Energy Efficiency- The Key Indicator for Energy Demand Forecasting and Management

Energy demand forecasting, which is an integral part of energy management has evolved over the past five decades. Of all the energy and economic indicators, used for energy demand forecasting, energy efficiency has emerged as one of the key indicators for current and future scenarios. Energy efficiency becomes even more significant, as it is forecasted to undergo a significant transition in Australia's National Electricity Market. This paper explores, evaluates and establishes the correlation of energy efficiency with total electricity generated, using Pearson's correlation coefficient and econometric toolbox in MATLAB. The parameters such as correlation coefficient (r) and standard error (t-stat) value from the regression analysis are found to be dynamic. The outcome shows that the correlation is transitioning from being strongly negative to strongly positive, indicating a rebound effect of energy efficiency and a correspondingly significant impact on energy management. This could mean potential disruption in the balance of nexus between energy-emissions-economy and thus, energy policymakers can use these results to formulate effective frameworks for accomplishing their ultimate goals of energy security, sustainability and climate change as a whole.