Exhibit 12 - Industry energy savings through energy efficiency by sub-sector Source: ClimateWorks team analysis, derived from Exhibit 11 Typically, these improvements in energy efficiency are captured through improving control systems and processes, reducing duplicated or oversized equipment, upgrading motor systems, decreasing energy losses in boilers and steam distribution systems, waste heat recovery for pre-heating or other uses, and improved building utilities. The value of capturing these energy savings to Greater Geelong is more than $7 million per year through reduced energy bills. Cogeneration (also called combined heat and power or CHP). Cogeneration provides energy savings by creating heat and electricity from the same fuel source. Because natural gas is used, it also produces less greenhouse gas emissions than electricity sourced from the grid. If the cogeneration opportunities identified for Industry were fully implemented by 2020, they could reduce Greater Geelong’s emissions by 237,600 tonnes of CO2e each year. This is expected to come at an average cost of $47 per tonne of emissions reduced ($30 per MWh). The high upfront cost of installing cogeneration plants means that they are often not prioritised ahead of other investments focused on maintaining core business operations. The introduction of a price on carbon would improve the financial attractiveness of cogeneration, as would opportunities to partner with third party investors to on-sell either the energy or heat produced from the cogeneration process. Medium scale solar PV. Solar PV generates electricity onsite by converting solar radiation into direct current electricity via solar panels typically installed on the roof or walls of a building. Although there is no clear definition, for the purposes of this report medium scale
Exhibit 12 - Industry energy savings through energy efficiency by sub-sector Source: ClimateWorks team analysis, derived from Exhibit 11 Typically, these improvements in energy efficiency are captured through improving control systems and processes, reducing duplicated or oversized equipment, upgrading motor systems, decreasing energy losses in boilers and steam distribution systems, waste heat recovery for pre-heating or other uses, and improved building utilities. The value of capturing these energy savings to Greater Geelong is more than $7 million per year through reduced energy bills. Cogeneration (also called combined heat and power or CHP). Cogeneration provides energy savings by creating heat and electricity from the same fuel source. Because natural gas is used, it also produces less greenhouse gas emissions than electricity sourced from the grid. If the cogeneration opportunities identified for Industry were fully implemented by 2020, they could reduce Greater Geelong’s emissions by 237,600 tonnes of CO2e each year. This is expected to come at an average cost of $47 per tonne of emissions reduced ($30 per MWh). The high upfront cost of installing cogeneration plants means that they are often not prioritised ahead of other investments focused on maintaining core business operations. The introduction of a price on carbon would improve the financial attractiveness of cogeneration, as would opportunities to partner with third party investors to on-sell either the energy or heat produced from the cogeneration process. Medium scale solar PV. Solar PV generates electricity onsite by converting solar radiation into direct current electricity via solar panels typically installed on the roof or walls of a building. Although there is no clear definition, for the purposes of this report medium scale
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