Growth in peak period electricity demand has driven the requirement for a significant expansion of Sydney's electricity network. Energy efficiency and demand management activities in office buildings may be an alternative to electricity network augmentation, with significant economic and environmental benefits. This paper identifies and characterises trends in electricity peak demand in Sydney's office buildings, comparing a range of high and low energy consuming buildings. The paper assesses the potential for energy efficiency and demand management strategies in office buildings to reduce peak loads and hence defer electricity network augmentation. Base building electricity load data was analysed for a sample of 25 Sydney office buildings, along with Sydney electricity substation and temperature data. Peak loads for buildings with best practice energy performance were found to be 26% lower than for buildings with average energy performance, while annual electricity consumption was 57% lower. With these findings, this paper has assessed the effectiveness of current energy efficiency policy for peak demand management and has recommended strengthening energy efficiency policies in order to capture coincidental peak load reductions, as well as new policies specifically targeting peak demand management. It was found that these measures could offer significant potential to defer network investment. (C) 2011 Elsevier B.V. All rights reserved.