Opportunities in the electrification transition Presentation for REROC energy conference Jay Gordon, Energy Finance Analyst 28 August 2024 The efficient electrification opportunity www.ieefa.org 2 Many households continue to rely on inefficient appliances Image: Miele Image: Bonaire Image: Rinnai Image: Bosch Image: Rinnai Source: IEEFA analysis of sources from EnergyConsult 2021. [...] www.ieefa.org 4 . [...] www.ieefa.org 5 . [...] Source: Australian Energy Statistics – Table H *Excludes gas consumed in gas extractive processes www.ieefa.org 8 How do the alternatives compare? Green hydrogen: Cost-effective for iron, ammonia production Expe. [...] www.ieefa.org 16 How can governments support consumers? Supporting • Minimum rental standards renters • Incentives for rental providers Removing upfront cost hurdles • Well-designed financing options Supporting better • Updated appliance standards appliance choices • Updated appliance labelling Managing gas • Capping future growth of gas networks stranded asset risks • Gas network phase-down plan.
- Pages
- 18
- Published in
- United States of America
Table of Contents
- Opportunities in the electrification transition 1
- Presentation for REROC energy conference 1
- The efficient electrification opportunity 2
- Many households continue to rely on inefficient appliances 3
- Efficient electric appliances consume a fraction of the energy of inefficient appliances 4
- What would happen if all new appliances were efficient and electric 5
- Efficient electrification would support energy security emissions objectives 6
- Electricity demand in most regions could be reduced 7
- More electrification opportunities likely exist in commercial and industrial sectors 8
- How do the alternatives compare 9
- Green hydrogen 9
- Biomethane 9
- The benefits of electrification stack with other measures 10
- Flexible electrification of hot water can reduce household energy costs and overall system costs 10
- Households with rooftop solar can get greater value from their system. 10
- Upgrading a homes thermal efficiency reduces energy consumption even further. 10
- Electrification and gas networks 11
- Gas distribution networks are exposed to stranded asset risks 12
- Who pays for stranded assets 13
- Accelerated depreciation 13
- Revenue caps and hybrids 13
- Have gas networks already been compensated for demand risks 14
- What does it all mean for consumers 15
- Efficient electric appliances are the most cost-effective option for consumers 16
- Alternatives like hydrogen and biomethane renewable gas are unlikely to play a role in homes 16
- Consumers have paid more than necessary to access gas networks and could be exposed to more risk unless regulatory actions are taken. 16
- Consumer takeaways 16
- How can governments support consumers 17
- Supporting renters 17
- Removing upfront cost hurdles 17
- Supporting better appliance choices 17
- Managing gas stranded asset risks 17
- Minimum rental standards Incentives for rental providers 17
- Well-designed financing options 17
- Updated appliance standards Updated appliance labelling 17
- Capping future growth of gas networks Gas network phase-down plan to mitigate 17
- Thank you 18
