Acknowledgement
This publication was funded under the National Strategy for Energy Efficiency and is a joint initiative of
Australian State and Territory Governments. The publication should be attributed to the National Centre for
Sustainability, Swinburne University of Technology.
The National Centre for Sustainability, Swinburne University of Technology would like to acknowledge the
NFEE Training Committee and industry contributions during the development of this publication.
Cover Design by Zach Bresnahan
Instructional Design and Diagrams by Justin Yong
© Sustainability Victoria 2012
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THE ENERGY HANDBOOK 2012
Contents
Why an Energy Handbook? .............................................................................................................. 1
Introduction .................................................................................................................................. 1
What is energy? ................................................................................................................................ 2
What are the current energy sources?............................................................................................. 2
What type of energy is available? .................................................................................................... 6
Electrical energy ........................................................................................................................... 6
Transport energy .......................................................................................................................... 8
Renewable energy ........................................................................................................................ 8
Understanding the cost of energy use ........................................................................................... 10
Energy use and greenhouse gases ............................................................................................. 12
How do you use energy? ................................................................................................................ 16
Energy conversion and transmissions ........................................................................................ 16
Calculating electrical power ................................................................................................... 20
Calculating energy .................................................................................................................. 20
Converting Wh to kWh ........................................................................................................... 21
Comparing energy consumption ............................................................................................ 21
What is energy management? ....................................................................................................... 22
Measuring energy use ................................................................................................................ 22
Supply-side management ....................................................................................................... 23
Demand-side management .................................................................................................... 23
What is energy efficiency? ............................................................................................................. 26
What is an energy rating? .......................................................................................................... 27
1 THE ENERGY HANDBOOK 2012
Why an Energy Handbook?
Introduction
This handbook aims to engage individuals in developing an understanding of energy to solve a
variety of challenges and develop opportunities related to energy conservation and efficiency at
home and in the workplace. Energy is not a new concept, but progressively more educators,
industry workers and community members are requiring an understanding of energy and a
greater level of energy literacy to engage in daily activities at home, in the wider community and
in the work place - irrespective of the industry sector. Energy literacy supports an understanding
of the role of energy in daily life and the implication for energy use in achieving a sustainable
energy future.
Energy literacy is an understanding of the essential aspects of energy, such as
energy sources and impacts,
energy conversion,
energy management,
measuring energy use and
energy efficiency.
Energy literacy is important at an individual level and for our society, given an understanding of
energy promotes:
Informed decision making;
Reduced costs;
Reduced economic, social and environmental risks and impacts;
Transition to a lower carbon economy through sustainable economic development; and
Energy independence.
An energy literate person will be able to:
Determine how energy is sourced;
Understand energy conversion and distribution;
Make informed decisions based on an understanding of energy use and impacts;
Determine how much energy is used over a determined time;
Identify ways to use energy more efficiently; and
Communicate about energy use and efficiency.
2 THE ENERGY HANDBOOK 2012
What is energy?
Energy is defined as the potential to do work or transfer heat. Kinetic energy is the energy of
motion. For example, the energy a cyclist uses to pedal a bike is turned into kinetic energy.
Potential energy is energy stored for later use. For example, water in a dam is potential energy
used to generate electricity through a hydro plant. Energy is governed by a number of laws.
Energy Laws:
Law of conservation of energy: Energy cannot be created nor destroyed. For example,
the electrical energy used to turn on a light globe doesn’t get used up, but is converted
into both light and heat energy. Only the light is useful, therefore the heat released is
‘wasted’ energy given it is not being used.
Entropy: The usefulness or quality of energy decreases as energy changes forms thus
making it less useful. For example, most of the heat energy from an electric kettle is lost
to the surrounding air and water and cannot be recaptured for any useful purpose.
This section explores some of the many forms of energy, including:
Electrical energy, the energy transmitted through electrical wires.
Electromagnetic energy which includes micro-waves, frequency signals or infra-red heat.
Thermal energy is the heat energy in the form of a solid, liquid or gas.
Mechanical energy which is the energy of movement, and can either be stored or potential energy.
Chemical energy, the energy released from stored energy in fossil fuels or biomass from both living and non-living organisms.
Nuclear energy, the energy released from the nuclei of atoms or a nuclear reaction.
Gravitational energy which includes unrestricted potential energy, like water in a dam or tidal energy.
What are the current energy sources?
We extract and harness energy from the natural world in many forms, from both renewable and
non-renewable sources. Depending on the user’s requirements, energy can be sourced from
many forms, although efficiency can be gained by selecting the most appropriate energy for a
specific task.
3 THE ENERGY HANDBOOK 2012
Image 1: Example energy sources
Non-renewable energy resources are finite; they will eventually be exhausted and not
replenished within a human timescale. Non-renewable resources are formed over millions or
billions of years, and include fossil fuels (gas, oil and coal), and nuclear fuels.
Renewable energy sources are naturally replenished in a relatively short time, which makes
them essentially inexhaustible. Renewable energy sources include the sun, wind, rain, ocean
tides, geothermal and biomass, as well as the food we grow and eat.
The Australian Department of Resources, Energy and Tourism (DRET) and the Bureau of
Resources and Energy Economics (BREE) produce an annual report ‘Energy in Australia’ to
support an understanding of our current energy usage and the direction the country is headed
to support our energy future. The current publication describes Australia’s primary energy
supply by type as shown in Figure 1: Australia’s total primary energy supply, by energy type.
