Energy efficiency in Australia: progress made, but still not treated as “first fuel”
As another year draws to a close, it’s a timely moment to reflect on where Australia stands on energy efficiency — a topic that sits at the very heart of Enginuity Power Solutions’ work and advocacy.
There is progress to acknowledge. But there remains a gap between what we know energy efficiency can deliver and how fully it is being embedded across policy, planning and industry.
Energy efficiency is finally being counted
One of the most encouraging developments over the past year has been the Australian Energy Market Operator’s (AEMO) continued improvement in forecasting and modelling energy efficiency.
In its most recent forecasts, AEMO explicitly quantifies energy efficiency and demand-side measures as part of future energy scenarios. This is significant. For the first time, efficiency is being more consistently treated as a measurable system resource — not just something that happens behind the meter, but something that can defer network investment, reduce peak demand and lower emissions at scale.
This matters because you can’t manage, or value, what you don’t measure. For too long, energy efficiency in Australia has been largely invisible in national energy conversations, despite being the fastest and lowest-cost emissions reduction available.
Proof in practice: what energy efficiency can deliver now
Forecasts and modelling are essential, but outcomes matter more.
Over the past year, Enginuity Power Solutions has delivered commercial and industrial energy efficiency projects that have reduced our clients’ annual carbon emissions by more than 3 million kilograms, while saving over $1.7 million in annual energy costs. These results were achieved without new generation, without complex infrastructure builds, and without compromising productivity.
They are the product of targeted upgrades, smarter system design and a deliberate focus on reducing wasted energy first. In our experience, this is exactly the kind of impact AEMO’s modelling points to. Tangible, scalable and achievable now, not decades in the future.
SMEs: momentum is building, but barriers remain
Another positive signal over the past 12 months has been increased attention on energy efficiency for small and medium-sized enterprises.
Federal energy efficiency grants for SMEs, alongside established state-based schemes, recognise that this sector represents a significant opportunity for near-term emissions reduction and cost savings. Many SMEs are operating with energy-intensive equipment and rising energy bills, but are constrained by time, capital and policy uncertainty.
When programs are clear and stable, uptake follows. Where complexity creeps in, momentum slows. For energy efficiency to scale, incentives must be simple, predictable, and supported by capable delivery partners.
The lingering challenge
Despite better data and targeted incentives, energy efficiency in Australia is still too often treated as secondary to supply-side solutions.
Australia remains more comfortable announcing new generation targets than committing to coordinated efficiency targets. Yet every unit of energy we don’t use reduces the scale, cost and urgency of everything that must follow. From generation, to networks to storage.
Energy efficiency should be the first step, not the afterthought.
Looking ahead
The signals are encouraging. AEMO’s modelling is improving. Business-focused incentives are gaining traction. And the commercial and environmental case for energy efficiency has never been stronger.
At Enginuity, we see every day what’s possible when efficiency is prioritised. The challenge now is ensuring policy, planning and investment catch up with the evidence.
Because wasting energy is no longer an option Australia can afford.
For those who know Enginuity Power Solutions well, our stance won’t come as a surprise. An energy efficiency first approach delivers lasting benefits for policy, the environment and energy costs alike. If this way of thinking aligns with your priorities, get in touch.
