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Energy productivity skills and training pathway Final Report
October 2017
A report prepared for the Department of the Environment and Energy by the Energy Efficiency Council
About the Energy Efficiency Council The Energy Efficiency Council is Australia’s peak body for energy efficiency,
cogeneration and demand management.
The Council is a not-for-profit membership association which exists to make sensible,
cost effective energy efficiency measures standard practice across the Australian
economy. We work on behalf of our members to promote stable government policy,
provide clear information to energy users and drive the quality of energy efficiency
products and services.
Formed in 2009, the EEC now represents over 80 members from business and
government that:
provide high quality energy efficiency advice, services and management
manufacture, install or service energy efficiency products or technologies
manufacture, install or manage of cogeneration and trigeneration systems
develop, market or implement demand management systems and services
The EEC is a national organisation with headquarters in Melbourne.
Please use the following reference when quoting this publication:
Energy Efficiency Council (2017) Energy productivity skills and training pathway.
Energy Efficiency Council Melbourne, Australia.
© Energy Efficiency Council 2017
This work is subject to copyright. Apart from any use permitted under the Copyright Act
1968, no part may be reproduced by any process without written permission from the
publisher. Requests and inquiries should be directed to:
Energy Efficiency Council
490 Spencer Street, West Melbourne, 3003
Phone: +61 (03) 8327 8422
Email: [email protected]
Web: www.eec.org.au
Acknowledgements The authors extend their gratitude to the specialist subject matter experts, program
managers, business and industry association representatives, and energy efficiency
service providers who offered us their valuable time and expert and personal insights
to inform the development of this report. Full details of individuals and organisations is
included in the Appendices.
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Executive summary Energy productivity is a measure of the economic value created per unit of energy
used. In its simplest form, it is calculated by dividing total economic output (typically
GDP or revenue) by the amount of energy consumed (e.g., barrels of oil equivalent, or
kilowatt hours of electricity).
Improving energy productivity will boost Australia’s competitiveness, help consumers
manage their energy costs and reduce Australia’s greenhouse gas emissions
(Australian Government, 2015a, pp 6).
Programs that train energy service professionals are essential to improve energy
productivity in all sectors of the economy because the capacity of the energy efficiency
sector to provide the services that will underpin a significant ramp up in energy
productivity relies on having a growing pool of professionals with relevant knowledge
and skills.
The objective of this scoping study is to examine the range of essential skills,
knowledge and experience that specialist energy efficiency professionals require to
provide energy efficiency and energy productivity services, and develop an
improvement pathway for individuals and organisations that reflects their needs.
Increasing the capacity of the energy efficiency sector is essential to provide the
support business and other energy users require to respond to rapidly increasing
energy prices and ramp up energy productivity.
Energy productivity and energy efficiency are terms often used interchangeably, yet
they are different in definition, in measurement and in application. Energy efficiency,
achieving more while using less energy, is a foundational energy productivity strategy.
Other strategies, or determinants, of energy productivity are system optimisation, and
transformation of business models. All three determinants generate organisational and
economic value, both tangible and intangible, and can reduce energy use, therefore
contributing to an energy productivity improvement.
Considering the three determinants as separate processes is a useful means of
defining energy productivity and understand pathways for improvements. Yet service
providers reported significant interplay between the different strategies in practice.
Entities delivering these strategies tend to originate from two different areas – energy
efficiency service providers and management consultants / operational excellence
service providers. Energy efficiency service providers come from a foundation of
technical energy efficiency capability, expanding their service capabilities to deliver the
other strategies. The management consultants / operational excellence firms enter
energy productivity from the other end of the spectrum, with foundational system
optimisation and business transformation capabilities, but generally limited technical
energy efficiency capability.
Numerous studies point to five common competency areas for the successful delivery
of energy efficiency projects, including general cross cutting competencies and specific
energy and other technical competencies. Some of these cross cutting competencies
transfer directly to the execution of system optimisation and business model
transformation.
In other competency areas, deeper knowledge, new skills or more experience is
required. Globally relevant industry sector knowledge and experience, knowledge of
and experience in approaches such as Lean Manufacturing, Six Sigma and
Continuous Improvement, complex financial analysis skills, and knowledge of new
methods of calculating value were considered key.
A team of people is generally needed to deliver against these competencies, including
team members with significant industry specific experience and expertise and a range
of other, primarily business focussed, specialisms. They are drawn from a range of
backgrounds and occupy a wide variety of roles in the delivery of the energy
productivity outcome.
Thus, a wide range of career paths can lead to a specialisation in energy productivity.
Further, no individual will be expert in all aspects of energy productivity, even within a
specific sector of the economy such as manufacturing. This reality underlines the
importance of multi-disciplinary teams in driving an optimal energy productivity
outcome.
In light of this, policymakers, industry bodies, employers and others seeking to boost
energy productivity skills in the economy should avoid prescriptiveness about the
pathway taken by individuals, instead focusing on the destination – identifying and
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supporting the development of the range of competencies necessary to deliver an
energy productivity outcome in target economic sectors. This will ensure that a
growing pool of practitioners are focussed on the delivery of comprehensive, high
value and highly attractive outcomes.
Recommendations are intended to grow the pool of quality service providers and to
ensure they have an attractive business and professional occupation.
Recommendation 1: Establish a cross-jurisdictional forum to co-ordinate
energy productivity capacity building and training development
It is recommended that the Australian Government establish a body that facilitates
cooperation between federal and state governments, industry and the education sector
on energy productivity capacity building.
Recommendation 2: Identify the focus sectors and determine specific skills
needs
It is recommended that the Australian Government invest in work that identifies target
sectors, determines the relevance of each of the energy productivity determinants to
these target sectors, and the availability of skilled professionals to deliver against
those strategies.
Recommendation 3: Establish the knowledge, skills and experience required
to deliver energy productivity outcomes in focus sectors
It is recommended that energy efficiency and productivity service providers, their
customers and relevant industry bodies work together to build on the findings of this
study to fully map the knowledge, skills and experience required to deliver high quality
energy productivity outcomes in target sectors.
Recommendation 4: Undertake a review of learning outcomes of existing
training resources against identified energy productivity competencies in
target sectors
It is recommended that industry bodies and higher education, VET and non-accredited
training providers work together to undertake a comprehensive review of learning
outcomes across the wide variety of learning resources identifying areas for refinement
or gaps.
Recommendation 5: Act to address training gaps
It is recommended that the Australian Government work with state governments,
industry bodies and training providers to coordinate an approach to addressing
identified training gaps.
Recommendation 6: Ensure current and emerging standards and
certifications reflect energy productivity including energy efficiency
It is recommended that a working body of relevant industry associations, standards
making bodies and certification providers is established to oversee the integration of
standardise energy efficiency and energy productivity approaches into current and
emerging standards and certifications.
Recommendation 7: Reward investment in professional development and
certification
It is recommended that all consumers of energy services give preference to those
service providers that demonstrability invest in their staff and have proven their ability
to meet the highest standards of service performance.
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Table of contents
1 About the project .......................................................................................................................................................................................................................................................... 1
2 Building an understanding of energy efficiency and energy productivity ...................................................................................................................................................................... 2
3 Types of services and approach to delivery ................................................................................................................................................................................................................. 6
4 Essential knowledge, skills and experience for energy productivity outcomes ........................................................................................................................................................... 13
5 Energy efficiency and energy productivity training approaches .................................................................................................................................................................................. 18
6 Building the energy productivity services capacity ..................................................................................................................................................................................................... 25
7 References ................................................................................................................................................................................................................................................................. 28
8 Other sources ............................................................................................................................................................................................................................................................. 30
9 Appendices ................................................................................................................................................................................................................................................................. 32
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1 About the project The National Energy Productivity Plan recognises the need to build the capacity of
several sectors, particularly the energy efficiency sector and key trades, to help all
sectors improve their efficiency and achieve the target to improve energy productivity
by 40 per cent by 2030 (Australian Government, 2015b, pp 18).
Better energy productivity will boost Australia’s competitiveness, help consumers
manage their energy costs and reduce Australia’s greenhouse gas emissions.
(Australian Government, 2015a, pp 6)
Energy productivity is about improving total productivity, using an energy lens. The
discipline encapsulates traditional energy efficiency, joining it with methods of system
or process optimisation and transformation of business models (Stadler et al, 2014, pp
10).
The objective of this scoping study is to examine the range of essential skills,
knowledge and experience that specialist energy efficiency professionals require to
provide energy efficiency and energy productivity services, and develop an
improvement pathway for individuals and organisations that reflects their needs.
Developing a better understanding the skills, knowledge and experience needs of
energy productivity professionals also creates the opportunity to build capacity in other
professions, such as traditional business advisors, to provide energy productivity
services and expand the pool of energy productivity professionals.
This study is focussed on identifying the energy efficiency and productivity skills,
knowledge and experience needs that are shared across all business sectors and
does not seek to examine or report on the specific requirements of individual sectors
or industries.
The report's findings are based on the input of energy service providers, energy users
and their representative bodies, training specialists, energy efficiency and energy
productivity program managers in government, and a review of relevant reports and
programs that set out international best practice in this field.
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2 Building an understanding of energy efficiency and energy productivity Energy productivity and energy efficiency are terms often used interchangeably, yet
they are different in definition, in measurement and in application.
This section of the report sets out a definition for energy productivity, highlights the
actors that have a role in improving energy productivity along the energy value chain,
and establishes energy efficiency as a foundational factor of an energy productivity
outcome.
2.1 Defining energy productivity Energy productivity increases the economic value created per unit of energy used (US
Department of Energy, 2015, pp 15). It is calculated by dividing total economic output
(typically GDP, revenue) by the amount of energy consumed (e.g., barrels of oil
equivalent, or kilowatt hours of electricity) (GAEP, 2015, pp 3).
Australia’s National Energy Productivity Plan (NEPP) sets the economy-wide measure
of energy productivity as national gross domestic product (GDP, in millions of dollars)
(the numerator) divided by petajoules (PJ) of primary energy (a measure of the total
energy supplied within the economy) (the denominator) (Figure 1).
Figure 1: Australia’s economy wide energy productivity metric (Australian Government, 2015, pp 9)
However there are a range of numerators and denominators that can measure energy
productivity at a macroeconomic, sector or project level. For example, ClimateWorks
Australia has developed a suite of metrics for assessing the energy productivity of a
company including energy cost resilience, energy productivity outcome and energy
efficiency performance (Figure 2). ClimateWorks determined that a suite of metrics
was necessary, as an uncomplicated assessment of energy productivity at the
company or site level generally relies on either annual revenue or annual production
units, figures that can be substantially impacted by factors outside the influence of an
energy management system.
Figure 2: Examples of company energy productivity metrics, (Climateworks 2015, pp 2)
The NEPP recognises the need for granularity in assessing energy productivity in
different parts of the economy, and includes a commitment to develop a dashboard of
more detailed metrics relevant to different measures and sectors covered by the NEPP
(Australian Government, 2015, pp 9).
Because energy productivity is defined as a ratio, increasing energy productivity can
be achieved by either increasing the economic output numerator or reducing the
energy use denominator. This means that increases in energy productivity can be
realised without a reduction in energy use and associated GHG emissions.
For example, a shift in the economy to a greater proportion of services compared to
industry, or a shift from heavy to lighter industry, may lead to an increase in energy
productivity without an improvement in energy use at the level of individual processes
(Fawkes et al, 2016. Pp 25).
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Given the many benefits of using less energy – including achieving absolute
greenhouse gas emission reductions – it is important not to lose sight of energy
efficiency, that is; providing the same level of goods and services using less energy
(US Department of Energy, 2015, pp 15). Maintaining a clear focus on the critical role
of energy efficiency within the broader energy productivity discussion ensures that
energy consumers are supported to use energy more efficiently and productively,
rather than pursuing only ‘above the line’ economic value improvements.
2.2 Actors in the energy value chain There are opportunities for different actors to increase economic output and reduce
energy use along the entire energy value chain (Figure 3) from upstream exploration
and extraction, through mid-stream processing, transformation, transportation,
transmission and distribution and downstream final energy use.
Individual downstream energy users have limited capacity to influence upstream
issues. However in aggregate actions such as energy efficiency and demand
management can lower or shift generation, transmission and distribution requirements,
which in turn can help avoid the construction of unnecessary energy infrastructure.
