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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

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Page 1: Energy productivity skills and training pathway · training resources against identified energy productivity competencies in target sectors It is recommended that industry bodies

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

Page 2: Energy productivity skills and training pathway · training resources against identified energy productivity competencies in target sectors It is recommended that industry bodies

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?

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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

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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.

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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

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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

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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

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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

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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.

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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.

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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.

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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

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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.

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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.

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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.

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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.

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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

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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

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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

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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

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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

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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

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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;

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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.

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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.

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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

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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