Non-renewable “Black and brown coal account for the greatest share of the energy mix in
Australia, at 37 per cent, followed by petroleum products (35 per cent). The share of gas in
Australian energy consumption has increased over the past 30 years and currently stands at 23
per cent. The share of renewables in Australia’s total energy mix has remained largely constant
at around 5 per cent over the last decade.”i
4 THE ENERGY HANDBOOK 2012
Figure 1: Australia’s total primary energy supply, by energy type ii
When energy is collected, at the initial stage, it is called primary energy or the energy input into
a system. Examples of primary energy for electricity production are coal (lignite) or water for
hydro. The energy used by appliances, lighting and machinery are outputs or end-use energy.
BREE identifies and analyses trends of energy consumption, intensity and underlying factors
across six industry sectors as shown in Figure 2: Scope of the BREE Report ‘Economic Analysis of
End-use Energy Intensity in Australia’. In this report from 2012, BREE identified the following
primary energy supply, conversion and end use by sector. Energy is converted from one form to
another through conversion for end use.
5 THE ENERGY HANDBOOK 2012
Figure 2: Scope of the BREE Report ‘Economic Analysis of End-use Energy Intensity in
Australia’iii
Primary
Energy Supply
Energy
Conservation
Energy end-uses sectors
Manufacturing (10 sub sectors)
Services ( sub sectors)
Mining
Agriculture
Transport
Passenger
- Motor vehicles (cars, motorcycles, buses)
- Rail (heavy rail, light rail)
- Shipping (ferries and costal)
- Air (domestic aviation)
Freight
- Motor vehicles
- Rail
- Shipping
- Air
Residential
- Space heating
- Space cooling
- Water heating
- Cooking
- Lighting
- Appliances (10 Appliances)
Coal mine
(Coal)
Electrical
generation
Oil Well
(Crude oil)
Petroleum
refining
Natural
Gas
Primary
energy
Natural gas
processing
Final
energy
Renewable
Coke &
briquettes
manufacturing
Replicated image from BREE Economic analysis of end-use energy intensity in Australia 2012,
Commonwealth
Note: Sectors covered in this report. Production of liquefied natural gas is included in the mining sector. Consumption
of coal and liquid fuels are not covered in the residential sector
6 THE ENERGY HANDBOOK 2012
What type of energy is available?
The energy sources discussed in the previous section are generally not useful in their raw forms. Therefore, energy sources must be changed through conversion into a more useful form, for example wind is more useful when a sail is used to capture it to move a sail boat for transportation. A more complex example is when wind causes blades to move on a wind turbine to generate electricity for a range of end uses. When primary energy sources are converted, the useable energy is reduced during the conversion process.
Energy is transformed to support our homes, offices and industries for everyday living. In Australia our raw energy sources are most commonly transformed for use into electricity and transport fuels. “Australia’s [total] energy consumption is primarily composed of non-renewable energy sources (coal, oil and gas), which represent 95 per cent of total energy consumption. Renewables, mainly bioenergy (wood and wood waste, biomass and biogas), account for the remaining 5 per cent.”iv Figure 3: Total primary energy supply, by state, by energy type, 2009–10 identifies the primary energy supply by state and type for comparison across Australia.
Figure 3: Total primary energy supply, by state, by energy type, 2009–10v
State/Terr Coal
Petroleum
products Gas Renewablesa Totalb
PJ PJ PJ PJ PJ
NSW 791 613 159 63 1 648
Vic 691 422 263 44 1 406
Qld 544 477 199 104 1 301
WA 117 327 566 14 1 026
SA 78 112 133 12 348
Tas 8 38 14 31 110
NT 0 68 38 0 107
Total 2 229 2 058 1 371 286 5 945
Share of total
37.5% 34.6% 23.1% 4.8% 100.0%
Source: ABARES 2011, Australian Energy Statistics.
a State renewables data only includes hydroelectricity, solar hot water, biomass and biogas. It does not
include wind or solar PV but these are included in the total.
b Includes wind and solar PV. Totals may not add due to rounding.
Electrical energy
In Australia, electricity is supplied by both renewable and non-renewable resources. Figure 4
below shows that “most of Australia’s electricity is produced using coal, which accounted for 75
per cent of total electricity generation in 2009–10. This is because coal is a relatively low cost
energy source in Australia. It also reflects the abundance of coal reserves along the eastern
seaboard, where the majority of electricity is generated and consumed. Gas is Australia’s second
largest energy source for electricity generation, accounting for 15 per cent of electricity
7 THE ENERGY HANDBOOK 2012
generation in 2009–10. Renewable energy sources, mainly hydroelectricity, wind and bioenergy,
accounted for around 8 per cent of the electricity generation mix in 2009–10.”vi
Figure 4: Australia’s electricity generation, by energy source, 2009–10avii
a Other includes oil, bioenergy and solar PV. Source: ABARES 2011, Australian Energy Statistics, Table O.
During the production of electricity from coal (primary energy), a chemical energy is produced
releasing heat, this is called thermal energy. This heat or thermal energy generates steam which
drives a turbine, and in turn creates mechanical energy, which turns a generator, thus creating
electricity or electrical energy (end use energy).