Prosumers - energy users who are both producers and consumers of electricity or heat
- can move, at times, to different parts of the energy value chain.
The influence of energy service providers extends along the energy value chain,
depending on the nature of client and engagement.
Figure 3: Energy value chain and main actors (prepared by author, value chain from World Energy Council, 2013, pp 12)
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2.3 The determinants of energy productivity Energy productivity measures are well defined in the literature, yet the actual
determinants of energy productivity – the factors that give rise to energy productivity
outcomes – are far less clear.
The Australian Alliance for Energy Productivity (A2EP), formally the Australian Alliance
to Save Energy (A2SE), has been working for several years to progress an agenda for
doubling Australia’s energy productivity (2xEP) by 2030 from 2010 base. Through their
reports and series of roadmaps, A2EP have established one of the clearest
frameworks for describing the energy productivity discipline.
A2EP recognise three strategies, or determinants, for generating value through energy
productivity – traditional energy efficiency, system optimisation and transformation of
business models (Stadler et al, 2014, pp 10). All three determinants generate
organisational and economic value, both tangible and intangible, and can reduce
energy use, therefore contributing to an energy productivity improvement (Figure 4).
Figure 4: Energy productivity strategies (Stadler et al, 2014, pp 10).
To better illustrate the distinction between the different strategies, examples of the
types of actions that may take place under each strategy type across key sectors are
detailed in Table 1.
Although there are energy productivity opportunities across all sectors within each of
the strategies, the application of strategies may have different priority and prevalence
depending on the nature of the sector. For example, clients in some sectors, such as
commercial buildings, are likely to have a greater appetite for energy efficiency.
Alternatively, production output focussed sectors may take a more balanced approach
that includes both energy efficiency and system optimisation.
2.4 Summary Energy service providers can influence energy productivity outcomes along the energy
value chain. These energy productivity outcomes are driven primarily through three
key strategies – energy efficiency, system optimisation and transformation of business
models.
To maintain focus on reducing absolute energy use and associated greenhouse gas
emissions, energy efficiency should be considered the foundational energy productivity
strategy that others are built on.
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Sector ENERGY EFFICIENCY SYSTEM OPTIMISATION TRANSFORMATION OF BUSINESS MODELS
Mining Ore characterisation and feed preparation
Ventilation
Fuel switching
Hauling/materials movement
Smart blasting
Optimal processing strategy
Whole of site operations
Autonomous mining
Truck-less mines
Real-time big data transformation
Manufacturing Energy efficient plant and equipment
Metering
Reporting
Improved maintenance practices
Lean manufacturing
Process change / optimisation
Capacity optimisation
Waste reduction
Supply chain optimisation
Additive manufacturing
Advanced materials
Process intensification
Freight transport More fuel-efficient vehicles/equipment
Alternative fuels
Improved company practices
Increasing payload capacity or utilisation
Urban planning and site location
Mode shift
Increasing network capacity
Increasing network utilisation
Digital freight matching
Carrier collaboration
Data services
Built environment Energy efficient equipment and passive building design
Distributed generation and storage
Power factor correction
Waste heat recovery
Data and energy management
Advanced building management systems
Transport centric urban design
Shared infrastructure – e.g. District heating, cooling
Precinct scale retrofits to address heat-island effects
Zero emissions buildings and advanced construction materials that reduce the cost / time of construction, whilst improving thermal efficiency
Smart hubs / teleworking
Agriculture Implementation of innovative energy-use technologies and demand-management initiatives, as well as best-practice data management and
benchmarking practices
Energy-related aspects of farm production and distribution infrastructure design, production
processes and the extended value chain
Energy aspects related to design, development and management of agricultural operations, as well as
distribution, marketing and asset management
Table 1: Examples of energy productivity actions within each of the strategies across sectors (EEC analysis from A2EP sector roadmaps)
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3 Types of services and approach to delivery Considering energy efficiency, system optimisation and business model transformation
as separate processes is a useful for defining energy productivity and understanding
pathways for improvements. Yet service providers reported significant interplay
between the different strategies in practice.
This section of the report examines the nature of the firms working to improve the
energy productivity of their clients, and the types of services they provide. These
insights lay the foundation for determining where to focus action to best improve and
expand energy productivity service capacity.
3.1 Energy efficiency service providers There are a wide range of opportunities for energy efficiency service providers along
the value chain such as auditing, integrated energy contracting, installation and
commissioning, financing and energy supply. Often services offerings can span or
bundle up, several service ‘types’ (Figure 5).
The structure of businesses providing energy productivity services is diverse. There is
a cohort of businesses and professionals for whom energy efficiency is a core service
and identity for the enterprise. For others, the energy efficiency service is part of the
enterprise's broader services, perhaps integrated within a product offering or advisory
service, without necessarily being core to their identity (Figure 6).
Figure 5: Examples of energy efficiency services along the value chain (Publication: Leroi et al, 2013, pp 2, EEC analysis)
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Figure 6: Defined and undefined participants in the Energy Efficiency Services Market (EEC produced)
For example, dedicated energy advisory companies like Ecosave, Genesis Now and
Outperformers all offer energy efficiency audit services, and a varying range of other
services such as energy performance contracting, energy efficiency certificate
generation, project delivery and measurement and verification to commercial and
industrial clients.
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A small number of energy advisory firms work almost exclusively with one client,
operating in effect as an in-house advisory team.
BOX 1: Case study: Traditional energy efficiency
Sector Built environment
Project 5 Martin Place, Sydney, Australia
The iconic 5 Martin Place has undergone a significant transformation.
This heritage building is now a 19 storey office building providing
approximately 34,000 sq m of NLA. It integrates the existing 1916
heritage facade on the first 11 floors, and uses a unique cantilevered
structure and double skin north facade on the tower levels to create a
modern office and high end retail space in the Sydney CBD.
Service provider Norman Disney Young
Project NDY provided sustainability consultancy and Green Star management
from design through to project completion, as well as providing energy
modelling, daylight modelling, thermal comfort modelling, air change
effectiveness modelling, and National Construction Code Section J
analysis including JV3 modelling.
Outcomes A combination of active and passive chilled beam space conditioning
and high performance glazing is expected to reduce base building
energy consumption by 60% and water consumption by 58% compared
to a standard building.
The building has achieved a 5 Star Green Star Office v3 As Built rating,
representing ‘Australian Excellence’ in environmentally sustainable
development. The building has also committed to achieving a NABERS
Base Building Office Energy rating of 5 stars.
Whilst the existing building regeneration provided challenges for the
project team, the end result delivers significant environmental and cost
benefits, and retains and rejuvenates this culturally valuable heritage
site.
More information http://www.ndy.com/project/5-martin-place
Equipment manufacturers like ABB and Johnson Controls sell energy-saving
equipment and process-optimisation services linked to their products, while Schneider
Electric's product offering is complemented by their status as a leading energy service
contractor.
Philips Lighting offer a range of advisory services and degrees of project management.
IT companies like Cisco, IBM, Microsoft and SAP have programs to collect and
manage energy data and civil works companies provide installation support and are
moving to maintenance and services (Leroi et al, 2013, pp 1).
BOX 2 Case study: Traditional energy efficiency
Sector Energy
Project TransGrid
TransGrid were looking for ways to demonstrate innovative
technologies in peak demand management while reducing
GHG emissions.
Service provider Advisian
Project Working closely with TransGrid, Advisian assessed a range of
potential technologies for energy efficiency, embedded
generation, energy storage and load shifting for application at
one of TransGrid’s regional centres. The final project
configuration included high efficiency LED lighting with smart
controllers, a solar PV array that also provides shelter for
vehicles and a Lithium Ion battery storage system.
Advisian undertook financial modelling to optimise the capacity
of each element and developed the basis of design for the final
arrangement, engaging with technology providers to finalise
the project budget and schedule.
Outcomes Advisian’s technology, business case analysis and project
delivery capabilities allowed us to quickly refine the
requirements, hone in on appropriate solutions, optimise the
outcomes for TransGrid and ensure the project was set up for
success in the delivery phase. The iDemand project at the
Wallgrove Regional Centre has been in operation since
September 2014, reducing peak demand at the site by more
than 50%.
More information http://www.advisian.com/our-experience-items/idemand.aspx
Engineering consulting firms such as Advisian, AECOM, NDY and GHD provide
consulting, technical design and modelling and project management services. Energy
retailer and generator Origin offers free energy use reporting and energy efficiency
consulting services as does AGL via its Energy Services business. Companies like UK
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based ENGIE also combine energy generation with energy retailing, energy data
management and energy efficiency project design and implementation.
Energy services may only be a relatively small part of the complete range of services
offered by these different organisational types, but they all contribute to an energy
efficiency outcome.
It was the consensus of most of the interviewees across these organisation types that
there was little distinction between the energy efficiency services that they provide and
the determinants of energy productivity defined previously. That is, most expressed a
belief that they were already providing energy driven systems and process
optimisation services and in some cases, involved in business model transformation as
well as the ‘traditional’ energy efficiency services they are most commonly known for.
The presence of energy driven process and system optimisation service capability
appeared to be more concentrated in industrial sector advisors. The involvement in
business model transformation was particularly prevalent with engineering consulting
firms that have embedded business strategy capabilities.
Research supports the view that these elements are common levers within an
integrated energy efficiency program (Figure 7 from Bain & Company).
It is difficult to ascertain the accuracy of service providers’ perceptions on range and
quality of energy productivity services. Similarly, there is uncertainty around the
relative role of energy efficiency, system optimisation and business model
transformation in any given project, and therefore the market uptake of true 'energy
productivity' projects.
Figure 7: Nine levers to address energy efficiency in an integrated program (Straehle et al, 2013, pp 7)
3.2 Management consultants and operational excellence service
providers
While energy service providers are building capacity in system optimisation and
transformation of business models, traditional providers of system optimisation and
business model transformation services are also making a contribution to the delivery
of energy productivity outcomes.
Management consulting and operational excellence firms are not commonly identified
as part of the cohort of energy service providers, yet the delivery of services such as
operations management, Lean Six Sigma methodologies, supply chain optimisation,
risk transformation, and change management often results in energy savings and
energy derived additional value.
Discussions held with firms of this type indicated that they are often engaged by the
client on issues of production output or cost management, but in the process of
executing their assessment will examine opportunities from traditional energy
management through to process optimisation and business model transformation.
Some projects are very large, with one example cited in discussions having a fee value
of $60-$70 million dollars and client savings of $800 million dollars.
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However, interviewees made it clear that energy related savings and other benefits are
generally bundled up in other higher level metrics such as production output or overall
savings.
Furthermore, technical energy efficiency skills were rarely held in-house, and unless
energy was a significant cost to the business, tended to only form a small part of the
overall project. While significant productivity benefits can be realised through these
projects, they may not be realising maximum energy productivity potential.
3.3 Markets segments addressed by energy productivity service
providers. The clients of self-identified energy efficiency service providers are highly
heterogeneous, encompassing small, medium and large companies across the
Australian economy. Many of these providers have specialisation in particular market
segment – such as manufacturing or commercial buildings, or a subset thereof – while
others work across sectors.
By contrast, the clients of management and operational excellence firms are generally
large Australian or multinational companies with relatively complex corporate
structures.
Engineering consulting firm clients can span across both of these segments, although
those we engaged with tended towards large sites and or projects.
3.4 Market drivers for energy productivity services There was a broad consensus among interviewees that recent, significant increases in
electricity and gas prices in Australia are likely to have two impacts on the market for
energy productivity services.
Traditional energy efficiency service providers are likely to be more in demand. Those
service providers that are also well versed in system optimisation and business model
transformation will be in a position to drive broader energy productivity outcomes.
Management consultant and operational excellence firms are likely to see energy cost
reductions become an explicit improvement metric, rather than being bundled into
other higher level metrics, as Boards and senior executives take a keener interest in
opportunities to lower energy costs through operational improvements.
While this increased demand for expert services will drive energy productivity
improvements, outcomes will be constrained where service providers lack knowledge
of, expertise in, or partnerships that can provide the full suite of competencies in
energy efficiency, system optimisation and business model transformation.
BOX 3 Case study: Process Optimisation
Type Process Optimisation
Sector Manufacturing
Project Ryan & McNulty
Ryan & McNulty, established in 1952, is a saw miller located in
Benalla, North East Victoria.
