EEO extended to new developments and expansion projects from 1 July

15 Jul 2013Archived News Climate Change Matters

There is no doubt that significant energy efficiency opportunities are available at design stages of operations.   Based on this understanding, in July 2011 the Australian Government announced it would extend the EEO Program to require the assessment of new developments and expansion projects. 

What are the new requirements?

Following a consultation and trial period, the regulations which trigger the obligation to assess a new development or expansion project came into effect on 1 July 2013.  Under the extension, new developments and expansion projects which are anticipated to exceed an energy use threshold (when operational) will be required to assess the project from the initial design concept through to commercial operation.  The energy use thresholds for participation are set at 0.5 PJ of future energy use for a single new developments/expansion, with lower thresholds for multiple, concurrent projects. 

Corporations already registered for the EEO program must amend Assessment Plans, while those corporations that find themselves triggering participation in EEO for the first time as a result of this extension will obviously be required to register and submit a new Assessment Plan. Assessments are not required to be retrospective (i.e. corporations will not be required to assess any stages of design that have already progressed). Projects at detailed design / equipment procurement stage are likely to only be required to conduct optimisation activities on the operating plant, as part of a “de-bottlenecking” phase. If a company already has systems and processes in place which substantially meet the intent of the assessment framework, the company can seek an exemption.  The mechanism under which exemption will be sought will become clear soon.

Maximise the value of your assessment

Participants familiar with the Assessment Framework of EEO (the Key Elements and Key Requirements) will be interested to note that the framework will be modified for specific application to new developments and expansions.  Energetics has led and contributed to numerous design reviews for energy efficiency with our clients, and are well positioned to assist clients to both understand the new Regulations and Assessment Framework, their impact on your business, and to provide input into your assessments and opportunity evaluation.  Energetics knows that utilising existing design review processes, and modifying where required, will be critical to getting value out of this program. 

Please contact one of Energetics’ experts for further advice. 

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