The Demand Manager
Edition 3 - March 2008

Welcome to The Demand Manager, a quarterly e-newsletter designed to focus on energy and water demand management. With growing attention on climate change, demand management is fast gaining a reputation 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.

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In This Issue

News Focus: Goodbye NGACs, hello NEECs and Beat the NEEC, Register Your Project Now
Technology Focus: Ozone Laundry Systems
News and Views: Garnaut, Garnaut, Garnaut…
Dates to Watch

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News Focus

Goodbye NGACs, hello NEECs

The NSW Government has announced the development of the NSW Energy Efficiency Trading (NEET) Scheme to commence on 1 January 2009. 

The NEET will build on the energy efficiency outcomes of the current Greenhouse Gas Reduction Scheme (GGAS), thus replacing the NGAC with a new currency - the NSW Energy Efficiency Certificate, or NEEC.

The proposed Scheme will operate in a very similar way to the current Demand Side Abatement (DSA) Rule of the GGAS whereby businesses or individuals undertaking action which saves electricity are eligible to create certificates.  Electricity retailers will be specifically required to pursue energy efficiency measures in households and businesses from the start of next year through the purchase of NEECs.

The remainder of GGAS will continue as it currently operates until it is replaced by the National Emissions Trading Scheme. It is proposed that the existing targets in GGAS will continue until that time.

Speaking at a recent NEET Forum, the Department of Environment and Climate Change’s Deputy Director General, Simon Smith, pointed out that the NEET Scheme was formulated in order to avoid the demise of the current energy efficiency provisions of GGAS, which is due to roll into the NETS in 2010. Energy efficiency is not proposed to be included under the NETS.

The Scheme is intended to overcome barriers to the implementation of energy efficiency – including information barriers, transaction costs, upfront investment costs and split incentives between building owners and tenants. Whilst the proposed NETS will inevitably lead to higher energy prices, therefore greater energy savings potential, the NEET will be implemented as a further measure to foster energy efficiency, including the formation of aggregators who can effectively overcome market barriers to energy efficiency.

Other countries which have energy efficiency market mechanisms similar to the proposed NEETS include the UK, Italy, France, Belgium and some states of the USA including California. The NSW Government states openly that it hopes the NEET will spur the development of a national energy efficiency instrument in conjunction with the Commonwealth and other State and Territory Governments.

While no specific energy efficiency targets have yet been set, a Discussion Paper has been released by the NSW Department of Water and Energy (DWE) and submissions are welcome up until 13 July 2008.

Beat the NEEC, Register Your Project Now

The NEET Scheme is proposed to commence on 1 January 2009 and only energy efficiency activity taking place after that date will be eligible to create the new certificates, unless the project is already accredited under the current GGAS scheme.

Transitional arrangements will see current GGAS Demand Side Abatement (DSA) Accreditations transfer into the new NEET Scheme.  This will allow those projects implemented before 1 January 2009 to continue to create certificates under the new Scheme.

Demand Manager encourages project hosts who have undertaken energy efficiency upgrades in the past, or in the near future (up until 1 January 2009), to become accredited under the existing GGAS Scheme to avoid missing out under the new arrangements.

Demand Manager maintains a number of accreditations that may assist in this regard. Visit the website to find out more.

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Technology Focus

Ozone Laundry Systems

Commercial laundries are typically high users of energy and water in order to clean, sanitise and disinfect linen in a variety of sectors – health care, correctional care, aged care and hospitality to name a few.

Traditionally, laundries rely on four elements to deliver a good wash – heat, agitation, time and chemicals.  Ozone gas is essentially a new piece of the pie which enables reductions in the use of the other four.

Water and chemical savings are achieved through reduced wash times as segments of the wash are deleted from the program (one rinse cycle instead of two, for instance). Energy savings come about through reduced washer activity and lower wash water temperatures. Other savings, such as a reduction in linen wear-and-tear, and laundry labour can also be achieved.

Ozone itself is a naturally forming gas comprised of three oxygen atoms. It is very short lived and quickly breaks down into harmless oxygen, making it much safer than chemical disinfectants. It is said to be over 3,000 times more powerful than bleach and is most effective when it is continuously in contact with linen in the wash process.