Service provider Not disclosed
Project Sustainability Victoria provided funding for 75% of the costs of a
materials assessment of the saw mill. The assessment examined
materials flows throughout the mill to identify areas where the materials
can be more efficiently managed to increase output and the value of
the sawn timber.
As the use of energy is so integral to the processes, many of the
recommendations for materials efficiency involve energy measures.
Five recommendations were made for actions such as improved
boilers, replacement of heat exchangers, the expansion of kilns for
greater capacity, controlling humidity levels, improving air flows, and
increased hot water pipe lagging.
Outcomes These actions will result in 40% less timber wastage, 42% improved
value of sawn timber and 10% in annual energy savings.
More information http://www.sustainability.vic.gov.au/services-and-
advice/business/energy-and-materials-efficiency-for-business/case-
studies/agriculture-case-studies/ryan-mcnulty
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3.5 Summary Energy efficiency, system optimisation and business model transformation strategies
all give rise to energy productivity outcomes. Entities delivering these strategies tend
to originate from two different areas – energy efficiency service providers and
management consultants / operational excellence service providers.
Energy efficiency service providers, comprised of a range of organisational types and
business activities, are coming from a foundation of technical energy efficiency
capability, and are expanding their service capabilities to deliver the other strategies.
Interviewees consistently indicated that they don’t tend to use the term energy
productivity to describe their service offerings, rather, they consider all three
determinants of energy productivity part of a comprehensive energy efficiency service
offering.
Management consultants and operational excellence firms enter energy productivity
from the other end of the spectrum, with foundational system optimisation and
business transformation capabilities, but often limited technical energy efficiency
capability (Figure 8). Energy productivity is generally not part of the service offering
description, which focuses instead on cost management and productivity
improvements.
Figure 8: The transition of different service provider types to delivery of energy productivity outcomes
Energy price rises are likely to drive changes at both ends of the spectrum. Energy
efficiency specialists will find their services are more in demand, and management
consultant and operational excellence firms are likely to see energy cost reductions
become an explicit improvement metric in their contracts. However in both cases,
energy productivity outcomes will be constrained if the full suite of competencies in
energy efficiency, system optimisation and business model transformation are not
available.
Building the number and capability of energy efficiency service delivering system
optimisation and business transformation strategies would boost energy productivity
outcomes. There is also an opportunity for management consulting / operational
excellence firms to grow in-house expertise in energy efficiency – or partner with
technical energy efficiency firms – to further enhance productivity outcomes through
the energy lens.
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BOX 4: Case studies: Business Model Transformation
Sector Transport Food
Project Los Angeles County Metropolitan Transportation Authority
The Los Angeles County Metropolitan Transportation Authority (Metro) serves as the
transportation planner and coordinator, designer, builder and operator for one of the
US’s largest, most populous counties.
Murray Goulburn Cooperative
Murray Goulburn Co-operative Co. Limited is an agricultural cooperative formed in
1950 from a group of dairy farms and has grown to become Australia's largest
processor of milk
Service provider Not disclosed CSIRO
Project The emergence of electric vehicles as an alternative type of personal transportation
influenced how Metro plans for an integrated multi-modal transportation network.
In 2013, Metro deployed twenty electric vehicle charging stations at five of Metro’s
park and ride locations.
The placement of electric vehicle chargers at Metro park and ride locations was
strategic. Charge stations at Metro park and ride facilities provide much needed
infrastructure to Plug-In Electric Vehicle (PEV) users, but also provide those users
with connectivity to Metro’s other modes of transportation.
Murray Goulburn worked with CSIRO's scientists to develop a chromatographic
system that has allowed the company to treble its cheese production each year.
Even better.
Outcomes This powerful link enables important consumer behavioural changes by blending two
low-carbon transportation options: PEV and public transportation via rail and any of
Metro’s natural gas fuelled buses.
Using Metro’s approach to incorporating EV chargers into its park and ride stations
as a fundamental strategy, Southern California Edison has successfully applied for a
tariff to fund extensive deployment of electric vehicle chargers across Southern
California, ensuring that the transit and electric vehicle nexus continue to be a viable
option in avoiding trips and traffic congestion in Southern California roads and
highways
They commercialised protein ingredients from the bi-product streams and are now
able to use 90 per cent of the whey in valuable manufactured products such as the
billion dollar sports foods and beverages and meal replacement markets in North
America.
More information https://www.metro.net/projects/ev/ https://www.csiro.au/en/Do-business/Partner-with-our-Business-Units/Do-business-
Agriculture-Food/Food-innovation-centre/Our-expertise/Process-engineering
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4 Essential knowledge, skills and experience for energy productivity outcomes Building an understanding of the knowledge, skills and experience needed to deliver
robust energy productivity outcomes is essential for establishing a professional
development pathway.
A significant amount of work has been done over recent years on the subject of energy
management skills. Much of this work has direct applicability to – or lessons for – the
study of energy productivity skills.
This section of the report collates the findings of several energy management skills
studies and schemes, identifying the high-level competency requirements for energy
productivity service providers.
4.1 Energy efficiency as a foundation Delivering high quality energy efficiency outcomes is a foundational component of
energy productivity. Traditional energy services providers are often the first port of call
for energy users seeking to improve their energy productivity.
It is therefore worthwhile to examine the competencies – the knowledge, skills and
experience – that are considered essential for traditional energy efficiency service
providers.
Three initiatives that defined professional competencies for specific energy efficiency
roles provide a useful benchmark (Box 5). While these initiatives all have different
focus areas, all identified similar competency requirements (Table 2) that can be
grouped into four common areas:
1. Project planning and management
2. Business and innovation
3. Communication and stakeholder engagement
4. Energy project specific
4.2 Application to energy productivity There are some significant commonalities in the headline competencies that according
to these studies are important to deliver an energy efficiency outcome. These
categories were confirmed by interviewees, and are regarded as central to energy
efficiency service providers.
BOX 5: Skills analysis studies
1. The Global Superior Energy Performance Partnership (GSEP) Knowledge and Skills
Needed to Implement Energy Management Systems in Industry and Commercial
Buildings (2013) sought to establish the full range of workforce knowledge required to
effectively implement an energy management systems in commercial buildings as well
as industry (GSEP, 2013).
Essential knowledge and skills across the workforce were classified into nine general
categories (GSEP, 2013, pp 7). A full mapping of skills and knowledge within each of
these categories against the stage of the energy management system implementation
they are required is included at Appendix A: Knowledge and skills needed to implement
energy management systems in industry and commercial buildings
2. The Long Term Training Strategy for the Development of Energy Efficiency
Assessment Skills (GHD, 2010a) sought to determine the functional skills required to
undertake energy efficiency assessments in line with Energy Efficiency Opportunities
(EEO) program requirements (Australian Government, 2010, pp 1).
The project identified 33 functional skills used when conducting energy efficiency
assessments that were grouped into six broad categories (GHD, 2010a, pp25). The full
list of 33 function skills is included at Appendix B: Functional Skills for Energy Efficiency
Assessment.
3. The Energy Efficiency Certification Scheme (EECS) certifies professionals that have
the skills and experience to lead and manage all types and scale of building energy
upgrades, up to and including a complex Integrated Building Energy Retrofit (IBER)
and to work effectively with their clients.
EECS assesses professionals against ten areas of required competency (Appendix C:
EECS assessment areas).
To what extent do these competencies also support energy efficiency service providers to help businesses optimise systems and transform their business model?
14
Table 2: Comparison of essential competencies identified across integrated building energy retrofits, implementation of energy management systems and energy efficiency assessments
Project planning and
management
Business and innovation Communication and stakeholder
engagement
Energy project specific
EECS Area 1: Leading and managing
IBERs - Ability to effectively lead
and manage an IBER project in its
entirety, from scoping through to
completion.
Area 9: Risk management - Ability
to effectively manage the risks
associated with an IBER
Area 4: Business case development
and project justification - Ability to
undertake cost benefit analyses and
develop business cases
Area 5: Client procurement options
for IBERs - Ability to advise clients on
the procurement models available, and
the most appropriate model for a given
project.
Area 10: Stakeholder engagement -
Ability to effectively manage the
stakeholders associated with an IBER
Area 2: Energy consumption, assessments and
analysis - understanding of energy consumption,
collection, billing, modelling and analysis, and ability
to oversee energy assessments and audits.
Area 3: Measurement and verification of energy
savings - Ability to oversee a robust process for
measurement and verification of energy savings.
Area 7: Energy efficiency and generation
technologies - Understanding of energy efficiency
and generation technologies, systems and processes
Area 8: Commissioning and tuning - Ability to
ensure equipment is appropriately commissioned
and tuned.
Area 6: Interdependencies between building
systems and managing operational impacts -
Ability to ensure integration between building
systems whilst managing the operational impact of
an IBER
GSAP Management skills Financial and accounting skills
Analysis
Critical thinking skills
Communication and interpersonal skills Energy management knowledge
Energy assessment and opportunity identification
Knowledge of regulations, standards, and best
practices
Building and facility knowledge
EEO Project Planning and
Management - Ability to direct and
guide a group in completing tasks
and attaining goals of energy
efficiency assessment
Identifying Potential Opportunities –
Ability to think strategically and
creatively
Decision Making – Ability to develop
and assess business cases for
implementation of energy efficiency
opportunities
Communication Planning and
Implementation – Ability to exchange,
engage, convey, and express
knowledge and ideas in an energy
efficiency assessment context
Understanding Energy Use – Ability to arrange and
retrieve data, knowledge and ideas, research and
investigation of specific technical and financial
knowledge
Monitoring and Investigation – Ability to install
appropriate monitoring equipment and develop
analysis systems
Legal or compliance requirements
15
4.3 Mapping competencies of energy efficiency service
providers against broader energy productivity determinants
Interviewees indicated that some of the high-level competencies identified above are
transferable from traditional energy efficiency to the other determinants of energy
productivity.
For example, the knowledge, skills and experience to deliver sound project planning
and management is essential across all energy productivity strategies, whether they
are executed as separate elements or as an integrated approach. Similarly,
competencies associated with stakeholder engagement are broadly transferable.
The traditionally strong energy project specific competencies would also ensure
energy efficiency is an important component of any energy productivity project. Most
interviewees argued that delivery of an integrated service that addressed the other
determinants of energy productivity – system optimisation and business model
transformation – would require new or deeper business and innovation knowledge,
skills or experience.
In broad terms, they expressed the view that energy efficiency professionals –
particularly those working in the industrial space – are likely to have some expertise in
system optimisation, as it interacts so directly with their core energy efficiency
knowledge. They suggested business model transformation is an area that far fewer
energy efficiency professionals have deep expertise in.
They commonly cited the need for broader and deeper industry knowledge on sector
specific best practices and processes, globally relevant emerging trends and business
challenges that extend well beyond issues of energy use.
Specifically, it was suggested that the ability to think critically, creatively and
strategically, especially in the identification of opportunities for improvement, would be
enhanced through knowledge of and experience in approaches such as Lean
Manufacturing, Six Sigma and Continuous Improvement.
They expressed the view that this knowledge, supported by real world, sector specific
industry experience was essential for engagement at the senior levels of the client
organisation, and credibility of the process and recommendations.
Similarly, it was felt that to develop a comprehensive energy productivity offering,
energy efficiency services providers would need more complex financial analysis skills,
and knowledge of new methods of calculating value to support system optimisation
projects and business model transformation.
Interviewees also pointed out that projects that include a major focus on a particular
determinant of energy productivity – such as system optimisation – are best led by
professionals with skills and experience that are directly relevant. However, the ability
to hire or partner with relevant experts means that the project lead does not need to
become a specialist in every area themselves. They simply need enough knowledge to
manage the interactions between different project components so that an effective
energy productivity outcome can be delivered.
More detailed examination of successful energy productivity projects, the strategies
employed to achieve the energy productivity outcomes and the make-up of team
members is needed to comprehensively map the necessary depth of knowledge, skills
and experience required in each of these areas.
4.4 Mapping competencies of management and operational
excellence consultants against broader energy productivity
determinants
A literature review found that there has been little work done on the overlap between
energy productivity competencies and the skills of management and operational
excellence consultants.
However interviewees expressed the view that many of these firms had an inverse
skills gap to that displayed by energy efficiency service providers; their expertise in
system optimisation and business transformation is high, but their expertise in energy
efficiency is relatively low.