At each of these conversions useful energy is lost, but not destroyed, to the environment.. An
overview of the coal electricity generation process is shown in Image 3.
Image 3: Overview of coal electricity generation
8 THE ENERGY HANDBOOK 2012
Transport energy
A fuel is generally a source of energy burned through a combustion process to produce heat,
mainly through use of refined petroleum products, although ethanol and biofuels are also
available in Australia. Energy in Australia 2012 states that, “The transport sector is the largest
end user of energy in Australia. More than 38 per cent of Australia’s final energy use is employed
in moving people and goods across the country. As a large continent characterised by major
population centres located along its coastline, Australia requires goods to be transported long
distances. The transportation sector is the largest consumer of liquid fuels (including LPG and
refined products), accounting for 73 per cent of Australia’s final use of liquid fuels… Within the
transport sector, road transport is the largest user of final energy, accounting for 76 per cent of
the sector’s liquid fuel consumption.”viii
Renewable energy
Australia’s current renewable solar energy market and incentives are described in BREE’s Energy
in Australia 2012 report as ‘Clean Energy’. “Currently, around 67 per cent of Australia’s
renewable energy is comprised of biomass... Hydro power for electricity generation makes up 16
per cent of renewables consumption, with the remaining 17 per cent comprising biofuels, wind
and solar energy consumption.”ix
BREE describes the constraint of current clean energy technologies, being:
higher transformation costs relative to other energy technologies
often long distances from existing transmission and distribution infrastructure and markets; and
current technologies used to utilise them are often immature.
9 THE ENERGY HANDBOOK 2012
The BREE report explains:
“despite these constraints, clean energy technologies will play an important role in moving to a low
emissions future while meeting Australia’s continued demand for energy….Clean energy sources
currently used in Australia include hydro, biomass, biogas, wind energy, and solar energy. There is also
potential for a number of emerging clean energy technologies that are yet to be commercially
deployed, including large scale solar energy plants, geothermal generation technologies, ocean energy
technologies, and carbon capture and storage (CCS) to reduce emissions from coal, oil and gas use.
The distribution of clean energy production facilities in Australia reflects the climatic characteristics of
different regions. Hydroelectricity capacity in Australia is located mostly in New South Wales,
Tasmania, Queensland and Victoria; while wind farms are most abundant in South Australia and
Victoria. Almost all bagasse-powered energy facilities are located in Queensland where sugarcane
production is located. In contrast, there is a more even distribution of biogas-powered facilities across
Australia, as these facilities are mostly based on gas generated from landfill and sewerage.”x
An overview of the mix and location of clean energy across Australia is shown in Figure 5.
Figure 5: Renewable energy generators operating plants with capacity of more than 30
kilowattsxi
Source: Geoscience Australia.
10 THE ENERGY HANDBOOK 2012
The Australian Government is encouraging the uptake of clean energy technologies through the
following incentives and measures:
Expansion of the Renewable Energy Target (RET) (Jan 2010) will ensure that 45,000 gigawatt hours of Australia’s electricity supply will be sourced from renewable energy by 2020
Solar Credits Scheme
The Clean Energy Future Plan (Nov 2011) targets the reduction of Australia’s carbon emissions to 5 percent below 2000 levels by 2020 and 80 per cent below 2000 levels by 2050
Introduction of a carbon price and package of complementary measures (Jul 2012)
Establishment of the Australian Renewable Energy Agency (ARENA) (Jul 2012) which will support funding and knowledge sharing for innovation related to renewable energy technologies.xii
Australia’s future renewable energy market has been researched by the University of Melbourne’s Energy Research Institute and reported in the ‘Australian Sustainable Energy: Zero Carbon Australia Stationary Energy Plan’. The Zero Carbon Australia 2020 Plan (ZCA2020 Plan) is a ten year plan outlining the current opportunities for Australia to enter a 100% renewable energy market consisting of the following technologies.
“Technologies that were chosen for the ZCA2020 Plan:
can supply the required 325 TWh/yr with the flexibility to meet seasonal and daily variation in demand;
are commercially available today;
produce zero greenhouse emissions after construction;
The chosen renewable energy technologies are a mix of wind turbines, concentrating solar
thermal with storage, small-scale solar, and contingency capacity from biomass and existing
hydroelectricity”.xiii
Understanding the cost of energy use
The section explores the cost of energy use associated with the natural environment, our society
(local and global communities) and our economy. Our society is dependent on energy and rising
electricity and fuel prices are increasing costs across our economy. BREE states that “the price of
electricity is determined by a number of factors such as transmission and distribution network
costs, the wholesale electricity price faced by retailers, and government policies. Recently, a
major driver of rising retail electricity prices has been the significant investment in new and
ageing transmission and distribution infrastructure required to support increasing demand for
electricity. The Australian Energy Market Commission estimates that transmission and
distribution network costs represented between 44 to 53 per cent of the retail electricity price
faced by households in 2009–10, with wholesale electricity prices representing a further 35 to 40
per cent.”xiv
The following table explores the cost of energy use on our environment, society and economy.
These costs vary dependant on the energy source as briefly described in Figure 6.
11 THE ENERGY HANDBOOK 2012
Figure 6: Energy sources and associated impacts
Type of energy
Opportunities Impacts
Hydro (Renewable)
Electricity
Thermal storage
Potential disturbance of land, environment and habitat.