There are several different ozone laundry systems on the marketplace and users are encouraged to select a system which best meets their needs. Common areas to look at include:

Safety

Ozone can be dangerous in high concentrations. Health studies have shown that most people can detect about 0.01 parts-per-million (ppm) in air. Exposure to 0.1 to 1 produces headaches, burning eyes, and irritation to the respiratory passages and can be characterised by a very unpleasant smell.

Systems which use very low levels of ozone injected directly into the washing machine are able to minimise any venting of ozone into the workplace, thus eliminating nasty odours or potential health risks.

Flexibility

All ozone laundry systems introduce ozone into the washing machine in an effort to improve the wash quality, but not all ozone laundry systems do it the same way.

Some systems directly inject ozone into the washing machine whilst others inject ozone into the cold-water inlet pipes for the washing machine.

The down-side of having a ‘cold-water’ system is that you are limited to washing in cold water. While this may sound great for hot water savings, it can often result in a very poor wash quality with little flexibility to switch back to warm water. Cold-water systems also have to inject higher volumes of ozone in order to maintain contact between the linen and ozone gas throughout the wash cycle.

‘Direct-injection’ ozone systems inject ozone into the washing machine as and when required, and as such, it is possible to wash in either hot, warm or cold water depending on the wash specifications.

Reliability of Wash Quality

As this new technology starts to take hold, reliability of equipment and the quality of wash it can deliver are of prime importance. This is of particular importance in the health sector where disinfection of the wash is critical.

Some ozone laundry systems often end up fighting a balancing act between turning up the ‘ozone knob’ in order to deliver wash quality and turning down the ‘ozone knob’ in order to prevent OH&S concerns.

Consumers are advised to thoroughly investigate the different technologies in the marketplace in order to select the one that best suits their needs.

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News and Views

Garnaut, Garnaut, Garnaut…

With Professor Ross Garnaut’s draft Climate Change Report hitting the newsstands recently, The Demand Manager thought it might be useful to summarise the Review and the process from here.

The “Garnaut Climate Change Review” was commissioned by Australia's Commonwealth, State and Territory governments to examine the impacts, challenges and opportunities of climate change for Australia – somewhat of an Australian version of the UK’s Stern Report which was released in 2006.

The Draft Report was released on 4 July 2008 and concluded the following impacts based on ‘middle-of-the-road’ predictions:

  • Irrigated agriculture in the Murry-Darling Basin would decline by some 50% by 2050 and by 92% by 2100 due to reduced rainfall.
  • That the impacts of climate change would wipe 4.8% off Australia’s GDP, 5.4% off projected household consumption and 7.8% of real wages by 2100.

Importantly, Professor Garnaut said “climate change impacts would be significantly reduced with strong global mitigation”.

Chief amongst the responses recommended by the report is the establishment of an Australian Emissions Trading Scheme with the following recommendations:

  • As many sectors as possible be included within the Scheme in order to more efficiently share the costs, including the politically charged area of transport. This is somewhat analogous to the GST – the wider the base, the lower the rate.
  • That permits to emit greenhouse gases be auctioned off at full cost with all revenues being returned to households and businesses.
  • It is suggested that 50% of the revenue from auctioning off permits should go to households to offset resulting rises in energy prices. Of the remainder, 30% should go to business and 20% to research and commercialisation of new technologies.

Later this month, the Commonwealth Government will release a Green Paper on the Emissions Trading Scheme taking into consideration the findings of the report. The Green Paper is expected to eventually fade into a White Paper and draft legislation later this year.

More information can be viewed online with the Final Garnaut Report due by 30 September 2008.

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Dates to Watch

Banksia Environmental Foundation Awards
Melbourne Convention and Exhibition Centre
18 July 2008

Does energy efficiency have a future? Life under an ETS
Australian Institute of Energy, Sydney
Technical Meeting with EnergyAustralia
18 August 2008

Local Government Sustainable Development 2008 Conference
September 10-11
Darling Harbour, Sydney

Garnaut Climate Change Review – Final Report  30 September 2008

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The Demand Manager is a quarterly e-newsletter put out by Demand Manager Pty Ltd.To unsubscribe, click here, or to add someone to the list, click here. To contact the Editor, please email editor@demandmanager.com.au.