They – like their counterparts in the energy efficiency space – have project
management and stakeholder engagement skills that are broadly transferrable.
Business an innovation competency levels tend to be high, but are often lacking in the
application of these skills to energy productivity related activities. Energy project
specific competency is low.
16
As noted above, energy price rises are expected to drive their clients to include energy
cost reductions as an explicit improvement metric in the contracts of management and
operational excellence consultants. Given this, the gap in energy efficiency
competency is one consultants are likely to be looking to fill.
Interviewees indicated that they expected this gap would be addressed in two ways:
the firms would either hire existing experts from the broader pool of Australian energy
efficiency professionals, or they would partner with energy efficiency service providers.
4.5 The importance of team It is a truism that deep expertise in all areas of energy efficiency is never held by one
individual. This is a point made explicitly by each of the three initiatives examined
above.
This is even more true of genuine energy productivity projects, a point that
interviewees confirmed. Comprehensive projects are most effectively undertaken by a
team under expert and experienced leadership. The team may be comprised solely of
company employees, or may be made up of company employees complemented with
external energy service providers (GHD 2010a, pp 3).
While individual tasks within an energy productivity process may be led by an
individual, the end-to-end process will draw on a range of people, in different roles and
with different specialisations.
Energy efficiency service providers have significant in house industry specific technical
expertise. The large engineering consultancies and management consultancies can
call on team members with significant industry specific experience and expertise as
well as on team members with specialisms in areas including taxation, organisational
change management, external stakeholder engagement, statutory approvals and
finance brokerage.
The message is clear. Teams of individuals – or teams of firms with complementary
expertise – will be critical to unlocking Australia's energy productivity potential.
4.6 Summary Numerous studies point to four common competency areas for the successful delivery
of energy efficiency projects including general cross cutting competencies and energy
project specific competencies.
These four competency areas are also necessary for the two other determinants of
energy productivity, system optimisation and business model transformation. However
the specific methodologies required that support each specialisation are different.
For project management, communication and stakeholder engagement competencies,
experience that is relevant to a given project type is valuable, however in broad terms
these competencies are transferable among the determinants of energy productivity.
The scale and complexity of the project determines the depth of knowledge, skills and
experience required for sufficient competency.
In other competency areas, deeper knowledge, new skills or more experience is
required for system optimisation and business model transformation. Globally relevant
industry sector knowledge and experience, knowledge of and experience in
approaches such as Lean Manufacturing, Six Sigma and Continuous Improvement
and complex financial analysis skills and knowledge of new methods of calculating
value were considered key.
Energy efficiency service providers commonly have transferable skills in project
management stakeholder engagement, but expertise in complex system optimisation
and business model transformation is less commonly found. Management and
operational excellence consultants, while strong in some competency areas are often
lacking in the project specific energy skills (Table 3).
Table 3: Broad assessment of average competency levels in energy productivity determinants among key professional groups, based on responses from interviewees.
Determinant Average competency level:
energy efficiency
professionals
Average competency level:
Management and operational
excellence consultants
Energy efficiency High Low
System optimisation Medium High
Business model
transformation
Low High
An effective energy productivity outcome requires individuals that are highly skilled in
the competencies needed for the strategy to be applied, however expecting an
individual to be skilled in all areas is unrealistic. Each project would be different based
17
on the natures of the client and scale of the project. Teams and approaches must
adapt.
Multi-disciplinary teams – and potential collaboration between organisations with
complementary expertise; is the most effective way of driving an outcome. Teams
need a project leader that has a working knowledge of the different strategies and the
ability to identify which are best employed given the circumstances.
However there is a consensus that in either case, delivery of delivery of integrated
services that address all three determinants of energy productivity will require skills
development.
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5 Energy efficiency and energy productivity training approaches The capacity of the energy efficiency sector to provide the services that will underpin a
significant ramp up in energy productivity relies on having a growing pool of
professionals with relevant knowledge and skills. This is the same pool of
professionals that management and operational excellence firms will be drawing upon
to augment their current expertise, either through partnerships with other providers or
by building teams directly.
All interviewees agreed that more energy efficiency professionals are needed, with
more business relevant expertise. Thus programs that train energy service
professionals are essential to drive energy productivity improvements in all sectors of
the economy.
The different determinants of energy productivity have different upskilling needs.
System optimisation and business model transformation are relatively mature
strategies within their traditional service providers; the management and operational
excellence type of professional firms. These firms often don't prioritise energy
productivity within their service offering due principally to a historic lack of client
demand.
Energy efficiency is a less mature discipline, so establishing a sound foundation of
energy efficiency skills is a logical starting point.
This section of the report examines the current training approaches for developing
energy efficiency competencies as a platform for expanded energy productivity
knowledge and skills.
5.1 The training need The need for capacity building around energy productivity within organisations and
amongst service providers, including training is frequently cited (Figure 9). It is also
clear from review of these and other sources that the specifics of training needs have
not yet been considered in any meaningful detail.
The A2EP series of roadmaps and other international reports (U.S. Department of
Energy, 2015; Global Alliance for Energy Productivity, 2015) focus largely on building
capacity within the downstream energy using organisation rather than in service
providers. Building this internal capacity is important, however turning all energy users
into energy productivity experts is unrealistic, at least in the short to medium term.
Service providers have a crucial role supporting and guiding energy users, which will
require specialist knowledge, skills and experience.
Educate and engage consumers, workers,
business executives, and government
leaders on ways to drive energy productivity
gains. Provide improved information on
building energy use, improve corporate
energy management and transparency, and
enhance university curricula and training
programs on energy use and productivity
(GAEP, 2016, pp 8).
Higher Education Institutions: Create new
curricula and expand workforce training
opportunities across multiple disciplines
(e.g., building trades, engineering,
governmental policy, economics, and law)
for careers in the clean energy, energy
efficiency, and advanced manufacturing
fields (U.S. Department of Energy, 2015, pp
iv)
Training, networking events, case studies
and guidance materials ensure that energy
managers, energy auditors, company
personnel, certification bodies and policy
makers can learn from best practice
approaches (OECD/IEA, 2012, pg 12)
Building the capability to understand,
develop and implement energy efficiency
opportunities and their value to the
enterprise is a critical way of overcoming the
informational barriers to energy efficiency.
Training is vital to this. (Fawkes et al, 2016.
Pp 90)
Figure 9: Recognition of the need for training from multiple sources
There is also a need to develop strategies that reflect the different needs of both
existing energy service providers and future workers. The existing workforce is key to
rapid transformation, while development of future workers ensures a growing pool of
work ready energy practitioners.
Existing workers and future workers will generally utilise different education and
training products. Existing workers are more likely to engage with on the job/non-
accredited training and flexible learning. Future workers are more likely to engage in
structured and accredited face-to-face learning (such as undergraduate programs and
apprenticeships (Allen Consulting Group, 2012, pp ix).
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5.2 Stakeholders in training There are a variety of parties with a role in training and skills development for energy
services providers including the Australian Government, state and territory
governments, professional and industry bodies, providers of higher education, VET
and non-accredited training, existing service providers and energy users, both as
consumers of services and as employers.
However, coordination amongst the various stakeholders is very limited, with many
initiatives resulting in duplication of effort and a lack of clear training pathways.
Effective coordination is critical, and this is an area where government can be highly
influential (Allan Consulting Group, 2012, pp vii).
A standing forum for coordination between federal and state governments in this space
could be particularly useful given some jurisdictions – such as NSW – are well ahead
of their peers in terms of effort and expertise in energy efficiency capacity building.
This forum could allow other states to leverage the resources that already exist, and
direct investment to complementary resources.
5.3 Availability of training for energy efficiency knowledge and
skills Establishing a firm foundation of energy efficiency knowledge and skills increases the
value of energy efficiency projects and positions service providers to apply their
technical energy expertise and other cross cutting competencies to system
optimisation and business model transformation strategies.
The 2012 Allan Consulting review of skill requirements across key occupations and
industries responsible for the delivery of energy efficiency improvements included
analysis of the key higher education, nationally accredited vocational education and
training (VET) courses and other non- accredited courses available to address energy
efficiency advisor skill requirements (Error! Reference source not found.).
Higher education
The choice of higher education courses has expanded in recent years. A current
search for ‘energy’ related courses on online education guides including ‘Learning and
Teaching for Sustainability’ (www.sustainability.edu.au), the ‘Good Universities Guide’
(www.gooduniversitiesguide.com.au) identified 27 undergraduate and 43 post
graduate courses (Appendix D: Training resources). These are courses comprised of
many more related courses or units.
Table 4: Education courses for energy efficiency advisors (EEC analysis, Allen Consulting Group, 2012, 129).
Higher education
Bachelor of Science
Bachelor of Engineering
Master of Engineering
Master of Science (Environmental Engineering)
Master of Design Science (Sustainable Design / Building
Services)
Vocational education
and training
Advanced Diploma of Engineering Technology - Air- conditioning
and Refrigeration
Advanced Diploma of Engineering Technology - Electrical
Advanced Diploma of Sustainable Building Design
Cert IV Home Sustainability Assessments
Diploma of Carbon Management
Vocational Graduate Certificate in Sustainable Operations
Other courses
Energy Auditing Levels 1-3
Infrared Thermography Levels 1-3
Course in Carbon Accounting
Short Course - Air Barrier Technology
VET
The ‘MySkills’ website (www.myskills.gov.au) identified 19 energy and sustainability
related VET courses (Appendix D: Training resources).
However, not all of these courses are accessible. The presence of a qualification
within the VET Australian Quality Framework and inclusion on the MySkills website is
not an automatic indication of availability via TAFE and other Registered Training
Organisations (RTOs).
For example, two qualifications likely to be relevant the development of energy service
professional, the Certificate IV in Energy Efficiency and Assessment and the
20
Certificate IV in Energy Management and Control are not currently offered by any
Registered Training Organisation in Australia.
Some units of competency within these qualifications are offered as skills sets;
packages of competencies not leading to a formal qualification. The ‘Sustainable -
Energy Efficiency Systems Designer’ skill set has prerequisites of a degree in
Electrical Engineering, an Advanced Diploma or Diploma of Electrical Engineering or
an electrical trade qualification from the Electrotechnology Training Package or
equivalent and is offered by several registered training organisations in NSW and
Victoria.
In a positive step, Melbourne Polytechnic, in partnership with Energy Skills Australia,
has recently secured a Sustainability Victoria Energy Efficiency Capability Grant to
develop and pilot the Certificate IV in Energy Management and Control. The course
will then be available at other training organisations around Victoria (Victorian
Government media release, 16 June 2017).
Other non- accredited courses
Up-skilling of the current workforce can also be undertaken through non-accredited
short courses offered by RTOs, professional associations, industry groups, employers
and government including
NSW Office of Environment and Heritage
Engineers Australia
Energy Efficiency Council
Facility Managers Association of Australia
Australian Institute of Refrigeration Air Conditioning & Heating
Property Council of Australia
Master Plumbers' & Mechanical Services Association of Australia
National Electrical Contractors Association
Moreland Energy Foundation
National Electrical and Communications Association
Pointsbuild
Energy Skills Australia
Training is often developed as partnerships between industry bodies and registered
training organisations with the financial and technical support of government. Amongst
its many higher education, VET and industry sector outcomes, the NSW Office of
Environment and Heritage Energy Efficiency Training Program funded the
development of 30 new industry training courses developed and delivered in
partnership with business (Box 5).
Many of these training materials are still accessible, but it is not known how well the
resources are currently utilised and their applicability to the development of energy
efficiency and energy productivity competencies.
International programs of note include the UK Energy Managers Association’s Junior
Energy Management Apprentice Programme (BOX 6) and the UK Energy Institute’s
portfolio of energy management training (BOX 7)
Consulting firm Energetics partners with the Association of Energy Engineers (AEE) to
host the four and a half day Certified Energy Manager® (CEM®) training program and
certification exam.
Box 5: NSW Office of Environment and Heritage Energy Efficiency Training Program project
examples
The GPT Group, Sustainable Business and Australian Institute of Refrigeration,
Air Conditioning and Heating (AIRAH) partnered to develop a training package for
property managers and subcontractors to maximise energy efficiency in
commercial buildings.