Potential benefit to community and individual health and liveability, energy independence, increases in jobs, reduced operational costs.
Flexibility of system for quick response time to support peaks in electricity demand
Wind (Renewable)
Electricity
Thermal storage
Aesthetics, potential noise and land and habitat disturbance.
Potential benefit to community and individual health and liveability.
Energy independence, increases in jobs, reduced operational and infrastructure investment costs.
Bioenergy (Renewable)
Biofuels for transport
Biomass electricity
Potential air and land pollution due to burning of biomass, deforestation, environmental and habitat disturbance/reduction.
Potential benefit to community and individual health and liveability.
Energy independence, increases in jobs, reduced operational costs.
Solar Photovoltaic (Renewable)
Electricity Aesthetics and potential for technology waste disposal / recovery.
Potential benefit to community and individual health and liveability.
Energy independence, increases in jobs, reduced operational and infrastructure investment costs.
Solar Thermal (Renewable)
Thermal storage
Aesthetics and potential land disturbance/reduction.
Potential benefit to community and individual health and liveability.
Energy independence, increases in jobs, reduced operational and infrastructure investment costs.
Tidal and wave energy (Renewable)
Electricity Aesthetics, and potential land and habitat disturbance.
Potential benefit to community and individual health and liveability
Energy independence, increases in jobs, reduced operational costs.
Heat from the earth (Non-renewable*)
Thermal energy
Electricity * Over a long period (thousands of years), geothermal energy could be depleted.
Potential disturbance or pollution to local soil, ground water.
Potential benefit to community and individual health and liveability
Energy independence, increases in jobs, reduced operational costs.
Coal Australia has large Pollution and disturbance to the local and
12 THE ENERGY HANDBOOK 2012
Gas Oil (Non-renewable)
coal and gas reserves but finite resources (fossil fuels)
Fuel for transport
Electricity
broader communities, including land, water, habitat, air, greenhouse gases, and noise as a result of extraction, spills, leakage, use and transport).
Elimination of resources.
Potential health related issues to both workers and the local community.
Uranium (Non-renewable)
Australia has large reserves of Uranium but finite resources
Nuclear Energy
Electricity
Transport
High pollution potential to all living things.
Related impacts (social, political, economic and health related) to the local and broader communities
Elimination of resources.
Pollution and disturbance to the local and broader communities, including land, water, habitat, air, greenhouse gases, and noise as a result of extraction, spills, leakage, use and transport).
Energy use and greenhouse gases
Greenhouse gases (GHG) naturally occur in the earth’s atmosphere. The earth’s atmosphere
requires a balance of heat absorption from the sun and heat released back into outer space as
part of the Earth’s energy balance and to maintain life as we know it as depicted in Image 4.
Image 4: Overview of the greenhouse effect
13 THE ENERGY HANDBOOK 2012
Greenhouse gases include naturally derived gases, being water vapour and ozone which have
the ability to trap heat. The burning of fossil fuels and other human activity has led to increases
in other greenhouse gases, such as carbon dioxide, methane, nitrous oxide, chlorofluorocarbons
(CFCs) and some other gases contributing to the enhanced greenhouse effect in the atmosphere.
Human induced greenhouse gases have progressively increased in the earth’s atmosphere, as
shown in Image 5, most often through burning of wood, burning of coal for electricity, natural
gas, transport fuels, livestock (belches and wind), the breakdown of landfill waste (methane),
refrigerant use (some gases used for heating and cooling), cement production, agriculture
(fertilizer), industrial processes (nylon for fabrics), etc.
Image 5: Overview of greenhouse gases
As a result of the greenhouse effect, global temperatures of the air and water have risen. When
ocean temperatures rise, water current cycles can change which affects the weather systems.
These changes to weather patterns lead to changes in climate and can cause other flow-on
An animation and interviews with experts can be viewed online through the
ABC Science production series, ‘Crude: the incredible journey of oil’ xiv
Select Crude part 1.
The series is a visual journey of the formation of fossil fuels from the age of the dinosaurs
offering insight into the current release of greenhouse gases related to using energy stored
below the earth’s surface.
14 THE ENERGY HANDBOOK 2012
effects across landscapes and waterways. The impacts of climate change on agricultural systems,
businesses and communities include temperature and rainfall pattern changes, increased floods,
droughts and potential water shortages, in addition to rising sea levels and other natural
disasters.xv
As a result of the type of energy used to supply our needs, Australia’s greenhouse gas (GhG)
emissions are high in comparison to other countries. As shown in Figures 7 and 8, Australia has
the highest emissions per person per year due to our energy sources.
Figure 7: Per capita emissions due to energy use (2005) xvi
Figure 8: Australian Energy Use by type compared to other countriesxvii
Australia’s high GhG emissions result from high consumption of coal, both black and brown, as
the primary energy source to generate electricity and transport fuel consumption, mainly from
petroleum, as shown in Figure 9. By shifting our primary energy sources to cleaner energy, we
can significantly reduce our emissions in the future.
