Energy efficiency is a critical solution to the energy crisis
The energy crisis is all over the news as households experience a rapid rise in electricity bills. In this post, we explain what is causing the price hikes and how energy efficiency could be the solution to help the average households reduce their bills and save.
What is causing electricity price hikes?
1) The war between Ukraine and Russia
The sanction of Russian energy has caused a supply shortage globally. Australia’s electricity generation heavily relies on non-renewables, with as much as two-thirds of our power generation derived from coal and gas. While Australia mines a lot of coal and gas, we also export most of it overseas forcing us to compete with global markets.
2) Unplanned outages at coal and gas plants
Many of Australia’s coal power generators are ageing, which means they fail more often. At present, nearly 25% of our coal generation is offline. This has created a shortfall in electricity generation, forcing some energy generators to switch to gas-powered generation. The shrinking supply of coal and gas has made power generation in Australia less reliable and more expensive, pushing the wholesale electricity price higher.
3) Extreme weather conditions
Flooding events in NSW and QLD have created a flow-on effect on coal production. Additionally, the early arrival of winter also caused a spike in electricity demand, with households turning up their heater dials, causing shortfalls in an already tight electricity pool.
Will electricity increase continue?
Many industry groups are warning us to expect our electricity bills to double. The Australian Energy Regulator confirms that wholesale price power will likely remain high for at least 2 years. From 1 July 2022, the default offer or the maximum price retailers can charge their customers will rise by 14% in NSW, 11% in QLD and 7% in SA. The Essential services commission determines the default offer in VIC and sets the cap at 5%. Source
What can you do about rising power bills?
The IEA (International Energy Agency) regards energy efficiency as the first fuel of a sustainable global energy system. IEA Executive Director Faith Birol said, “Energy efficiency is a critical solution to so many of the world’s most urgent challenges – it can simultaneously make our energy supplies more affordable, more secure and more sustainable.”
The IEA report on energy efficiency identified efficiency measures such as electrification of cars and trucks, and deployment of more energy-efficient equipment in buildings such as air conditioners could reduce one-third of the world’s energy demand by 2030. Other energy savings could be achieved with digitisation through the adoption of smart controls and providing people with information to help people make more efficient choices in what they buy and how they use energy.
How emerald’s Electricity Advisor and Electricity Management System can help?
The Electricity Advisor connects directly to a customer’s smart meter, sending data directly to the emerald EMS app. The emerald EMS app recognises peak usage electricity periods, displaying real-time and historical electricity data with budget-setting energy targets to help customers stay on track with their electricity usage
An emerald EMS customer recently highlighted significant savings in his electricity bill after identifying a faulty timer regulating his pool pump, resulting in the pump running longer and activating at peak electricity usage periods. When the customer recognised an unusual spike in his electricity use via the emerald EMS app, he was able to track and identify the failing timer and rectify the issue, saving money and weeks of wasted electricity usage.
Open your emerald EMS app now for more tips on energy savings tips from cooking, laundry, lighting, refrigeration as well as heating and cooling.
If you have been one of the thousands of people benefiting from emerald’s Electricity Advisor and emerald EMS app and have a story of how emerald has helped you save money, we would love to hear from you either on Facebook, Instagram or by email