The Air Conditioning Mechanical Contractors (AMCA) and Change2 in association
TAFE NSW – Western Sydney Institute, developed Energy efficient HVAC
systems training for supervisors, engineers, project managers, estimators and
technicians.
Pointsbuild Pty Ltd in partnership with the Master Builders Association of NSW,
Environmental IQ and others are creating three energy efficiency training courses
for NSW licensed builders.
Individual employers such as Transfield Services Ltd partnered with Swinburne
University of Technology to provide Energy efficiency and sustainability
awareness training for employees including mechanical fitters, project and
operation managers and supervisors.
(Urbis, 2013, Appendix E)
Interviewees indicated that many employers are investing directly in in-house
education and training to develop their employees. This may range from consulting
21
skills and customer management, through to technical product installation or operation
training.
5.4 Certification of energy efficiency competencies As a relatively new professional segment, professional certifications in the energy
service sector are not well developed, yet certification can play a central role in helping
businesses identify trusted professionals.
The freight transport roadmap highlights the value to industry of establishing
accreditation or performance requirements against professional standards such as the
standard for energy auditing of transport operations (AS/NZS 3598.3) (2xEP 2017
Transport, pp 51).
The EEC has worked with state and federal governments to develop the Energy
Efficiency Certification Scheme (EECS), a professional certification for the individuals
that lead comprehensive energy performance upgrades of commercial buildings.
Other professions, trades and roles have voluntary professional accreditations that
have good coverage in their sectors. These include:
Engineers Australia provides a range of professional accreditations such as
Chartered Professional Engineer (CPEng)
Facility Management Association of Australia (FMA) provides Certified Facility
Manager (CFM) and Facility Management Professional (FMP) accreditations
Green Building Council of Australia provides Green Star Associate and Green
Star Accredited Professional accreditations
The EEC also has a project underway to determine the potential for a training and
certification pathway to the AS/NZS 3598:2014 energy audit standard. There is
currently no mechanism to acknowledge and reward the investment made by
experienced individuals in developing the full range of knowledge, skills, experience
and processes that an auditor requires to undertake a robust, standard compliant
audit. Nor is there a recognised career pathway to guide new and developing service
providers through the range of education, training and professional development
options to achieve an expert level.
This lack of recognition, clear professional development pathway and ability to
differentiate between providers are all barriers increasing the number and quality of
service providers and improving the value of the audit outcome to clients.
Internationally, the American Association of Engineers (https://www.aeecenter.org) has
20 certifications for energy professionals including options for recognition at different
career stages:
Energy Efficiency Practitioner
Energy Manager in Training
Certified Energy Manager®
Certified Energy Auditor™
Certified Business Energy Professional
BOX 6: United Kingdom’s Junior Energy Management Apprentice Programme
The Junior Energy Manager Apprenticeship Programme started in 2015. The development
of the Junior Energy Manager Apprenticeship Standard has been supported by a strong
group of small, medium and large enterprises from different industries, professional
institutes, and coordinated by the UK Energy Managers Association under the auspice of
Department for Business, Innovation and Skills (BIS).
The Junior Energy Manager Apprenticeship Programme diploma qualification is open to
those interested in becoming energy managers, and newly appointed energy managers.
The apprenticeship operates on a day-release basis where the candidates are re- leased
from work for one-two days per week to attend in-class training and assessments. The
remaining days are spent working in the company, and on self-study.
Classes are provided by several institutes, associations, further education colleges and
independent training providers, and are designed to develop a broad range of basic skills in
energy assessment and measurement of energy consumption, technical and operational
energy management issues, energy management strategy, regulatory and legal compliance,
reporting and communicating the status of energy performance and progress of
improvements.
Up to two-thirds of the tuition fees are funded by the Government and the remaining by the
apprentice’s employer. During the 24-month long scheme, the apprentice should be
employed or have access to facilities to complement and practice the skills taught.
At the end of the 24-month apprenticeship, and upon successful completion of the end-of-
programme project, the candidate can be granted a diploma and is eligible to join several
professional associations and institutes as an energy management technician and a
22
recognised energy manager. The apprenticeship programme also acts as a bridge to
undergraduate and postgraduate level energy management and other specialist
qualifications in the United Kingdom. (Fawkes et al, 2016. Pp 92)
At an organisational level, the US Department of Energy undertakes accreditation of
Energy Service Companies (ESCOs) to ensure that they have the appropriate
financial, technical and management capabilities. Accredited ESCOs are then added
to a Qualified List of Energy Service Companies (ESCOs) and able undertake Energy
Savings Performance Contracts for the Federal Government. Although there is no
legal requirement for any other level of government or commercial company to use
ESCOs that are on the qualified list, research demonstrated that other levels of
government and organisations use the Qualified List of ESCOs as a benchmarking tool
or requirement in their selection and procurement of ESCOs. ESCOs must re-certify
every year to remain on the Qualified List.
BOX 7: UK Energy Institute’s Energy Management Training Portfolio (Fawkes et al, 2016. Pp 90)
The Energy Institute offers a three level energy management training portfolio as follows:
Level 1: Energy Management Certificate
A five-day practical introduction to energy management
recommended for those new to an energy management role or
those taking on energy management responsibilities in an
existing role for the first time. Available in classroom or online
format. Topics covered include:
Introduction to energy management – building an
energy management system
Metering and buying
Metering, monitoring and targeting techniques
Regulations and standards
Energy auditing in practice
Energy auditing – report writing
Energy management solutions
Energy management project development
Renewables
Mounting an effective staff awareness campaign.
Level 2: Energy Management Professional
A 150 hour online course providing all the knowledge and skills
required of a professional energy manager. Recommended for
those with two or more years experience in a related role. Core
modules include:
The role of an energy manager
Heat transfer
Fuels and combustion
Finance
Monitoring and targeting.
Plus ten electives
Level 3: Advanced Energy Manager
A 12-day classroom course for experienced energy managers
covering project management and key technologies.
Recommended for those with three or more years experience in
an energy management role. Topics covered include:
Monitoring and targeting
Energy costs and project management
Energy fundamentals
Energy procurement
Implementing and auditing ISO 50001
Energy and emissions laws and trading
Space heating
Energy in buildings
Staff awareness
Process heat, steam and heat recovery
Combined Heat and Power
Air conditioning
Refrigeration
Lighting
Compressed air
Renewables.
23
5.5 Gaps in energy efficiency training and skills development Current energy efficiency professionals and those seeking to enter the profession have
a range of training options available to them. However, there are service providers who
still report gaps in base level energy efficiency skills and knowledge for those entering
the workforce, particularly from engineering degrees. Consumers of energy services
have shared experiences of highly variable quality that indicate the presence of gaps
in essential areas in some service providers.
This would indicate that the common gaps in provision of energy efficiency knowledge
and skills, including energy literacy; systems thinking; communication and the
business case; change management; integrated teams; data collection and
analysis/assessment; identify and implement opportunities; and respond to external
drivers (Allen Consulting Group, 2012, pp 69) have not been fully addressed. Doing so
should be a priority.
A detailed assessment of action against the 11 integrated recommendations made by
Allan Consulting would be an important starting point. There are clear areas of inaction
such as the absence of a coordinated national program for professional development
of VET practitioners in energy sustainability and energy efficiency.
5.6 Demand for training and certification The presence of gaps in the provision of energy efficiency knowledge and skills is
likely a reflection of the ‘patchy demand’ for energy efficiency related education and
training which is less than it ideally would be to drive a significant expansion of training
offered (Allen Consulting Group, 2012, 62).
Ongoing limitations posed by market barriers in the broader implementation of energy
efficiency opportunities by businesses mean that in the short to medium term the level
of demand for energy efficiency skills will not reflect the underlying need and value of
these skills (Urbis, 2013, pp iii).
Ultimately, it is as the labour market progressively determines that a particular skill or
domain of knowledge is valuable, and begins to demand it accordingly, that a
response from education and training providers becomes visible (Allen Consulting
Group, 2012, pp v).
Market demand also drives the uptake of professional certification. Both NSW and
Victoria are moving to require a level of energy efficiency professional certification to
undertake energy efficiency building retrofits undertaken through government energy
efficiency programs. It can be expected that this requirement will increase uptake of
the energy efficiency certification.
The EEC has also produced information materials targeted at consumers of energy
efficiency services, encouraging the use of certified professionals.
Certification in turn drives demand for training, provided the training outcomes are
clearly linked with a stepping stone to certification.
There is a real role for Government to establish consistent and stable policy and
programs that overcome energy efficiency market barriers and drive demand for
energy efficiency training and certification.
Such action is particularly critical given Australia’s energy sector is in a profound
period of change. The electricity sector is being transformed through the closure of
ageing coal-fired generators, increasing levels of renewable energy and many other
factors. In combination with outdated electricity market rules, these changes are
increasing the price and reducing the reliability of electricity.
At the same time, Eastern Australian gas prices have risen rapidly, which is a
profound threat to the future of energy intensive industries like food, beverage and
building products manufacturing, agriculture and mining.
Coming from a position of historically low energy prices meant that generally only the
largest and most energy intensive businesses built deep capacity in energy
management. Turning around an economy-wide capacity constraint in a short period
will be a major challenge, which means that serious, concerted effort between
business and government is necessary.
5.7 Areas of new or deeper skills needs Energy efficiency professionals recruited by or partnering with management and
operational excellence consultants have less need to develop a deep expertise in
system optimisation or business transformation, ad these skills will be held by others
working on the project.
However traditional energy services firms seeking to provide an integrated energy
productivity offering will need to recruit experts with relevant expertise, or upskill their
own staff.
24
Within mining, a number of energy productivity-related training resources are currently
available but the 2XEP roadmap reports that many are not fully utilised and could be
repackaged to emphasise energy productivity issues. For example, the LEAN Six
Sigma program in place on many mine sites could be enhanced to emphasis energy
productivity (2xEP 2016 Mining, pp 29).
Several institutions and organisations provide operational excellence training including
the Association for Manufacturing Excellence Australia (http://www.ame.org.au)
offering course including:
Value Steam Mapping Master Class and Site Tour
Driving Productivity Through Positive Practices Workshop
Effective Problem Solving
The Lean Six Sigma Business Excellence Institute (www.lssbei.com) offers a variety of
Lean Six Sigma training in conjunction with the University of Technology Sydney.
Some interviewees noted a need for dedicated training for current energy efficiency
professionals that 'bridges the gap' between traditional energy efficiency skills and new
skills like system optimisation or business transformation.
5.8 Job readiness of graduates
The current perception amongst service providers of the job readiness of graduates
and new professionals varied, although all reported utilising in-house training to
develop and ‘tune’ the competencies within staff.
One management consulting firm advised that they generally hire business or
engineering graduates, or a combined degree, believing this degree mix provided a
good grounding in the essential problem solving skills they felt was needed. They then
invest significantly in the development of consulting skills such as client management,
report writing and organisational specific value-driver mapping through in-house
training. Team members undertake a minimum of two-weeks in-house training
annually.
Industry experience is generally developed on the job, or recruited into the team at the
senior level, often in the form of a senior industry figure.
5.9 Summary Improving the capacity of industry to deliver energy productivity outcomes should focus
on developing energy efficiency skills of current and new energy efficiency
professionals.
Current energy efficiency professionals and those seeking to enter the profession have
a range of training options available to them. However, skills gaps are still reported in
both new entrants and existing service providers.
Addressing this should be a priority and creating demand for energy services provided
by certified professionals is key. Greater demand for certified services will drive
demand for training to which training providers will respond.
There is a significant amount of material already available and it may be a matter of
better coordination and collaboration that addresses the gaps. A standing forum that
facilitates coordination between jurisdictions would allow current material to be
leveraged across the country.
A comprehensive process of identification and assessment of the effectiveness of
available training resources to supply the necessary competencies was beyond the
scope of this study. However, to examine the learning outcomes from all courses
would be an important step in developing a complete career pathway for existing
professionals and new entrants in to the energy services market.
25
6 Building the energy productivity services capacity Professionals in this field are drawn from a range of backgrounds including
engineering, financial management, organisational change, stakeholder engagement
and organisational excellence / process optimisation. They occupy a wide variety of
roles delivering the essential services required for an energy productivity outcome.
Thus, a wide range of career paths that can lead to a specialisation in energy
productivity. Further, no individual will be expert in all aspects of energy productivity,
even within a specific sector of the economy such as manufacturing. This reality
underlines the importance of multi-disciplinary teams in driving an optimal energy
productivity outcome.
