|
|
EECA was busy in 2009 implementing the Government’s hugely popular insulation and clean heating programme, Warm Up New Zealand: Heat Smart. The scheme has seen a massive and rapid increase in the number of houses benefiting from better insulation, with tens of thousands of New Zealand homes now better off. That kind of expansion doesn’t come without a few teething troubles and together with the industry, we have worked hard to develop and roll out an effective programme that makes a difference for as many people as possible. The scheme is a prime example of how energy efficiency improvements very often come with co-benefits that can be even more significant than the energy savings. It is a sad fact that the average temperature of New Zealand’s homes compares very poorly to other OECD countries. We simply don’t heat our houses properly, and no wonder, if our insulation is so poor that most of the heat escapes out the walls, ceiling and floor. By improving this situation, we are also improving the lot of families with respiratory illness such as asthma, thereby reducing the national health bill. Another encouraging outcome of this high profile scheme is the heightened awareness the public has gained of the value of a healthy, energy efficient house, which in turn encourages homeowners to consider other aspects of energy efficiency, and motivates businesses and organisations to find new ways to get into the market. One of these is the emergence of new funding models. Environment Canterbury, Nelson City Council, and Hawke’s Bay Regional Council are enabling their ratepayers to pay off through the rates the remaining cost (after the government subsidy is deducted) of home retrofits like insulation and clean heating, with other councils such as Greater Wellington planning to follow suit. In addition, Nelson City Council has launched the Solar Saver Scheme, which provides a similar model for solar water heating. In the private sector, energy company Nova Solar is assisting their customers to invest in solar water heating, and allowing them to pay the cost back through their electricity bills. EECA is working with all these organisations, and sees such arrangements as an excellent step forward in overcoming the capital barrier to eco-friendly technology which will provide benefits both to the purchaser and to the whole country. While the co-benefits are significant, the energy savings themselves are also worth noting. In 2009 EECA reported that its programmes during the 2008/09 year produced savings of 2.5 petajoules – equal to the amount of electricity used each year by 70,000 homes. A significant part of those savings came from minimum energy performance standards, which keep the worst performing electrical products off our shelves. Another success of the past year has been the strong support from retailers for the energy labelling programme. By providing a means of comparing the energy use and running costs of appliances, consumers can choose the most efficient. It’s encouraging to see a very high rate of 99 percent compliance with the mandatory labelling scheme this year. Another success in 2009 has been the very strong interest in the incentives EECA provides for businesses to invest in renewable energy and energy efficiency. Funding rounds for wood energy grants, distributed generation, technology grants, and business energy audits have all been over-subscribed. To me, this indicates the growing realisation in business that good energy management makes good business sense. Wood energy is an example of the potential renewable energy holds for New Zealand’s economic development. A report by Scion indicates we could more than double our use of this carbon neutral energy source for domestic energy production, and equally exciting are the prospects for export. Demand for wood pellets is strong internationally, and growing, particularly in the EU where they have set a renewable energy target of 20 percent by 2020, with bioenergy making up the biggest increase. Our sustainably produced forests make us an ideal source to satisfy this growing market, and I believe there is an opportunity for New Zealand to add value to our primary produce on these shores, rather than exporting low value logs to places like China for processing. Alongside wood, New Zealand also has considerable unrealised potential in its geothermal, wind, hydro, wind, biomass and marine renewable energy resources. Unlike many other countries which will struggle to meet goals of generating more than 20 percent of their electricity from renewable sources, New Zealand already generates around 70 percent of electricity from hydro, geothermal, wind and other renewables, and we have the capacity to generate much more – as much as 90 percent is possible. This presents us with a strategic advantage, in an era where businesses and consumers are looking for products and services that are clean, green and climate-friendly. “Renewable New Zealand” is a marketing advantage that could attract investors to our shores, while enhancing the environmental reputation of our own exporting companies. Of course the country does face challenges in getting these resources developed. The Environment Court’s decision to reject Meridian’s Project Hayes wind farm in Central Otago dealt a blow to the confidence of wind developers and looks like having far-reaching consequences. Though many wind farm projects seem to get a frosty reception if media reports are anything to go by, research by EECA finds that wind is the preferred source of future electricity for New Zealanders, with a whopping 83 percent saying they support it. The fact is, developing our bountiful renewable resources is essential if we are to tackle climate change and become wealthier as a country. Overall, our renewable energy reserves can play a crucial role in our economic development, alongside other natural advantages we have over other developed countries, such as our relative abundance of fresh water, our agreeable climate, and access to fertile land. Having said that, we can’t rest on our laurels as far as renewable energy is concerned. While our electricity sector is doing well at 70 percent renewable, in the transport sector we are only 0.7 percent. If we are serious about reducing greenhouse gas emissions, we cannot ignore the transport sector. Transport and commercial buildings are two sectors identified by the International Energy Agency as areas where New Zealand needs to lift its energy efficiency game. With more than half of our energy greenhouse gas emissions coming from transport, this area certainly poses a challenge, and the commercial sector in general can do a lot more to improve energy management and reduce greenhouse gas emissions. The challenge for 2010 will be finding ways to engage in these energy intensive sectors and make the case for investments that will improve energy efficiency and reduce greenhouse gas emissions – with benefits not only for businesses but for all of us.
Energy NZ Vol.4 No.1 Energy Perspectives 2010 |
A surge of interest and awareness in household energy efficiency was the highlight of 2009 for the Energy Efficiency and Conservation Authority. By Mike Underhill, EECA chief executive.