Process and Outcome Evaluation of the Improved Energy Efficiency Standards Program

The Equipment Energy Efficiency (E3) Program, a collaborative effort among Australian and New Zealand governments, develops unified energy efficiency standards and labelling for energy-using products. The NSW Government’s Improved Energy Efficiency Standards for Household and Business Appliances (Appliance Standards) program was designed to fill gaps caused by resource constraints with the E3 Program. The Appliance Standards Program sought to advance four critical product streams: space heating, hot water systems, commercial catering equipment, and products with existing international regulations.

Initially allocated $7 million from the NSW Climate Change Fund (CCF), the program’s budget was later reduced to $4.3 million. The program also faced challenges due to administrative changes across various departments—first the NSW Office of Environment and Heritage, then the Department of Planning, Industry and Environment, followed by the Department of Planning and Environment, and eventually the Office of Energy and Climate Change in NSW Treasury. These changes impacted program continuity and oversight.

The evaluation aimed to assess how the Appliance Standards program overcame implementation barriers, consulted with relevant industry stakeholders and consumers, and the impact of collaboration with the Commonwealth Energy Efficiency Advisory Team (EEAT)[1] and the Greenhouse and Energy Minimum Standards (GEMS) Regulator[2]. It also sought to determine the extent to which the program streamlined the E3 Program’s standards development process and the extent to which the program achieved its regulatory and capacity-building goals within the Department.

ARTD conducted a process and outcomes evaluation using a combination of data sources:

• Document Review: Analysed 150 documents, including meeting minutes, progress reports, policy frameworks, and savings estimates.
• Stakeholder Interviews: Conducted 30 interviews with stakeholders including Department staff, Commonwealth E3 staff, GEMS Regulator representatives, external consultants, and industry stakeholders.

We also reviewed estimated energy (electricity and gas) savings, greenhouse gas reductions, and potential energy bill impacts.

An iterative and interactive evaluation process was employed, including workshops with key Department stakeholders to sense-test findings and identify key enablers and challenges in the standards development process.

The program developed a strong foundation for future energy efficiency standards and implemented thorough stakeholder engagement and adaptive management strategies. It effectively used innovative approaches like the Discrete Choice Experiment to understand consumer preferences and made valuable progress despite the constraints. The program struggled with an overly ambitious timeframe, limited initial expertise, and challenges in advancing products beyond consulting interested parties on the Regulatory Impact Statement(s). Issues with documenting energy savings and streamlining processes also hindered the program’s effectiveness and clarity.

Recommendations focused on improving handovers between program design and delivery teams, formalising collaboration between NSW and Commonwealth bodies, and incorporating dedicated recruitment periods to avoid delays. Additionally, recommendations emphasized the importance of transparent documentation and communication of modelling uncertainties to maintain stakeholder trust and ensure informed decision-making. Overall, these measures aim to streamline processes, retain expertise, and share innovations to benefit future energy efficiency programs.