Resources and Energy Minister Gary Gray welcomed the broadening of the EEO, with the revised initiative set to include new projects from a range of sectors including mining, manufacturing, oil and gas, generation and some infrastructure projects.

Gray said the EEO program had enabled corporations to increase profitability, productivity and competitiveness.

“Trial results show net benefits in conducting energy-efficiency assessments at the design stage, with potential energy savings of 11-50%,” he said.

“For a new iron ore mine that uses around 2.5 petajoules of energy a year, integrating energy efficiency throughout the design can deliver potential savings of up to $A7 million a year, and up to $50 million over 10 years based on net present value.”

The EEO program will apply to new development and expansion projects from July 1, with the framework to be finalised within the coming weeks.

The government has also been examining the extension of the EEO program to electricity and gas transmission and distribution businesses.

However, a regulation impact statement found that costs would exceed the benefits and, as a result, the government has decided not to go ahead with the extension of the program to this sector.

The EEO program was first launched in 2006 and extended in 2011 as part of the Clean Energy Future package.

A recent independent review of the program found it to be effective in delivering millions of dollars in energy savings across business involved, with participating companies reporting savings of 88.8 petajoules, representing about 1.5% of Australia’s energy use, or over $A800 million a year.

“Now this opportunity is available to new developments,” Gray said.

Workshops outlining the regulatory changes of the program will be held in July and August.