The 2xEP Roadmap is a project of the Australian Alliance for Energy Productivity (A2EP). A2EP is an independent, not-for-profit coalition of business, government and environmental leaders promoting energy efficiency, energy productivity and decentralised energy. A2EP aims to inform, influence and advance the effective use of energy in Australia.
The 2xEP program is working with industry, governments and research partners towards a Roadmap for doubling energy productivity by 2030. A commitment to 2xEP would lead to investment of $100 billion over 15 years, a 2.8% increase in real GDP, a $30 billion reduction in energy spend in 2030, a 25% reduction in greenhouse gas emissions.
Economic productivity in many sectors of the Australian economy has been flat or declining in recent years. Energy costs consumers - business and domestic - more than $110 billion per year, about 8% of GDP. Improving energy productivity is key to improving multi-factor productivity.
Energy ‘productivity’ considers not only energy ‘efficiency’ but also system optimisation and business transformation. Energy productivity looks to outputs - quality and quantity - not only to ‘savings’ or a reduction in consumption but also ways to improve the value of output created from energy use.
Australia lags other developed economies in measures of both energy productivity and the rate of improvement. Over the last decade poor energy productivity has combined with sharp price increases to damage our economic competitiveness. Other developed economies with higher levels of energy productivity have set ambitious targets for further improvement.
The 2xEP Roadmap will detail an economy-wide approach along with sector-specific detail. The Roadmap will detail opportunities for energy productivity improvement, hurdles and measures to address those hurdles. The Roadmap will consider available data and gaps in data required to measure and verify change.
The Energy White Paper, finalised in early 2015, sets out the federal government’s national energy strategy. The White Paper establishes energy productivity as one of three priorities. The National Energy Productivity Plan, finalised in late 2015, details the approach developed by the COAG Energy Council. A2EP will work with business and government to ensure that the ambitious but achievable plan is put in place.