)
Bars indicate latest available EP (2011 or 2012) Annual EP improvement since 1995

6. 2xEP addresses 3 major issues simultaneously
Direct energy cost savings (and >2.5 times that in total
productivity benefits). In Argentina, reduces cost of energy
subsidies.
Reduces oil imports and improves energy security
Reduces C emissions while increasing GDP
Oil supply/security
Carbon emissions
$ Savings

7. • Not for profit company with Board of business leaders.
Leading collaboration to make Australian a more productive and sustainable country
• Key role to drive change through policy + fact based communication
Annual Summer Study.
• Support 2xEP business coalition
2xEP has umbrella steering committee
30 business and energy industry associations/leaders.
• Sister organisation with US Alliance to Save Energy
• Connected with energy savings organisations internationally
• Member Global Alliance for Energy Productivity
Australian Alliance for Energy Productivity

8. 2xEP Working Groups
• Manufacturing (includes 2xEP Challenge)
• Mining
• Agriculture
• Passenger transport
• Freight transport
• Built environment
 Innovation
 Financing and investment
 Metrics, measurement and reporting
 Communications and advocacy

9. The importance of a bi-partisan, long term policy
EP is something all political parties agree about!
We had divisive debate about climate change policy which continues,
(though government set 26% reduction target from 2005 levels).
And we had many reversals on energy and carbon policy, which undermined
business confidence and confused the public.
But, all parties AGREE to the need for action on EP.
• Liberal (current government with one seat majority):
40% EP improvement target from 2015
National Energy Productivity Plan (NEPP).
• Labor and Green Parties: 2xEP was element of election platform.

10. And the need for Integrated Energy/Climate policy
• Energy productivity and renewable energy are the dynamic duo for a long
term competitive and sustainable economy.
• They need to be pursued in tandem as:
• Energy efficiency reduces consumption which makes room for higher priced renewables
without increasing bills.
• EP including demand management and storage are critical for grid stability in a grid with
high renewables penetration.
• Australian government has integrated energy and environment departments
• Germany and SA both having challenges from moving
renewables out too far ahead of energy efficiency.

11. ARENA
• Government agency with mandate to increase renewable energy and
promote innovation.
• Expanding mandate now to include energy efficiency/productivity
• Grant program for R&D and technology transfer
• Funded large scale solar round recently - $90M grant = $1B private
sector investment, 500MW

12. California and ACT did it well
Energy/person = half rest of US
Integrated approach supports deep penetration of renewables

13. Can Australia achieve 2xEP by 2030?
• Climateworks modelling showed it is feasible using existing technology
• A2EP sector roadmaps show that some sectors – mining in particular – will
not be able to achieve 2xEP without major technological change.
• Our innovation roadmap demonstrates that we can achieve 2xEP or more
by using available and emerging technologies and business models
• Australia has an economic imperative to achieve >2xEP and it is the only
way we can achieve our climate targets and enhance the economy

14. There is a strong economic justification for 2xEP
to address falling energy competitiveness
Where does Argentina fit?
Improvement in energy productivity
Relative energy price increases
Germany
Australia*
* Note that Australia had more rapid EP Improvement 2013-2015 but still behind OECD average
UK
USA

15. And EP is a moving target!
Double energy productivity by 2030
27% reduction in energy intensity by 2030. Likely to be increased this
year to 30-40% reduction.
UN Sustainable Energy for All: Double the rate of EE improvement by
2030 (to 2.5% p.a.)
• Paris accord commits to <2OC increase - drive accelerated investment in EP
• IEA confirms EE as the priority for C mitigation
• Germany commits to $US20B EE program to have total energy use by 2050

16. Benefits from doubling EP
- Australian numbers $100 billion
investment
opportunity
Increased
affordability for
consumers

17. • Plan agreed December 2015.
• Target set as 40% improvement on 2015 levels
by 2030.
• (This is about half the 2xEP target of doubling EP
from 2010 base by 2030
COAG Energy Council committed to a coordinated
NATIONAL ENERGY PRODUCTIVITY PLAN (NEPP)

18. EP Innovation is critical to 2xEP/meeting climate targets
and strengthening the economy
• Consider how fast technology change is occurring:
– 14 years to 2030 is a long time
• 14 years ago: 1M internet users, no commercial electric cars.
• 2002 was last year film camera sales exceeded digital
• CFL lamps not on market: now being made redundant by LEDs.
• There are game changing EP innovations creating
completely new ways to deliver energy services e.g. Uber.

19. EP Learning Curve: Global LED light price, 2010-20
Ref Bloomberg
GLOBAL LED SELLING PRICE DATA AND PROJECTIONS ESTIMATES OF FIXED/VARIABLE PRICE ELEMENTS OF LED LIGHT
0
10
20
30
40
50
60
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
fixed element
projection
60W
equivalent
projection
40W
equivalent
projection
60W
equivalent
prices
40W
equivalent
prices
1
10
100
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
fixed
element
37% per year
decrease
variable
element per
1,000 lumen
7% per year
decrease
$ $

20. Plate to farm value chain overview

21. Farm to plate value chain: key systems for EP improvement
• Extension of shelf life by preservation/refrigeration
• Dewatering/drying
• Process heat/cooking
• Utilisation of co-products and waste
Farm
13%
Processing
18%
Transport bulk
8%
Wholesale & Storage
10%
Transport to retail
3%
Retail
11%
Food prep’n -
commercial
14%
Transport -
private/delivery
3%
Food prep’n - home
15%
Waste management
5%
Indicative breakdown of primary energy use in 'farm-to-
nutrition value chain

22. Farm to plate: examples of high potential innovations
IOT (real time on-line temperature tracking) and cloud applications to optimise the cold supply chain, benchmark, identify equipment faults
Precision farming (with GIS and other data, virtual paddocks, etc.
High efficiency, low GWP refrigerant refrigeration e.g. cascaded, modular
High temperature heat pumps to upgrade (recovered) heat and produce process heat/steam
High efficiency commercial cooking and food display systems e.g. effectively insulated cookware and ovens, automated lids on fryers and grillers,
commercial induction cooking, Pulsed Electric Field cooking, smart management of exhaust fans
Dewatering to reduce energy lost evaporating water and downstream use for transport and processing e.g. partial dewatering of milk on farm,
membrane filtration, centrifuges, ambient air, microwave etc.
Optimised anaerobic co-digestion of wastes from multiple sources for biogas production
Super high efficiency insulation materials e.g. aerogels, evacuated panels, high performance foams
Reduce food waste using IOT e.g. phone applications to assist consumers, cold chain tracking etc
Sterilisation and extension of shelf life using advanced packaging and high efficiency electric technologies e.g. high pressure processing, Pulsed
Electric Fields, irradiation, sterile conditions pasteurising with high efficiency heat recovery

23. How to Drive Change
• Combination of carrot, stick, capacity building, recognition
– Incentives for market transformation
– Regulation of minimum performance standards
– Education, training, support
– continuous improvement culture and systems
- graduate placement
– Public recognition
– Inform – actively (not on web sites)
– Technology transfer and RD&D incentives