15 THE ENERGY HANDBOOK 2012
Figure 9: Australia’s energy consumption, by energy typexviii
Energy Type 2005-06 2006-07 2007-08 2008-09 2009-10
PJ PJ PJ PJ PJ
Consumption of fuels
8 084 8 264 8 367 8 366 8 353
Black coal 1 639 1 686 1 655 1 527 1 488
Brown coal/lignite
705 611 630 751 742
Coke 76 77 78 63 73
Coal by-products
81 78 80 55 66
Liquid biofuels 1 2 5 7 10
Wood, woodwaste
90 93 108 103 103
Bagasse 109 111 112 103 88
Refinery input 1 407 1 503 1 462 1 480 1 439
Petroleum products
1 968 2 000 2 062 2 072 2 090
Natural gas 1 108 1 187 1 237 1 323 1 382
Town gas 7 7 4 3 0
Solar energy 2 6 7 8 10
Total electricity
891 904 929 871 860
of which Hydro 58 52 43 40 45
wind 6 9 11 14 17
solar 0.4 0.4 0.4 0.6 1.0
Production of derived fuels
2 460 2 574 2 605 2 487 2 409
Coke 98 98 98 69 76
Coal by-products
81 81 82 54 65
Petroleum productsa
1 429 1 534 1 557 1 544 1 471
Town gas 5 5 4 3 0
Thermal electricity
847 857 863 817 797
Total energy
consumptionb 5 625 5 690 5 763 5 879 5 945
Source: ABARES 2011, Australian Energy Statistics, Table C. a Production may exceed refinery input as some petroleum
products are produced from other petroleum products. b Total energy consumption is the total quantity (in energy
units) of primary and derived fuels consumed less the quantity of derived fuels produced. Totals may not add due to
rounding.
16 THE ENERGY HANDBOOK 2012
How do you use energy?
Energy is mainly used for electricity generation and transportation as shown in the BREE Figure
10: Australia’s net energy consumption by sector. To make significant reductions in our energy
use, we need to better understand our energy use, and its impacts. By identifying opportunities
to reduce and conserve energy, we can then minimise the energy consumed to perform work
and daily living tasks. This will be discussed further in the section on energy demand.
Figure 10: Australia’s total energy consumption by economic sectorxix
Sector 1974-75 1979-80 1989-90 1999-00 2009-10
PJ PJ PJ PJ PJ
Agriculture 39 47 55 72 96
Mining 65 81 160 273 509
Manufacturing 928 965 1 067 1 192 1 261
Electricity generation
540 743 1 066 1 427 1 793
Construction 29 38 41 29 25
Transport 701 825 1 012 1 267 1 447
Commercial a 87 104 151 219 295
Residential 246 262 322 392 440
Other b 59 66 71 102 78
Total 2 695 3 131 3 946 4 971 5 945
Totals may not add due to rounding. a Includes ANZSIC Divisions F, G, H, J, K, L, M, N, O, P, Q and the water, sewerage
and drainage industries. b Includes consumption of lubricants and greases, bitumen and solvents, as well as energy
consumption in the gas production and distribution industries and statistical discrepancies.
Source: ABARES 2011, Australian Energy Statistics.
Energy conversion and transmissions
Energy Conversion is defined by BREE as,
“The process of transforming one form of energy into another (derived) form before
final end use. Energy used in conversion is the energy content of fuels consumed as
well as transformed by energy producing industries. Examples are gas and liquefied
petroleum gas used in town gas manufacturing, all hydrocarbons used as feedstock in
oil refineries, and all fuels (including electricity) used in power stations—therefore,
energy used in conversion also includes energy lost in the production, conversion and
transport of fuels (such as energy lost in coke production) plus net energy consumed
by pumped storage after allowance for the energy produced.”xx
17 THE ENERGY HANDBOOK 2012
When energy is converted from one form to another, there are ‘losses’ related to conversion.
This has implications for the energy efficiency of an overall system. For example, during the
process of coal being burned to produce electricity, the main energy conversions/transfers are:
Burning coal (chemical) to produce heat (thermal);
Heat transfer from flames to boil water and make steam;
Steam (thermal) turns turbines (mechanical);
Turbines transfer energy to electrical generator’s shaft;
Generator shaft rotation (mechanical) produces electricity in the coils (electrical).
In any energy system, the energy available to do useful work is reduced by losses when it is
transformed form one form to another. For example, less than half of the energy stored in a
piece of coal becomes electricity, the rest is lost as heat, light & sound into the environment. The
electrical voltage transforms as the energy enters the grid and leaves the grid and there are
losses as it travels along the grid and as electricity is used in end-use devices. Overall, the end-
use energy only provides a small percentage of the primary energy used to create it, sometimes
referred to as ‘useful energy’. The energy that is ‘lost’ is not truly lost – it still exists, but it is in a
form which we cannot use.
Image 6: Conversion and transmission loses
A detailed example of transport energy includes the petrol or fuel used to power a car, which is a
high quality energy source. In other words, it concentrates a large amount of energy into a
relatively small mass. That energy is easily accessed by burning during combustion. In the
process, around 70% of the energy is converted to other forms which are of no use in making
the engine work.
18 THE ENERGY HANDBOOK 2012
These forms include:
Sound (mechanical energy);
Friction (thermal energy);
Air turbulence (mechanical energy); and
Heat from the exhaust in the form of hot air (thermal energy).
None of the above forms of energy help to make the car move forward (the original intention)
and are therefore ‘lost’ energy which cannot easily be harnessed or made useful. In other words,
very little of the energy actually transports the person, most has been used to power the car.