In light of this, policymakers, industry bodies, employers and others seeking to boost
energy productivity skills in the economy should avoid prescriptiveness about the
pathway taken by individuals, instead focusing on the destination – identifying and
supporting the development of the range of competencies necessary to deliver an
energy productivity outcome in target economic sectors. This will ensure that a
growing pool of practitioners are focussed on the delivery of comprehensive, high
value and highly attractive outcomes.
Recommendations are intended to grow the pool of quality service providers and to
ensure they have an attractive business and professional occupation.
Recommendation 1: Establish a cross-jurisdictional forum to co-ordinate
energy productivity capacity building and training development
It is recommended that the Australian Government establish a body that facilitates
cooperation between federal and state governments, industry and the education
sector on energy productivity capacity building.
Rationale
As noted in Section 5, a lack of coordination between governments, industry and
training providers often results in available resources not being utilised across multiple
jurisdictions, or a duplication of effort creating similar resources.
Given the strategic importance of energy productivity to Australian competitiveness
and wellbeing and the relatively early stage of development of Australia's energy
efficiency and productivity sector, a standing body to facilitate coordination and
collaboration in this space is justified.
Recommendation 2: Identify the focus sectors and determine specific skills
needs
It is recommended that the Australian Government invest in work that identifies
target sectors, determines the relevance of each of the energy productivity
determinants to these target sectors, and the availability of skilled professionals to
deliver against those strategies.
Rationale
Different sectors of the economy present very different energy productivity
opportunities, and it is worthwhile to seek the greatest energy productivity return on
investment in professional development.
Where there is a significant competency gap in a critical determinant, such as energy
efficiency skills in manufacturing, or system optimisation in agriculture, focus efforts on
addressing these specifically as further recommended.
Recommendation 3: Establish the knowledge, skills and experience required
to deliver energy productivity outcomes in focus sectors
It is recommended that energy efficiency and productivity service providers, their
customers and relevant industry bodies work together to build on the findings of this
study to fully map the knowledge, skills and experience required to deliver high
quality energy productivity outcomes in target sectors.
Rationale
This project has established the high-level competencies essential for the delivery of
energy efficiency and energy productivity outcomes. However, the needs in target
sectors will be particular, and will require deeper investigation.
Detailed examination of successful energy productivity projects, the strategies
employed to achieve energy productivity outcomes and the particular expertise of team
26
members is needed to comprehensively map the depth of knowledge, skills and
experience required.
This analysis should also include consideration of the skills and knowledge required
within client organisations to effectively procure energy productivity services, and work
with experts to deliver a robust energy productivity outcome.
This would give both service providers and clients a good understanding of the needs
of a high-quality team and provide a basis for recruitment of expertise or collaboration
between service providers with complementary expertise.
Recommendation 4: Undertake a review of learning outcomes of existing
training resources against identified energy productivity competencies in
target sectors
It is recommended that industry bodies and higher education, VET and non-
accredited training providers work together to undertake a comprehensive review of
learning outcomes across the wide variety of learning resources identifying areas
for refinement or gaps.
Rationale
The choice of higher education, VET and non-accredited education and training
courses has expanded in recent years. It is important that accessibility and learning
outcomes of these courses is understood and is clearly communicated to current and
future workers in the context of a professional development pathway.
This approach would leverage investments that have already made in the development
of training, as well as pinpointing gaps where further investment may be required.
This study may conclude that dedicated training for current energy efficiency
professionals that 'bridges the gap' between traditional energy efficiency skills and new
skills like system optimisation or business transformation is requires, as was
suggested by some interviewees for this study. However development of such training
should not be undertaken prior to this detailed gap analysis.
Recommendation 5: Act to address training gaps
It is recommended that the Australian Government work with state governments,
industry bodies and training providers to coordinate an approach to addressing
identified training gaps.
Rationale
Competency gaps continue to be reported in existing and new workers. This study
suggests that the common gaps in provision of energy efficiency knowledge and skills,
including energy literacy; systems thinking; communication and the business case;
change management; integrated teams; data collection and analysis/assessment;
identify and implement opportunities; and respond to external drivers (Allen Consulting
Group, 2012, pp 69) have not been fully addressed.
In seeking to address gaps, a detailed assessment of action against the 11 integrated
recommendations made by Allan Consulting would be an important starting point.
Recommendation 6: Ensure current and emerging standards and
certifications reflect energy productivity including energy efficiency
It is recommended that a working body of relevant industry associations, standards
making bodies and certification providers is established to oversee the integration of
standardise energy efficiency and energy productivity approaches into current and
emerging standards and certifications.
Rationale
Energy productivity and energy efficiency are terms often used interchangeably, yet
they are different in definition, in measurement and in application. Energy efficiency is
a foundational energy productivity strategy. Other strategies are system optimisation,
and transformation of business models. All three determinants generate organisational
and economic value therefore contributing to an energy productivity improvement.
Consistent application of terminology and meaning through standards and
certifications would improve understanding in policy makers, service provider and
consumers of energy services.
27
Recommendation 7: Reward investment in professional development and
certification
It is recommended that all consumers of energy services give preference to those
service providers that demonstrability invest in their staff and have proven their
ability to meet the highest standards of service performance.
Rationale
The presence of gaps in the provision of energy efficiency knowledge and skills is
likely a reflection of the ‘patchy demand’ for energy efficiency related education and
training. Ultimately, it is as the labour market progressively determines that a particular
skill or domain of knowledge is valuable, and begins to demand it accordingly, that a
response from education and training providers becomes visible (Allen Consulting
Group, 2012, pp v).
There is role for all consumers of energy services to give preference to those service
providers that demonstrability invest in their staff and have proven their ability to meet
the highest standards of service performance.
In Federal, state and local governments, programs such as NSW Government
Resource Efficiency Program and the Victorian Green Government Buildings Program
are moving to professional certification as a ticket to play. However, the opportunity
extends well beyond programs such as these to general government procurement
including large public infrastructure projects and government funded programs such as
the former Energy Efficiency Information Grants program or current Sustainability
Victoria Energy Efficiency Grants program.
Introducing a requirement for professional certification, or use of certified professionals
in grant funded programs reduces the risk of poor service performance and increases
the likelihood of high quality outcomes.
Similar risk management benefits apply in the private sector and should be part of a
responsible procurement process.
Increasing demand for certified professionals would increase demand for training as
part of a professional development pathway and training providers would respond to
this demand.
28
7 References 2xEP (2016) A roadmap to double Energy Productivity in Manufacturingby 2030. Australian Alliance to Save Energy. Sydney, Australia.
2xEP (2016) A roadmap to double Energy Productivity in Passenger Transportby 2030. Australian Alliance to Save Energy. Sydney, Australia.
2xEP (2017) A roadmap to double Energy Productivity in Freight Transportby 2030. Australian Alliance to Save Energy. Sydney, Australia.
2xEP (2016) A roadmap to double Energy Productivity in Mining by 2030. Australian Alliance to Save Energy. Sydney, Australia.
2xEP (2016) A roadmap to double Energy Productivity in the Built Environment by 2030. Australian Alliance to Save Energy. Sydney, Australia.
2xEP (2016) A roadmap to double Energy Productivity in Agricultureby 2030. Australian Alliance to Save Energy. Sydney, Australia.
Allen Consulting Group and the National Centre for Sustainability (2012) Review of Energy Efficiency Skills Demands and Training Provision Across the Trades and Professions, for
the Department of Industry, Innovation, Science, Research and Tertiary Education, Melbourne
Australian Government (2010) Functional Skills for an Energy Efficiency Assessment. Commonwealth of Australia, Canberra.
ClimateWorks Australia(2015) Australia’s Energy Productivity Potential - Energy’s Growing Role in Australia’s Productivity and Competitiveness. ClimateWorks Australia, Melbourne.
Desha, C., Hargroves, K., Smith, M., Stasinopoulos, P., Stephens, R., and Hargroves, S. (2007) State of Education for Energy Efficiency in Australian Engineering Education -
Summary of Questionnaire Results, The Natural Edge Project (TNEP), Australia
Energy Efficiency Council (2017a) About Integrated Building Energy Retrofits - What is an Integrated Building Energy Retrofit? http://www.efficiencycertification.org.au/about-
ibers/stages-of-ibers
Energy Efficiency Council (2017b) About the Energy Efficiency Certification Scheme: http://www.efficiencycertification.org.au/about-the-scheme/levels-of-certfication
Energy Efficiency Council (2017c) About Integrated Building Energy Retrofits - What are the stages of an Integrated Building Energy Retrofit?
http://www.efficiencycertification.org.au/about-ibers/stages-of-ibers
Energy Efficiency Council (2016) Energy Efficiency Certification Scheme Guide for Candidates Version 1.3. Energy Efficiency Council, Melbourne, Victoria.
Fawkes, S., Oung, K., Thorpe, D., 2016. Best Practices and Case Studies for Industrial Energy Efficiency Improvement – An Introduction for Policy Makers. Copenhagen: UNEP DTU
Partnership.
GHD (2010a) Report for Long Term Strategy for the Development of Energy Efficiency Assessment Skills - Functional Skills Analysis Report. Department of Resources, Energy and
Tourism.
GHD (2010) Report for Long Term Strategy for the Development of Energy Efficiency Assessment Skills - Training Services Analysis Report. Department of Resources, Energy and
Tourism.
Global Alliance for Energy Productivity (2015) Energy Productivity Playbook – roadmaps for an energy productive future.
29
Global Superior Energy Performance Partnership (GSEP) (2013) Knowledge and Skills Needed to Implement Energy Management Systems in Industry and Commercial Buildings.
Leroi, Arnaud, Petrick, Kim and Stephenson, Bruce (2013) Helping businesses become more energy efficient - Bain Brief: http://www.bain.com/publications/articles/helping-
businesses-become-more-energy-efficient.aspx
OECD/IEA (2012) Policy pathway energy management programmes for industry. OECD/IEA and The Institute for Industrial Productivity.
OECD (2014) OECD Factbook 2014: Economic Environmental and Social Statistics.
Oliver Straehle, Kim Petrick, Fabian Stierli and Adrien Bron (2013) Why energy efficiency deserves a second look. Bain & Company, Inc.
Stadler, A., Jutsen, J., Pears, A., & Smith, M. (2014). 2xEP: Australia's energy productivity opportunity, Draft Version 1.2. Australian Alliance to Save Energy. Sydney, Australia.
The Climate Institute (2013) Boosting Australia’s Energy Productivity – Policy Brief, July 2013. The Climate Institute, Sydney, Australia
Urbis (2013) Evaluation of The Energy Efficiency Training Program Year 3 Annual Report. Prepared for the NSW Office Of Environment Heritage and NSW Department Of Education
Communities.
U.S. Department of Energy. (2015). Accelerate Energy Productivity 2030: A Strategic Roadmap for American Energy Innovation, Economic Growth, and Competitiveness. Prepared
by Keyser, D.; Mayernik, J., M.; McMillan, C. of National Renewable Energy Laboratory; Agan, J.; Kempkey, N.; Zweig, J. of U.S. Department of Energy.
Victorian Government (2017) D’Ambrosio, Lily – Media Release : Developing Skills In Energy Efficiency ( media release, 16 June 2017), http://www.premier.vic.gov.au/developing-
skills-in-energy-efficiency/
World Energy Council (2013) Energy Efficiency Technologies: Overview Report. World Energy Council. London, England.
30
8 Other sources
8.1 Formal interviews Service providers
Patrick Crittenden, Sustainable Business
Jon Jutsen, Energy Productivity Leader
Geoff Andrews, Genesis Now
Phil O’Neil, Advisian
Julian Dolby, Deloitte
Jamie Wallis, EY
Charlie Knggs, Point Advisory
Education and training
institutions/research
bodies
Cheryl Desha, Queensland University of Technology
Melissa Edwards, University of Technology Sydney/Inst for
Sustainable Futures
Gillian Gray, General Manager, Training Operations, TAFE NSW
Eli Court, Climateworks
Milou Kauffman, Innovation and Business Skills Australia
Program designers
Bradley Anderson, NSW Office of Environment and Heritage
Debbie Wielgosz, Department of State Development (SA)
Katrina Wolfe, Sustainability Victoria
Albert Dessi, Department of the Environment and Energy
Associations Scott Thach,
Zoe Lagarde, Partnership for Energy Efficiency Cooperation
Ryan Bondar, Consult Australia
8.2 Other organisations Organisation not specifically referenced or interviewed but included in desktop review
Air Conditioning and Mechanical Contractors' Association of Australia
Alliance to Save Energy (US)
Association of Energy Engineers (US)
Australian Institute of Refrigeration, Air Conditioning and Heating
Copenhagen Centre on Energy Efficiency
Engineers Australia
European Alliance to Save Energy (EU)
German Industry Initiative for Energy Efficiency (DENEFF)
Global Alliance for Energy Productivity
King Abdullah Petroleum Studies and Research Center.
