Australia’s energy policy has focused heavily on renewables, but experts warn this has led to the neglect of energy productivity as a powerful tool to cut emissions and save money.
As the country approaches a national summit on productivity, the link between energy use and economic output is coming into sharper focus.
Despite rapid growth in renewable electricity, renewables accounted for just 10% of Australia’s total primary energy in 2022–23, according to Australian Energy Statistics.
Energy productivity - often described as ‘energy efficiency’ by authorities such as the IEA, the International Energy Agency - has played a major role in reducing both energy use and emissions, but is under-recognised.
“Improved energy productivity has had a major impact on energy and emissions,” the government’s 2024 Energy Update report notes.
Behind-the-meter rooftop solar is also counted as reduced energy demand, not as added renewable supply, slightly distorting the full picture of renewable energy contributions.
While economic structural changes do affect energy use, data suggests these have had only a modest influence on the overall improvement in energy productivity since 2007.
All sectors of the economy, including mining and commercial services, have significantly reduced energy intensity, and electricity generation has become markedly more efficient.
The analysis concludes that energy productivity could be a “superhero” of the energy transition — if only it were given the same policy attention as solar and wind.