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The FMAANZ is a collegiate body of manufacturers and suppliers of non-domestic fan equipment. FMAANZ currently has 23 member companies. In 2012 FMAANZ members voted to adopt a voluntary industry performance code detailing energy efficiency performance levels for key categories of non-domestic fans. Further information on the FMAANZ is available at www.fmaanz.com.au.

FMAANZ is pleased to make the following comments on the issues raised in the Energy Saver Incentive: Issues Paper – June 2013.

1. Barriers to the uptake of energy efficiency measures

  • What evidence can you provide that supports the existence of the barriers outlined in the Issues Paper and whether the extent of these barriers has remained constant, increased or diminished over time?

FMAANZ considers that information gaps, access to capital and behavioural, organisational and cultural factors continue to be key reasons underpinning the non-take up of high efficiency fans in retrofit applications. Given that Activity 33 has only just commenced these barriers still exist. FMAANZ further considers that ongoing promotion and extension of the Energy Saver Incentive will be of assistance in addressing these barriers.

  • Under the first and current phases of the scheme, is there evidence from household and business participants on the existence of these barriers?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • What evidence is there to show that the ESI effectively addresses these barriers?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • What evidence can you provide to indicate the extent to which the ESI is complementary to national emissions reduction schemes?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • Is there any further information in relation to this matter that we should consider?

No comment.

2. The Performance of the ESI to date

  • What evidence can you provide to demonstrate the impact of the ESI on energy consumption and retail prices?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • Has the mix of activities included in the scheme been appropriate to maximise energy efficiency uptake?*

FMAANZ welcomed the extension of the ESI to include business activities such as lighting and fans. FMAANZ considers that the ESI should be extended to include additional business activities as highlighted below.

  • Is there evidence you can provide that suggests that there are barriers to the participation of specific groups in the ESI? For example, low-income households, rural consumers and business and non-residential customers?

FMAANZ has found that the start-up of activity 33 has been equally applicable in both rural and urban areas. FMAANZ considers that extension of the ESI to include project based activities would further increase the attractiveness of the scheme to businesses and encourage greater investment in energy saving initiatives.

  • How are the costs and benefits of the scheme distributed between different customers?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • Can you provide evidence of the impact the scheme has had on investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by consumers?

FMAANZ would expect that businesses involved in Activity 33 will have invested in resources to take full advantage of the commercial outcomes. The ESI is complementary to the voluntary industry performance code detailing energy efficiency performance levels for key categories of non-domestic fans, which was adopted by FMAANZ in 2013

Has the scheme created any unintended consequences and what evidence can you provide to support this?

As Activity 33 has only just started, FMAANZ is unable to provide evidence based comment.

  • Is there any further information in relation to the performance of the scheme to date that we should consider?

No comment.

3. Looking forward: the future of the scheme from 1 January 2015

  • Under the scheme to date there has been a very strong uptake of low cost activities. Can you provide information and data on the remaining demand for these activities?

No comment. Fans have only just entered the scheme and at the time of writing the first VEECs are being processed.

  • Can you provide information and data on current or new types of activities that may be taken up once these opportunities are exhausted? What would the energy savings be associated with their uptake?*

Areas that FMAANZ members consider will benefit from similar interventions include:

  • Extension of Activity 33 to "hot" or condenser applications.

    50-60% power savings per condenser can be achieved which would be approximately 105MWh per condenser.
  • Extension of Activity 33 to commercial air-conditioning products.

    65-70% savings can be made of the supply fans and 30-50% savings can be made on the condenser fans.
  • Ventilation of agricultural chicken growing sheds.

    Typically 7-75% power savings can be achieved by moving from traditional technology to EC fan technology (like Activity 33). This would correspond to approx. 90MWh per shed per annum.
  • With scheme costs and technology limitations in mind, if the scheme were to continue what would be an appropriate target for its next phase?

FMAANZ recommends that, with the successful start of Activity 33, the range of eligible activities should be expanded, including the activities in the industries noted above.

  • Is the ESI the most appropriate scheme in which to encourage energy efficiency uptake for large energy users?

FMAANZ considers that the ESI, by promoting information on and uptake of energy efficiency in business and non-residential sectors, is achieving its key objectives of

  • Reducing greenhouse gas (GHG) emissions;
  • Encouraging the efficient use of electricity and gas; and
  • Encouraging investment, employment and technology development in industries that supply goods and services which reduce the use of electricity and gas by consumers

The ESI brings information and opportunity for increased energy efficiency to companies of all sizes especially SMEs.

  • If large energy users are to be excluded from the scheme what would be the appropriate definition of 'large energy users' and how could this be effectively implemented to reduce the red tape burden on both energy retailers and APs?

    No comment.
  • Is there any further information in relation to the continuation of the scheme that we should consider?

    No comment.
  • As outlined above, an outcome of the RIS process may be that the ESI is not continued, either with or without an alternative mechanism in its place. In developing your response on the future of the scheme, we would also like you to consider the following:
    • Do you consider there to be alternatives to the ESI that would achieve the same objectives in a more cost effective or efficient way?
    • What are they and why?

FMAANZ considers the ESI to be a good and well managed scheme which should be continued. FMAANZ strongly supports the role of the ESI in encouraging the efficient use of electricity and gas; and thereby encouraging investment, employment and technology development in industries supplying energy efficient technologies.

  • What issues do you anticipate if the ESI were not to be continued? How should these issues be addressed to ensure the scheme's equitable closure?

FMAANZ considers that closure of the ESI would lead to considerable disquiet in the industrial and commercial markets as Activity 33 has only just begun. The considerable investment by the FMAANZ and its members in setting up guidelines and operation boundaries has now been completed and implementation should continue.

  • Is there any further information that we should consider if the scheme were not continued?

    No comment.

Page last updated: 24/06/20