19 THE ENERGY HANDBOOK 2012
How do we measure energy and power?
In order to understand units of energy to measure and compare energy efficiency, the standard
metric measurements must be understood. The scientific unit of work is a joule (J) (named after
James Prescott Joule) which is work from a force of one newton acting over the distance of one
metre. A basic unit of energy is a joule (J), but more often energy is measured in much larger
quantities such as kilojoules (1,000 joules), megajoules (1,000,000 joules) and gigajoules
(1,000,000,000 joules).
Electrical energy used for power, which we call electricity, is measured in watts(one joule per
second). Although, electrical energy is frequently measured as a kilo watt-hour (kWh), being
1,000 watts consumed over one hour. Other common measurements are summarised in Figure
11.
Figure 11: Common units of measurement & symbols
Energy Unit Symbol Example Type of Energy Measured
Calorie CAL Chemical Human energy
Joule J Basic Basic Energy
Kilojoule kJ Thermal Gas
Megajoule MJ Thermal Gas
Gigajoule GJ Thermal Gas
British thermal unit Btu Thermal Heating and Cooling
Watt W Electrical Electricity
Watt-hour Wh Electrical Electricity
Kilowatt-hour kWh Electrical Electricity
Amperes (Amps) A Electrical Current or flow rate
Volts V Electrical Force or pressure driving the current
Direct Current DC Electrical Unidirectional flow
Alternating Current AC Electrical Reversing flow
Quantity measurement Symbol Example
Kilo K 10³ (thousand) 1 kWh or kilo watt hour = (1000 watts)
Mega M 10⁶ (million) 1 MJ or megajoule = 1,000,000 joules
Giga G 10⁹ (1000 million) 1 GJ or gigajoule = 1,000,000,000 joules
Litre L Fuel Transport
Gram G Volume Liquid
Tonne T Gas/volume Greenhouse gases / oil
Metre M distance Length
Cubic metre m³ Volume Liquid
Barrel Bbl Volume Oil
Time Measurement Symbol Example
Hour H Per hour kWh
Per annum Pa Per annum 500 MJ pa
20 THE ENERGY HANDBOOK 2012
Calculating energy use can be accomplished by determining the power required by a device and
the time the device is in use.
Calculating electrical power
Electrical power is the power required by an appliance or machine, typically stated on a data
plate. The data plate states the power rating in volts and amps or the watts required to use the
appliance or machinery as shown in Image 7: Data plate example.
Image 7: Data plate example
To calculate the power in watts (W), the voltage (V) is multiplied by the current amps (A).
Example: The laptop data plate in Image 7 requires 19 volts (V) and 3.42 amps (A), calculated as:
19V x 3.42A = 65W
For a comparison, a blender which is rated at 240V at 5.42A, is calculated as:
(power) 240V x 5.42A = 1,300W
Calculating energy
Energy is the actual usage of electrical energy over time, most often reflected on a utility
statement from the electricity company.
21 THE ENERGY HANDBOOK 2012
Energy is calculated in watt-hours (Wh), by multiplying power (W) by time in hours (h).
Example: The laptop discussed previously required 65W of electrical energy.
If it is used over 3 hours, the energy required is calculated as:
65W x 3h = 195 Wh
For comparison, a blender is rated at 1,300W. How much energy is used by the blender in 2 hours?
1,300 x 2 = 2,600 Wh
Converting Wh to kWh
A kilowatt hour (kWh) is when 1000 watts (1 kW) are used during one hour. Therefore, to
determine the energy in kWh for an appliance or device, the watts are multiplied by the time
used and then divided by 1000 .
Example: The laptop requires 65W over 3 hours calculated as 195 Wh.
To calculate the kWh, divide the total Wh by 1000:
195/1000 = 0.195 kWh
For comparison, the blender required 1,300 W over 2 hours calculated 2,600 Wh or 2.6 kWh
Comparing energy consumption
To compare energy, the same unit of measurement is required. On a utility bill for natural gas
usage it is often measured in joules (J) or mega-joules (MJ), although electricity is measured in
kilo-watt hours (kWh). These units must be converted into joules or mega-joules for comparison.
Thermal energy is sometimes measured using British Thermal Units (Btu), MJ (mega joules)
and/or kWh are most often used to measure heating and cooling systems.
A kilo-watt hour can be converted to joules given there are 1,000 watts in a kilo-watt over 1 hour
(60 minutes including 60 seconds in each minute). Therefore, to determine the total seconds in
one hour, 60 seconds (s) is multiplied by 60 minutes (m) or 60s x 60m = 3600 seconds.
Example: 1kWh = 1000w x 3600s
= 3,600,000 J
To determine MJ = 3,600,000 (J) / 1,000,000 (M)
= 3.6 MJ
Energy = power x time
For example, electricity is connected to a house providing a power supply, but the energy is
not used until a service, e.g. a light is turned on for a period of time. If two lights that are
exactly the same are turned on the power, rate of consumption, is doubled.
22 THE ENERGY HANDBOOK 2012
What is energy management?
The demand for electrical energy is growing rapidly creating issues related to:
overall electricity demand;
peak demand, the period of highest consumer electrical demand;
electricity generation capacity and availability;
electrical infrastructure capacity and availability;
massive capital investment required and the accompanying consumer electricity price
increases;
environmental and social impacts.
