Welcome to The Demand Manager, a new quarterly e-newsletter designed to focus on demand management. With a growing focus on climate change, demand management is fast gaining currency as the cheapest, quickest and most effective way to cut greenhouse gas emissions.

Each edition will look at issues affecting the industry, examples of innovative projects and other news and views and we welcome your feedback and suggestions.

In This Issue

News Focus: Is the GHG Laden Sky Falling Down?
Project Focus: Returning Power to the Powerhouse
Technology Focus: Funding Aid for Power Factor Correction
News and Views: Demand Manager Pty Ltd – Small Business Champion Awards Finalist
Dates to Watch

News Focus

Is the GHG Laden Sky Falling Down?

When the price of NSW Greenhouse Abatement Certificates (NGACs) fell from a high of $14 in early 2007 to languish below $6 in October, The Demand Manager set out to explore what was really happening.

According to media reports, the blame for the fall in the price of carbon has been placed variously on the Federal Government; the NSW Government; NSW electricity retailers and/or the Scheme Administrator, IPART.

Analysis of the Scheme’s performance to date, however, shows that the proliferation of light-bulb and showerhead hand-out programs has created a glut of carbon credits leading to the dramatic price reductions.

In summary, the facts show 7.4 million more NGACs were created than were required to meet the Scheme’s target in 2007. Leading the growth spurt in 2006 were light-bulb and showerhead hand-out programs run by companies like Easy Being Green and Fieldforce. These projects grew explosively in 2006, rising from less than 1 million NGACs in 2005 to over 8.3 million NGACs in 2006.

The figures also raise questions about the effectiveness of these ‘hand-out’ style programs. Figures from the Scheme Administrator show that some 18 million compact fluorescent bulbs and 2 million AAA-rated showerheads were distributed in 2006 – raising the very real possibility that the market for these technologies has been saturated. There is only a finite supply of light-sockets and showers in NSW that can be retro-fitted, yet the likes of Easy Being Green are claiming there is much work to be done.

The full analysis of the figures can be found on the website, here.

Project Focus

Returning Power to the Powerhouse

The old Ultimo Power Station.

Returning Power to the Powerhouse is an exciting new project involving the Powerhouse Museum and the Council of the City of Sydney with an aim to reduce greenhouse gas emissions by returning the Museum to a functioning power station. The Powerhouse Museum resides in the shell of the former Ultimo Power Station which was built in 1899 to supply electricity to Sydney’s new electric tram system. When the last tram stopped in 1961, the power station was mothballed and the building stood derelict until 1979 when the NSW Premier, Neville Wran, announced it would house the Powerhouse Museum. Today, the Powerhouse Museum is Australia’s largest and most popular museum, hosting some 621,000 visitors every year. The adjacent Ian Thorpe Aquatic Centre was recently opened by the City of Sydney and will also be a focus of community activity. It is proposed to install a cogeneration system at the Museum which will deliver electricity to the Museum and waste heat to the Aquatic Centre for water and space heating. A $461,000 grant from the NSW Government’s Climate Change Fund will help ensure the project meets economic hurdles and also deliver significant educational programs for visitors to the Museum. Tenders for delivery of the cogeneration system through an Energy Performance Contract are expected to be called shortly.

Technology Focus

Funding Aid for Power Factor Correction

Many would at some stage have heard analogies of power factor correction involving kids being pushed on swings or water flowing through pipes in an attempt to describe the intricacies of power vector analysis. Luckily, funding is now available to help consumers implement this energy efficient technology.

In NSW, rebates are available in Integral Energy’s area of operations courtesy of the Power Factor Program which received funding assistance from the NSW Government’s Climate Change Fund. The rebates generally amount to an average 25% discount on the purchase price of the equipment.

Throughout NSW and the ACT, power factor correction installations are also able to create NSW Greenhouse Abatement Certificates (NGACs) representing the energy saved in distribution line losses. The Scheme sets a default saving of 0.06MWh per annum per kVAr of installed capacity. A 600kVAr power factor unit, for instance, could realise extra value worth around $1,500.

For more information on the Power Factor Program and NGACs from PFC, visit the Program website by clicking here.

News and Views

Demand Manager Pty Ltd – Small Business Champion Awards Finalist

Specialist energy and water service provider, Demand Manager, was recently a finalist at the NSW Small Business Champion Awards in the New Business Category. Demand Manager was formed to help deliver energy and water demand management within the NSW commercial and industrial sectors. The award recognises excellence in business practice, product design and business growth. The gala award evening was held at the Westin Hotel on 13 October 2007 with the Hon Fran Bailey MP as Patron of the Awards. The Demand Manager congratulates all the winners and finalists.

Dates to Watch

20th November 2007 – Clean Energy Council – Energy Efficiency and Demand Management Conference. RACV Club, Melbourne. more...

21st and 22nd November – Banksia Environmental Foundation – Banksia Forum. Sydney Convention and Exhibition Centre, Darling Harbour. more...

24th November 2007 – Australian Federal Election.