Incumbent Technologies

Last week we explored the potential that DELWP could re-consider lighting in the 2021-2025 target setting for the VEU, based on the ‘business as usual’ (BAU) theory. Today, we further explore the BAU case in more detail.

Technology options and redundant products

It’s proposed under the BAU case that if there are only energy-efficient lighting options available to replace or upgrade incumbent lights, energy-efficient lighting upgrades will occur naturally. It is important to note what options are available to customers.

1. Residential: all incumbent technologies are still available to purchase except incandescent lighting technology. This technology was generally used in traditional light bulbs and was banned for sale in Australia in 2017. BAU does apply to A-bulb replacements and we accept that this should be considered in setting target methodology. All other traditional technologies are still available.
2. Commercial: all traditional technologies are still available.

Propose ‘E3 Report’ COAG recommendations

It is important to note that the outcomes of the Regulation Impact Statement (RIS) are reliant on the guidelines that will be released from the European Union (EU) findings due out on the 5th December 2019. 

The Council of Australian Governments (COAG) Energy Council agreed to examine the case for the next phase of lighting energy efficiency regulation in December 2015, as part of the Equipment Energy Efficiency (E3) Programs Prioritisation Plan. This RIS considers policy proposals to improve the energy efficiency across residential and commercial lighting in Australia and New Zealand. It is important to note that representation of this working group included DELWP (represented by Jack Brown) and the Energy Savings Industry Association – ESIA – (represented by Stuart Edgley).

The key focus, relevant to the VEU, is the phasing out of halogen downlights. The proposal to phase out halogen lighting was postponed after fierce debate within the group. It was agreed that the outcome of the EU’s decision on the same debate should therefore be used as a directive. The results of the EU’s RIS will be available on the 5th December 2019. At this stage, COAG will be guided by this decision; whether to or not to consider applying a phase-out of halogen downlights. This phase-out, if implemented, will be imposed on the importers only and not the retailers. The importers will not be able to import halogen downlights after September 2021. There will be a grandfather clause applied to manufacturers who can sell existing stock; however, the detail of this clause has not been defined. 

Don’t miss next week’s article where we will continue to explore the topic of BAU in more detail.