Property Council of Australia
Rocky Mountain Institute (US)
Sustainable Energy for All (SE4ALL)
The Climate Group
31
8.3 Other relevant reports 2xEP/A2SE Australian Alliance for Energy Productivity (2017) 2xEP The Next Wave: Phase 1 Report.
Australian Alliance to Save Energy (2015) Unlocking Australia’s energy productivity potential – EP primer.
Climateworks ClimateWorks Australia(2015) Selling energy efficiency to senior management – workshop materials
Smith/ANU Smith, M (2015) Doubling Energy & Resource Productivity by 2030 – Improving Business Competitiveness and Profitability + Transitioning to a Low Carbon Future. ANU
Discussion Paper
Smith, M (2015) Doubling Energy & Resource Productivity by 2030 – Transitioning to a Low Carbon Future through Sustainable Energy and Resource Management. ANU
Discussion Paper
Smith, M (2015) Doubling Energy & Resource Productivity by 2030 – A “How to Guide for Policy Makers. ANU Discussion Paper
OECD/IEA OECD/IEA, 2014 Capturing the Multiple Benefitsof Energy Efficiency. International Energy Agency
UNEP United Nations Environment Programme (UNEP) (2014) Decoupling 2: technologies, opportunities and policy options. A Report of the Working Group on Decoupling to the
International Resource Panel. von Weizsa ̈cker, E.U., de Larderel, J, Hargroves, K., Hudson, C., Smith, M., Rodrigues, M
GHD GHD (2010) Report for Long Term Training Strategy for the Development of Energy Efficiency Assessment Skills, Final Report. Department of Resources, Energy and
Tourism
KAPSARC Bean, Patrick (2014) The Case for Energy Productivity: It’s not Just Semantics (KS-1402-DP01B). King Abdullah Petroleum Studies and Research Center.
KAPSARC (2015) Global shift: The energy productivity transformation (KS-1517-WB15A). King Abdullah Petroleum Studies and Research Center.
KAPSARC (2015) Energy productivity: From policy goal to reality (KS-1514-WB12A). King Abdullah Petroleum Studies and Research Center.
EEC Energy Efficiency Council (2011) Energy Efficiency in Commercial Building, Accreditation and Skills Scoping Report. Sustainability Victoria, Melbourne, Australia.
Energy Efficiency Council (2012) Proposed Accreditation Scheme for Integrated Retrofit Energy Efficiency Service Providers. Sustainability Victoria, Melbourne, Australia.
Australian
Government
Australian Government (2015b) National Energy Productivity Plan: Work Plan. Commonwealth of Australia, Canberra, Australia
32
9 Appendices
9.1 Appendix A: Knowledge and skills needed to implement energy management systems in industry and commercial buildings (Publication: GSEP, 2013, EEC analysis)
Management
skills
Financial and
accounting skills
Knowledge of
regulations,
standards, and
best practices
Energy
management
knowledge
Technical knowledge Analysis Other knowledge
and skill areas
INITIATING AN
ENERGY
MANAGEMENT
PROGRAM
Business decision-
making
fundamentals
Business
improvement skills
Organizational and
leadership skills
Financial decision-
making processes
Risk management
Economics of
energy
management
Federal, state, and
local energy
legislation and
policies
National energy
reporting systems
Federal, state, and
local green building
standards and
programs
Environmental
regulations
Energy
management
system concepts
(e.g., ISO 50001)
Energy
fundamentals
Energy metrics
Energy
measurement and
verification
techniques and
protocols
Facility and industrial
processes
Communication and
interpersonal skills
CONDUCTING AN
ENERGY REVIEW
Federal, state, and
local building
regulations and
codes
National energy
regulations and
laws
Heating,
ventilation, and air
conditioning
(HVAC) and indoor
Energy
assessment and
opportunity
identification
Assessment / audit
skills
Factors influencing
energy use or
waste
Building and facility
knowledge
Energy measurement and
verification techniques
and protocols
Building construction
techniques
Building envelope
Facility and industrial
processes
Energy mass
balance diagrams
and models
“Whole-of-systems”
analysis
Identifying “out-of-
box” solutions
Identifying significant
energy uses
33
Management
skills
Financial and
accounting skills
Knowledge of
regulations,
standards, and
best practices
Energy
management
knowledge
Technical knowledge Analysis Other knowledge
and skill areas
air quality
standards
Cost implications of
wasting energy
Building energy
rating, simulation,
and simulation
methodologies
Implementation
costs
Life cycle cost
analysis
Energy fundamentals
System optimization
fundamentals
New and existing energy-
related technologies
Operation of energy-
using equipment and
systems
Efficient use of energy in
buildings
Efficient use of energy in
processes, systems, and
equipment
Operations and
maintenance practices
and requirements
ENERGY
MANAGEMENT
PLANNING
Organizational and
leadership skills
Energy
fundamentals
Energy metrics
Energy optimization
fundamentals
Identifying “out-of-
the-box” solutions
“Whole systems”
analysis
Benchmarking
Life cycle cost
analysis
Communication and
interpersonal skills
Critical thinking
skills Renewable
energy
Combined heat and
power
IMPLEMENTING
ENERGY
MANAGEMENT
Organizational and
leadership skills
Change
management skills
Contract
management
Risk management
Economics of
energy
management
Energy
fundamentals
Energy optimization
fundamentals
Mechanical and electrical
engineering principles
Facility and industrial
processes
Communication and
interpersonal skills
Energy
procurement
34
Management
skills
Financial and
accounting skills
Knowledge of
regulations,
standards, and
best practices
Energy
management
knowledge
Technical knowledge Analysis Other knowledge
and skill areas
Financing options,
alternative
financing
Operation and
maintenance practices
and requirements
Awareness and
understanding of new and
existing
technologies
Building automation and
interoperability
Instrumentation and
controls
Commissioning principles
Recommissioning
Performance
contracting
Implementation costs
Product and service
procurement
MEASUREMENT AND
VERIFICATION
Federal, state, and
local building
regulations and
codes
National energy
regulations and
laws
Energy
measurement and
verification guides
and protocols
HVAC and indoor
air quality
standards
Energy
fundamentals
Energy optimization
fundamentals
Industry scorecards
and dashboards
Key energy
efficiency program
requirements
EnMS internal audit
components and
planning
Facility and industrial
processes
Operation and
maintenance practices
and requirements
Energy metrics
Commissioning principles
Instrumentation and
controls
MANAGEMENT
REVIEW
Organizational and
leadership skills
Energy
fundamentals
Business decision-
making
fundamentals
Communication and
interpersonal skills
35
Management
skills
Financial and
accounting skills
Knowledge of
regulations,
standards, and
best practices
Energy
management
knowledge
Technical knowledge Analysis Other knowledge
and skill areas
Change
management skills
Energy optimization
fundamentals
Industry scorecards
and dashboards
Problem-solving
skills
Risk management
skills
Business
improvement skills
Critical thinking skills
Benchmarking
36
9.2 Appendix B: Functional Skills for Energy Efficiency Assessment (GHD, 2010a, pp25)
1. Project planning and management - Ability to direct and guide a group in completing tasks and attaining goals of energy efficiency assessment:
Understand key energy efficiency program requirements and identify required human, financial and physical resources;
Develop energy efficiency assessment plan (including timelines, budgets etc) and manage project;
Project management for energy efficiency opportunity implementation - design, procurement, construction, installation and maintenance;
Facilitation and negotiation to acquire necessary human, financial and physical resources and support;
Culture and behavioural change management for ongoing energy efficiency – employee engagement and communication; and
Put together or participate in cross/multi-disciplinary teams or networks with complementary skills and perspectives.
2. Communication planning and implementation - Ability to exchange, engage, convey, and express knowledge and ideas in an energy efficiency assessment
context:
Determine project stakeholders (internal and external) and their roles in the assessment then develop and implement an effective communications and engagement plan to get their buy-in;
Reporting, documentation and presentation - Presentation of key energy and financial data and findings from energy data analysis in meaningful manner and reporting and documenting energy
efficiency assessment process;
Facilitation and management of energy efficiency opportunities identification process;
Development and management of effective plan for ongoing communication of energy use data and multiple benefits of energy efficiency opportunities to stakeholders; and
Collaborative and cultural change skills to facilitate long-term organisational behavioural change.
3. Understanding Energy Use - Ability to arrange and retrieve data, knowledge and ideas, research and investigation of specific technical and financial knowledge:
Energy and other data collection - determine, collect and manage the most appropriate energy and process related data;
Development and implementation of effective ongoing data management, tracking and reporting systems;
Energy data analysis (statistical analysis, benchmarking, energy mass balance);
Technical/engineering understanding of process or sector;
Calculate energy savings, simple payback periods, and/or other relevant financial analysis for identified opportunities20;
Non conventional financial and whole of business cost benefit analysis including environmental and social benefits;
Understanding of laws of thermodynamics, heat transfer, energy modelling and their applicability to processes and technologies in different sectors;
Undertake statistically valid representative assessments of similar energy using sites/operations/processes;
Energy mass balance diagrams (EMBs) and models, both averaged and dynamic;
37
Statistical analysis of energy and production data, including regression analysis;
Benchmarking - develop meaningful energy intensity indicators and benchmark energy and production data against historical performance, best practice and theoretical limits;
Understanding of energy markets, energy pricing and tariffs; and
Use building energy rating software and methodologies to determine energy ratings and efficiency measures for commercial/ office buildings.
4. Identifying potential opportunities - Ability to think strategically and creatively:
Whole of system and services thinking;
Ability to identify innovative “out-of-the-box” solutions including contractual, behavioural and cultural solutions;
Identification of energy efficiency opportunities, technical/engineering - understanding and analysis of process, site or sector including dynamic factors and transient behaviour of systems;
Identification of energy efficiency opportunities, behavioural - understanding and analysis of design, procurement, commissioning, operational and maintenance practices;
Undertake and apply specific techniques such as Pinch analysis, development of models and other engineering focussed process optimisation techniques; and
Identification of procedural, contractual, legal, organisational structure, job descriptions, KPIs, behaviour and other factors influencing energy use or waste;
5. Decision making – Ability to develop and assess business cases for implementation of energy efficiency opportunities:
Develop and present a business case for energy efficiency projects in a manner meaningful to all relevant levels and areas of management including senior management; and
Manage integration of energy efficiency projects and goals into cross-business operational plans, procedures and KPIs - develop systems that lead to ongoing energy efficiency assessment and
implementation.
6. Monitoring and investigation – Ability to install appropriate monitoring equipment and develop analysis systems:
Assessment, installation and use of appropriate measurement and monitoring equipment (temporary or permanent) and application of appropriate techniques for analysis, feedback provision and
system/process management based on improved access to information.
38
9.3 Appendix C: EECS assessment areas (EEC, 2016)
Area 1: Leading and managing IBERs
Ability to effectively lead and manage an IBER project in its entirety, from scoping through to completion.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Recent and relevant experience working as part of a team implementing energy efficiency retrofits
of commercial buildings;
Familiarity with key components of construction project management including scope, cost and
procurement, time, risk management, contract management, environmental management, and
occupational health and safety;
A practical appreciation of the principles, skills and techniques required for management of
Integrated Building Energy Retrofits throughout the project life cycle from inception to completion.
Recent and relevant experience leading the implementation of Integrated Building Energy Retrofits
of commercial buildings;
Familiarity with key components of construction project management including scope, cost and
procurement, time, risk management, contract management, environmental management, and
occupational health and safety;
A practical appreciation and working knowledge of the principles, skills and techniques required for
management of Integrated Building Energy Retrofits throughout the project life cycle from inception
to completion.
