Energy efficiency requirements should be included in the planning process, and stated clearly in the project outcomes for any new asset or major upgrading of an existing asset. This will remove any uncertainty in the minds of internal staff that develop procurement briefs and will create a benchmark for consultants and suppliers to attain. Although this may result in a slightly higher purchase price, experience has shown that the increased cost will usually be recouped from reduced operating costs. Often the pay back period for selecting the most energy efficient item is significantly less than the life of the item.

Organisations that normally manage significant annual capital investment programs can include the requirement for energy efficiency into the appropriate policy, procedures, program/project briefs and/or standard design guides.

Plant and Equipment

An agency should aim to purchase energy efficient plant and equipment to minimise the environmental cost of operating the item.

Smaller domestic appliances are clearly labelled with "Star Rating Labels" to enable agencies to select the most efficient appliance. Office equipment also has energy saving features included as standard functions, such as sleep mode and Energy Star compliance.

Unfortunately, reliable and easily comparable energy consumption information for commercial plant and equipment is generally not available. This makes comparing various options difficult, but the potential for energy savings can be greater. It is possible to develop a reasonable understanding of how efficient a system is by looking at the different components and features. Ask suppliers about how efficient the various components are and how the overall design reduces energy consumption. Asking for efficient components will generally add to the cost of systems but a thorough analysis of the capital and operating costs over the life of the item will enable the additional costs to be justified.

Buildings

The way to achieve the most energy efficient outcome for a building is to include energy efficiency as a requirement from the start of the procurement process. The opportunities for achieving the best outcome are greatest at the beginning of the process - as more decisions are made, the available options gradually decrease. However, there are many opportunities to significantly improve the energy efficiency of existing buildings.

Leased facilities

Leased buildings can present government tenants with some difficulties in controlling energy consumption, as tenancy arrangements often have limited flexibility to initiate energy saving measures. For example, in lease situations it is often difficult to influence central services, but tenants can usually invest in reducing light and power costs. Even though some energy use is outside the direct control of the tenant, such as that for air-conditioning, there is still opportunity to influence the Property Manager. In a privately owned building, a government tenant can influence the owner to improve the common services when negotiating a new lease agreement.

The Department of Housing and Works' Office Accommodation Policies, released in August 2004, contain specific requirements relating to sustainability in government accommodation including requirements for Australian Building Greenhouse Ratings (ABGR). ABGR's can be used to compare the performance of buildings offered for lease and in negotiating new or renewed leases. For example, more efficient lighting could be provided to improve the energy performance of the building, reduce the tenant light and power operating costs, and improve the value of the building. The arrangement can benefit both owner and tenant.

Another issue for tenancies is the energy costs associated with central building services which can be charged to tenants as an outgoing expense or be incorporated into the rent payment. In government owned office buildings, the central services energy costs are generally included in the rent. In privately owned buildings they are often treated as an outgoing expense, being divided between tenants based on the ratio of leased area to the total net lettable area.

Responsibility for the efficient operation of the building central services should rest with the owner. Setting a fixed rate for central services or having responsibility for the central services energy costs excluded from the outgoings and included in the rent may achieve this. In this case the financial benefits accrue to the building owner, providing an incentive to achieve energy and cost savings. It will encourage them to ensure efficient operation and time management of equipment and devices both during and outside business hours.

New and refurbished buildings

It is easier and more cost-effective to design an energy-efficient new building than to make an existing building energy-efficient. However, there are generally substantial gains to be made in implementing energy efficient measures in existing buildings.

If building new or refurbishing existing premises the way to achieve the most energy efficient outcome is to include energy efficiency as a requirement from the start of the process. The largest gains are inevitably available when a process is commenced. The further you proceed with a process the more limited the options become.

For new projects and large refurbishments, considerable value adding can be achieved during the concept and design process through the involvement of an independent energy efficient expert to regularly review the building brief and design. An independent eye can provide objective comment on the energy efficiency features the design team has included in the design.

Energy efficiency should be a primary requirement of any contract. The objectives should be clearly and unambiguously stated to ensure that outcomes are realised. This will help guarantee that energy efficiency measures incorporated in the design are not compromised during the construction phase of the project.