In this section some approaches available to manage the electricity demand are discussed.
Measuring energy use
The best method to manage energy use is by first determining amount of energy used through
an energy audit.
A desktop audit, Level 1, can be completed by collecting and reviewing monthly, quarterly or
annual energy statements or contacting your energy provider to request a copy. Level 2 may
include a walkthrough audit of a designated area, such as a home, small business, large
commercial business or industrial plant to review data plates. During a walk through audit the
following should be determined:
1. Identify the number and type of appliances / devices requiring energy;
2. The amount of energy required per appliance / device based on the power rating from
the data plate
3. The amount each is used over a specified timeframe (minutes, hours, days, per annum,
etc.).
Once energy use and demand is determined, the information is analysed against conservation
and energy efficiency opportunities. To engage further in this process, a second complimentary
educational resource titled ‘Energy Efficiency Supplement’ is available to support the audit
analysis process.
The Australian / New Zealand Standard for Energy Audits is ANZS 3598:2000, defined in 3
levels:
Level 1 – Overview: Identifies energy consumption across a site to develop an initial
benchmark, typically in the form of a desktop audit (accuracy within +/-40%);
Level 2 – Energy Use Audit: Identifies energy sources, amount used and where it is
used to determine areas of potential savings (accuracy within +/-20%); and
Level 3 – Audit Analysis: Detailed analysis of energy use to determine savings
potential including the costs and benefits of implementing the recommended
savings (accuracy within +10% for costs and -10% for benefits).
23 THE ENERGY HANDBOOK 2012
Supply-side management
Energy is supplied to consumers from a source controlled by centralised power generators and
distributors, mainly non-renewable coal and gas. Supply-side management (SSM) is the control
of energy delivery at the suppliers’ side (i.e. upstream of the meter in the case of electricity
supply). Centralised energy production can be sourced from renewable energy on a large scale,
such as wind or solar farms. Energy suppliers must:
Match supply capability to long-term demand.
Ensure instantaneous capacity is always larger than peak demand.
Match energy sources to efficiently meet the current demand.
Improve the efficiency of generation and distribution.
In an effort to increase the amount of renewable energy used to produce electricity, incentives
have been introduced. The energy retail market supports the Mandatory Renewable Energy
Target (MRET) through Renewable Energy Certificates (REC). The MRET requires that a given
percentage (currently 20% by 2020) of electricity will be sourced from renewable energy.
Additional costs from energy suppliers are passed on to consumers due to a number of factors.
The current electricity system must respond to a growing demand for electricity due to
increased use and a growing population. The current energy generation and distribution system
requires up to date infrastructure in place of the current aging and out-dated system. New
renewable energy sources require new infrastructure to be developed. Extreme weather and
weather related events such as bushfires, drought and flooding can also impact on energy supply
and distribution by damaging the electricity transmission lines. These extreme weather events
are likely to increase in intensity and frequency as climate change progresses.
Demand-side management
End users have an opportunity to manage the demand for electrical energy, firstly through
conservation. When managing energy from the demand side, electrical energy efficiency will be
maximised due to greater reductions at the primary energy source. These reductions are also
linked to savings during transmission from the source (primary energy) to the end use point.
The following describes demand side management (DSM) opportunities to minimise energy
consumption on the consumers’ side, broadly described as:
1. Energy conservation/efficiency programs for machines/appliances/ devices – designed
to reduce the amount of something being used or overall consumption. Examples:
minimising energy demand by turning equipment off when not in use, setting or
selecting the energy efficiency option for automatic shut down when not in use after a
specified time frame, de-lamping or installing energy efficient lights or automation
systems to turn lights off after a specified period of time, installing energy efficient
kitchen/office/media appliances, even improving insulation or installing energy efficient
windows to reduce heating and cooling needs.
2. Load or demand management programs – designed to reduce peak demand by shifting
activities to off-peak hours. Examples: load control is determined by identifying the
24 THE ENERGY HANDBOOK 2012
machines or appliances which have the highest energy demand and shifting the
associated activities to off peak times.
3. Distributed power generation – power produced at or near the point of use. Examples:
solar photovoltaic (PV) panels can often harness more energy than required at the point
of use or may harness energy at times when the energy is not used on site. This energy
can be re-distributed into the electrical distribution system to sell for use to other
customers.
4. Fuel substitution programs – switching to a more efficient or renewable fuel for a
particular application or system. For example: switching from coal to natural gas to
generate heat or electricity. Alternatively, solar water heating systems which can
provide a significant percentage of the requirements for hot water heating in place of or
assisted by an electric or gas boosted system.
Demand side incentives include rebates or certificate schemes to encouraging large scale
changes given that consumer cost savings may be relatively small when energy prices are low.
Solar PV systems installed and connected through two-way electricity meters are an example of
a renewable ‘distributed energy system’. The energy is generated on-site in small amounts
across a large area as opposed to a traditional system from a distant source at a centralised
power station. Consumers generate, own and use the energy at the local level, therefore
increasing the efficiency of the system by reducing the length the energy has to be transmitted
from the primary source to the end use point.
However, the electricity grid was designed for centralised generation and distribution and is
currently not well suited for distributed generation. Balanced control of the grid, to match
demand with supply to prevent blackouts, depends on traditional centralised generation
systems. Although, distributed energy generation supports:
Supply efficiency - fewer transmission losses occur when the energy source is local.