Area 2: Energy consumption, assessments and analysis
Understanding of energy consumption, collection, billing, modelling and analysis, and ability to oversee energy assessments and audits.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understanding of all energy uses within a commercial building, and how they relate to each other
and the building’s total energy consumption;
Ability to read and understand energy use profiles;
Ability to verify the accuracy of data presented, including from existing meters;
Can describe the steps necessary to undertake energy assessments and audits.
Understanding of all potential energy uses and emission sources within a commercial building, and
how they relate to each other and the building’s total energy consumption and emissions profile;
Understands the impact of usage trends on energy use;
Ability to read and understand energy use profiles;
Ability to verify the accuracy of data presented, including from existing meters;
Understanding of energy markets, pricing and tariffs;
Can describe the steps necessary to undertake energy assessments and audits;
Experience includes overseeing energy assessments and audits.
Area 3: Measurement and verification of energy savings
Ability to oversee a robust process for measurement and verification of energy savings.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understands the purpose and application of measurement and verification processes, standards
and protocols, including the International Performance Measurement and Verification Protocol
(IPMVP);
Can describe how to design measurement and verification processes that are relevant to the project
and scope of works being delivered.
Understands the purpose and application of measurement and verification processes, standards and
protocols, including the International Performance Measurement and Verification Protocol (IPMVP);
Ability to design measurement and verification processes that are appropriate for the scope of
particular projects.
39
Area 4: Business case development and project justification
Ability to undertake cost benefit analyses and develop business cases
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Awareness of different cost benefit analysis methodologies, and ability to identify which is best
suited to a particular project or client.
Understands need for effective business cases to incorporate both financial and non-financial
benefits;
Detailed understanding of different cost benefit analysis methodologies and benefits and limitations
of each;
Demonstrates the ability to develop effective business cases that incorporate both financial and non-
financial benefits;
Understanding of options for securing project finance, and an appreciation of an IBER's impact on
the client's key accounting indicators.
Demonstrates ability to use appropriate cost/benefit analysis to suit particular client requirements.
Area 5: Client procurement options for IBERs
Ability to advise clients on the procurement models available, and the most appropriate model for a given project.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understanding of the various procurement models that can be utilised on IBER projects (i.e. design,
specify, tender; Energy Performance Contracts etc.);
Ability to identify the advantages and disadvantages associated with different procurement
pathways in relation to a particular project.
Understanding of the various procurement models that can be utilised on IBER projects (i.e. design,
specify, tender; Energy Performance Contracts etc.);
Ability to identify the advantages and disadvantages associated with different procurement pathways
in relation to a particular project;
Familiarity with the local supplier market for IBER projects, the services provided by various
specialists, and how this impacts on the appropriate model for a given project.
Area 6: Interdependencies between building systems and managing operational impacts
Ability to ensure integration between building systems whilst managing the operational impact of an IBER.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understands how project design influences interactions between existing systems and new
systems, and the importance of all systems working together for an effective overall outcome.
Understands how to effectively manage the impact that implementation has on the ongoing
operation of the facility.
Understands the importance service providers work together effectively to minimise operational
impacts and ensure efficient operation.
Able to consider how a specific project design influences interactions between existing systems and
new systems, and ensure that all systems will work together for an effective overall outcome.
Able to consider the project from a broader systems perspective that includes materials and
products, building structure, enclosure and building services.
Able to effectively manage the impact that implementation has on the ongoing operation of the
facility.
Able to ensure service providers work together effectively to minimise operational impacts and
ensure efficient operation.
Area 7: Energy efficiency and generation technologies
Understanding of energy efficiency and generation technologies, systems and processes
40
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understands technologies available to reduce demand for energy (and where appropriate, generate
energy).
Understands how to deploy technologies appropriately while maintaining or improving functional
capabilities of the building (within the context of a particular project, taking into consideration
commercial building type, scope of work and client requirements);
Understands the opportunities associated with addressing control strategies.
Appreciation for which systems are typically used in different commercial building types.
Understands technologies available to reduce demand for energy (and where appropriate, generate
energy).
Understands how to deploy technologies appropriately while maintaining or improving functional
capabilities of the building (within the context of a particular project, taking into consideration
commercial building type, scope of work and client requirements);
Detailed knowledge of the opportunities associated with addressing control strategies.
Understands which technologies are typically used in different commercial building types.
Area 8: Commissioning and tuning
Ability to ensure equipment is appropriately commissioned and tuned.
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Understanding of commissioning standards and processes necessary for successful
commissioning.
Understands the need to ensure equipment has been commissioned correctly and tuned in place.
Understands the difference between defects rectification, maintenance and building system tuning.
Understanding of commissioning standards and processes necessary for successful commissioning.
Understands the need to ensure equipment has been commissioned correctly and tuned in place,
and how this should be done;
Understands the difference between defects rectification, maintenance and building system tuning;
Understands the opportunities available through adjusting set points and controls during the tuning
process.
Area 9: Risk management
Ability to effectively manage the risks associated with an IBER
Required skills and knowledge - CEES Required skills and knowledge - CEEL
A working knowledge of the principles and techniques of risk management of energy efficiency
retrofits of commercial buildings;
Can describe the key components of construction / retrofit project risk management.
Appreciation of the need to manage risk associated with the client's existing systems and
processes.
A practical appreciation and working knowledge of the principles and techniques of risk
management of energy efficiency retrofits of commercial buildings;
Can describe the key components of construction / retrofit project risk management;
Demonstrates the ability to identify and manage risk associated with the client's existing systems,
processes and other client organisational risks.
Ability to run an effective risk identification process.
Area 10: Stakeholder engagement
Ability to effectively manage the stakeholders associated with an IBER
Required skills and knowledge - CEES Required skills and knowledge - CEEL
Sound communication skills;
Understands the principles of stakeholder engagement and consultation;
Sound communication skills;
Understands the principles of stakeholder engagement and consultation;
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Understands how a detailed communications plan can be used to facilitate improved project
outcomes;
Able to identify the key stakeholders involved in an IBER project.
Understands how a detailed communications plan can be used to facilitate improved project
outcomes;
Able to identify the key stakeholders involved in an IBER project;
Understands and can effectively manage the relationship dynamics between different stakeholder
groups.
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9.4 Appendix D: Training resources Postgraduate
Graduate Certificate in Carbon Management, Bond University
Graduate Certificate in Energy and Resources - Policy and Practice, University College London
Graduate Certificate in Energy Studies, Murdoch University
Graduate Certificate in Lighting (on-shore), Queensland University of Technology
Graduate Certificate in Mineral and Energy Economics, Curtin University
Graduate Certificate in Renewable Energy and Power Systems, University of Tasmania
Graduate Certificate in Sustainable Energy, University of Queensland
Graduate Certificate in Urban Development and Sustainability, Bond University
Graduate Diploma of Energy and Resources - Policy and Practice, University College London
Graduate Diploma of Energy and Resources Law, University of Melbourne
Graduate Diploma of Energy and the Environment, Murdoch University
Graduate Diploma of Energy Law, University of Western Australia
Graduate Diploma of Energy Studies, Murdoch University
Graduate Diploma of Sustainable Energy, University of Queensland
Master of Asset & Facilities Management, Bond University
Master of Carbon and Energy Management, University of Queensland
Master of Climate Change, Australian National University
Master of Electronic and Computer Engineering / Master of Electronic and Energy Engineering, Griffith University
Master of Energy and Resources Law, University of Melbourne
Master of Energy Change (Advanced), Australian National University ANU
Master of Energy Efficient and Sustainable Building, RMIT University
Master of Energy Systems, University of Melbourne
Master of Engineering - Sustainable Energy, RMIT University
Master of Engineering (Energy and Sustainable Systems), University of South Australia
Master of Engineering in Renewable Energy, Australian National University ANU
Master of Engineering, Deakin University
Master of Environment, Australian National University
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Master of Environment, Macquarie University
Master of Environmental Law, Macquarie University
Master of Environmental Planning, Macquarie University
Master of Laws, Macquarie University
Master of Mining and Energy Laws, University of Western Australia
Master of Renewable Energy, Murdoch University
Master of Science - Mineral and Energy Economics, Curtin University
Master of Science in Energy and Resources Management, University College London
Master of Science in Renewable Energy, Murdoch University
Master of Sustainable Energy, University of Queensland
Master of Urban and Regional Planning, University of South Australia
Postgraduate Diploma in Asset & Facilities Management, Bond University
Postgraduate Diploma in Energy and the Environment, Murdoch University
Postgraduate Diploma in Energy Studies, Murdoch University
Postgraduate Diploma of Energy and Environment - Global Warming and Climate Science, Open Universities Australia (OUA)
Postgraduate Diploma of Energy Studies, Open Universities Australia (OUA)
Undergraduate
Bachelor of Agricultural Science, University of Tasmania
Bachelor of Applied Science (Agriculture), University of Tasmania
Bachelor of Civil Engineering, La Trobe University
Bachelor of Construction Management, University of Western Sydney
Bachelor of Engineering - Electrical and Electronics, Deakin University
Bachelor of Engineering - Electrical and Renewable Energy (Honours), Edith Cowan University (ECU)
Bachelor of Engineering - Mechanical and Sustainable Energy (Honours), University of Adelaide
Bachelor of Engineering - Photovoltaics and Solar Energy (Honours), UNSW Sydney
Bachelor of Engineering - Renewable Energy Engineering (Honours), Murdoch University
Bachelor of Engineering (Advanced Studies - Sustainable Energy Systems Engineering), Griffith University
Bachelor of Engineering (Environmental Engineering)/Bachelor of Business Management, Griffith University
Bachelor of Engineering (Mechatronics), Edith Cowan University
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Bachelor of Engineering (Optical and Electronic), University of South Australia
Bachelor of Engineering (Sustainable Energy Systems), Griffith University
Bachelor of Engineering in Renewable Energy Engineering, Murdoch University
Bachelor of Engineering, Curtin University
Bachelor of Environmental Science (Sustainability Science), Bond University
Bachelor of Environmental Science, Charles Sturt University
Bachelor of Housing, University of Western Sydney
Bachelor of International Relations, La Trobe University
Bachelor of Natural Science, University of Western Sydney
Bachelor of Planning, Macquarie University
Bachelor of Science - Energy and Advanced Materials, Flinders University
Bachelor of Science - Energy Geoscience, University of Adelaide
Bachelor of Science in Climate Change Management, Murdoch University
Bachelor of Science in Sustainable Energy Management, Murdoch University
Bachelor of Technology - Renewable Energy Systems, University of Newcastle
Vocational
Advanced Diploma of Engineering Technology - Renewable Energy
Advanced Diploma of Renewable Energy Engineering
Associate Degree in Applied Engineering - Renewable Energy Technologies, TAFE NSW
Certificate II in Sustainable Energy (Career Start)
Certificate III in Renewable Energy - ELV
Certificate IV in Air-conditioning Systems Energy Management and Control
Certificate IV in Electrical - Renewable Energy
Certificate IV in Energy Efficiency and Assessment
Certificate IV in Energy Management and Control
Certificate IV in Renewable Energy
Certificate IV in Sustainable Operations
Diploma of Carbon Management, Swinburne University of Technology
Diploma of Renewable Energy Engineering
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Diploma of Residential Building Energy Assessment
Diploma of Sustainability, TAFE NSW
Diploma of Sustainability, Tropical North Queensland TAFE
Diploma of Sustainable Operations
Graduate Certificate in Education and Training for Sustainability, TAFE NSW
Graduate Certificate in Sustainable Operations
Other short courses
Education and Training at the National Centre for Sustainability, Swinburne University of Technology
Efficiency in the Water Sector, University of New South Wales
Electrical Power Management and Sustainability, Federation University Australia
Energy Storage and Alternative Generation, University of New South Wales
Home Sustainability Assessment, Federation University Australia
Home Sustainability Assessment, Victoria University
Integrated Design Studio for High Performance Buildings, University of New South Wales
Introduction to Carbon Accounting, Federation University Australia
Introduction to Climate Change, Federation University Australia
Introduction to Sustainability at Work, Federation University Australia
Introduction to Sustainable Living, Federation University Australia
Operational Energy Efficiency, University of New South Wales
Sustainable Energy Centre, University of South Australia
Sustainable Energy Policy and Practice, RMIT University
Understanding Your Ecological Footprint, Federation University Australia