Energy efficiency is an important tool for farms to help reduce costs and improve productivity.

For energy-intensive farming operations with irrigation pumps, cold storage and processing equipment, energy efficiency is a practical, cost-effective investment that pays off quickly by reducing operating costs and helping the farm stay competitive and resilient to rising power costs.

The International Energy Agency (IEA) released a Multiple Benefits of Energy Efficiency report this year which highlights that energy efficiency delivers far more than just lower energy bills.

The report recognises that while the payback period on energy efficiency projects is often calculated on the energy bill savings, efficiency projects generate wider economic, environmental, and social benefits.

The IEA states that the cost to save a unit of electricity through efficiency is on average less than half the cost to deliver that same unit by investing in new generation or grid expansion.

The report highlights other important benefits, particularly regarding efficiency:

• improves competitiveness by reducing costs and sometimes boosting productivity

• reduces risk from volatile energy prices and local grid stresses

• can improve comfort, health, and safety in workplaces

• extends the life of equipment and can enhance asset value.

The implementation of QFFs energy audit findings has demonstrated these savings as farmers report benefits such as improvements in yield, time savings, more water pumped for the same energy and a range of other benefits. If the farm is using less energy, there is an additional potential saving as a smaller renewable energy system would then be required.

The IEA has found that over the past two decades, efficiency improvements in IEA countries saved the equivalent of 20% of total final energy demand, offsetting growth in consumption. The cost of saving energy is consistently lower than producing it through new generation, often less than half, and efficiency upgrades can usually be implemented within a year. For farms and small businesses, this means faster paybacks, less disruption, and a more reliable way to cut costs.

The report advises that energy efficiency is one of the most cost-effective investments available to farms and small businesses. It cuts bills, reduces emissions, improves resilience, and adds wider benefits that strengthen long-term viability.

Emissions reductions are a key benefit as efficiency directly lowers greenhouse gas emissions from fuel use and electricity. As one of the lowest-cost decarbonisation options, it is vital for meeting climate goals and can also strengthen a business’s reputation or help meet supply-chain requirements.

Read the IEA report here: https://www.iea.org/reports/multiple-benefits-of-energy-efficiency

Read the article about Australis Plants in the Lockyer Valley nursery that reduced their power bills by over 50% over 4 years and said that “The improved productivity hasn’t been factored into the energy savings … but it would be more significant.” https://www.qldagenergyhub.com.au/news/energy-efficiency-more-than-bill-savings .

There are agricultural energy efficiency case studies, searchable by sector, region and technology at the Queensland Ag Energy Hub.

Energy Information Service for Landholders

For help with energy matters and updates, contact The Energy Information Service for Landholders, a free phone service for farmers and landholders in Queensland.

The service is available Monday – Friday from 8:30am – 5pm and can assist by providing information and guidance on a range of energy matters.

Call 07 3329 7500 to access the service today.