Supply security – although generation from some sources is dependent on weather etc.,
there is no single point of failure on distributed systems.
Supply infrastructure – costs and environmental impacts are reduced as a result of
reduced need for power lines and pylons.
Two way meters are being installed across Australia are increasing the complexity of our energy
systems, meaning they are no longer a one way system as shown in Image 8: Future electricity
distribution systems.
25 THE ENERGY HANDBOOK 2012
Image 8: Future electricity distribution systems
26 THE ENERGY HANDBOOK 2012
What is energy efficiency?
Although our actions and systems impact on other systems, compromises and trade-offs must
be understood to determine the most appropriate options based on end use requirements.
Different types of energy are more efficient than others based on a number of factors.
Generally, energy efficiency is based on an equation where the amount of energy input is
compared to the amount of energy output. In an effort to increase efficiency the aim is to either:
1. Do less - conservation
2. Do the same with less - use less energy while achieving the same level of output or
3. Do more with less - use the same amount of input while increasing the level of output
4. Do less with even less – eliminate all unnecessary work and determine the most efficient
process to carry out the remainder of the work
In an effort to maximise electrical energy efficiency, two things need to be supported:
Firstly, the number of conversions across the system transferring the energy to the end
user must be minimised to prevent ‘loss’ of useful energy and
Secondly, the conversion efficiency process must be maximised
Energy losses also occur at the end user stage if the appliance, lighting or machinery is not
performing to maximum efficiency increasing energy losses.
“There has been a long-term decline in the energy intensity (energy consumption per unit of gross
domestic product) of the Australian economy. This trend can be attributed to two main factors. First,
energy efficiency improvements have been achieved through both technological change and fuel
switching. Government policies at both the national and state/territory level have contributed to the
implementation of new technologies that improve energy efficiency. Second, rapid growth has
occurred in less energy-intensive sectors, such as the commercial and services sector, relative to the
more moderate growth of the energy-intensive manufacturing sector. Trends in energy intensity are
not uniform across Australia.”xxi
An example of end use efficiency through product selection is replacing a standard incandescent
100 watt light bulb with a more energy efficient 20 watt light bulb. By selecting the energy
efficiency light bulb the primary energy being sourced is not only reduced, but the heat loss at
the end use has been minimised. Image 9 shows a comparison of an incandescent light bulb and
an energy efficient compact fluorescent at the primary and end-use points.
27 THE ENERGY HANDBOOK 2012
Image 9: Energy efficiency of an incandescent vs. compact fluorescent
What is an energy rating?
Efficiency can be gained by selecting the most appropriate energy for a specific task. As well as
the (in)efficiencies within a system, there are wider pros and cons for the choice of technology
applied to provide a service.
Energy labels, as shown in Figure 12, can assist consumers in making purchase choices. Products
are rated using a star system. The number of stars is based on the energy requirements of a
particular appliance or machine. The number of stars allow for a quick comparison from one
product to another of the same type without a need to calculate the energy inputs and outputs
based on the appliance’s data plate. The more efficient the appliance, the more stars it is given.
For example, a three star appliance would require less energy, therefore, cost less to run
compared to the same type of appliance that only has one star.
28 THE ENERGY HANDBOOK 2012
Figure 12: Example of an energy label for a heating and cooling systemxxii
Energy Efficiency can be explored further in the second part of this series titled, Energy
Efficiency Supplement 2012.
29 THE ENERGY HANDBOOK 2012
REFERENCES
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http://bree.gov.au/publications/energy/index.html, p.24 viewed June 2012 iii BREE, 2012, Che, N. and Pham, P., Economic analysis of end-use energy intensity in Australia, Canberra,
May, http://bree.gov.au/publications/energy/index.html, p.2 viewed June 2012 iv BREE, 2012, Energy in Australia 2012, Canberra, February, Commonwealth of Australia
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BREE, 2012, Energy in Australia 2012, Canberra, February, Commonwealth of Australia http://bree.gov.au/publications/energy/index.html, p. 54-55, viewed June 2012 xiii
ZCA2020 Stationary Energy Plan Synopsis, University of Melbourne’s Energy Research Institute, p.5 http://media.beyondzeroemissions.org/ZCA2020_Stationary_Energy_Synopsis_v1.pdf, viewed July 2012 xiv
BREE, 2012, Energy in Australia 2012, Canberra, February, Commonwealth of Australia http://bree.gov.au/publications/energy/index.html, p. 40, viewed June 2012 xv
ABC Science, 2007, Crude- the incredible journey of oil, ABC http://www.abc.net.au/science/crude/ , viewed July 2012 xvi
The Garnaut Climate Change Review, Chap 7 Australia’s Emissions in a Global Context, Commonwealth of Australia 2010 http://www.garnautreview.org.au/chp7.htm xvii
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BREE, 2012, Energy in Australia 2012, Canberra, February, Commonwealth of Australia http://bree.gov.au/publications/energy/index.html, p. 23, viewed June 2012 xix
BREE, 2012, Energy in Australia 2012, Canberra, February, Commonwealth of Australia http://bree.gov.au/publications/energy/index.html, p. 28, viewed June 2012 xx
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Supplied by Sustainability Victoria 2012