This is New Zealand's energy story, as told by Janet Stephenson and Sea Rotmann at the Task 24 workshop in Wellington in February 2013.

1. demand-side
The New Zealand energy
story ^
Sea Rotmann and Janet
Stephenson

2. NZ energy supply (1 slide only!)
• 61% of Total Primary
Energy Supply is non-
renewable (2011)* (2nd lowest
in OECD after Iceland)
• 77% of electricity from
renewable sources (2011)*
(3rd highest in OECD)
• World’s largest renewable
energy potential?
*MED 2012 NZ Energy Data File

3. Strategy structure
New Zealand energy strategy
This strategy retains the four priorities and twelve areas of focus
proposed in the draft strategy. These are intended to support
New Zealand to make the most of its energy potential.
The structure of the strategy is outlined in the following diagram.
Note that some areas of focus relate to more than one priority,
but for convenience are placed under one priority.
AREAS OF FOCUS
3
Embrace new energy
4
2 technologies
Develop renewable Competitive energy markets
energy resources deliver value for money
PRIORITIES
1
5
- 90% renewables by 2025 Develop petroleum and
Develop Oil security
mineral fuel resources
- 55PJ energy savings by 2015 resources
Secure and
and transport
- 10% energy consumption reduction affordable
GOAL energy
per staff member in the public service 12 6
Make the most
(cf 2008/09) Reduce energy-
related greenhouse of our energy
Reliable electricity
Environmental supply
- Extend MEPS/MEPL gas emissions responsibility
potential
11
Best practice in 7
environmental Efficient use
Better consumer
management of energy
information to inform
for energy projects
energy choices
8
10 Enhance business
Warm, dry, energy competitiveness through
9
efficient homes energy efficiency
An energy efficient
transport system
Balancing risks, constraints and opportunities

4. New Zealand energy -
domestic policies overview
• The Government takes the view that while we are
going to require fossil fuels for the foreseeable
future, there are actions we can take now to reduce
our dependence on oil and facilitate a transition to
alternative sources of energy.
• These actions include:
- New Zealand Emissions Trading Scheme
- Encouraging entry of biofuels and electric vehicles
to the NZ market
- Investment in public transport infrastructure; and
- The Petroleum Action Plan
Ministry of Economic Development 2011

5. New Zealand oil & petroleum
Ministry of Economic Development 2011

6. ENERGY USE IN NZ

7. What types of energy are used?
MED (2012) NZ Energy Data File p 11

8. What types of energy are used?
MED (2012) NZ Energy Data File p 11

9. What types of energy are used?
MED (2012) NZ Energy Data File p 11

10. What is it used for?
MED (2012) NZ Energy Data File p 14

11. What is it used for?
MED (2012) NZ Energy Data File p 14

12. How is energy use trending?
Graph: MED (2012) NZ Energy Data File p 17

13. How is energy use trending?
Graph: MED (2012) NZ Energy Data File p 17

14. How is energy use trending?
Graph: MED (2012) NZ Energy Data File p 17

15. How is energy use trending?
0.5% increase
in demand in
2011
Graph: MED (2012) NZ Energy Data File p 17

16. How is energy use trending?
21% improvement in
energy intensity since
1990 (but EE
improvement is well
below OECD average)
0.5% increase
in demand in
2011
Graph: MED (2012) NZ Energy Data File p 17

17. ELECTRICITY USE IN NZ

18. Electricity consumption by sector
MED (2012) NZ Energy Data File p 105

19. Electricity prices rising
And a 4.4%
residential price
rise in 2012
MED (2012) NZ Energy Data File p 135

20. Electricity demand flattening?
MED (2012) NZ Energy Data File p 119

21. Electricity demand flattening?
MED (2012) NZ Energy Data File p 119

22. 260 MW on hold
• Meridian Energy is canning its planned
North Bank Hydro Project on the
Waitaki River for the foreseeable
future, saying it is uneconomic in the
current flat electricity market.
• "Like other generators we recognise
that the demand outlook for the next
five years is probably flat to slightly
declining," chief executive Mark Binns
said in a statement.

23. NZ ENERGY BEHAVIOUR IN
CONTEXT

24. Low household energy use per
person

25. Low household energy use per
person

26. Low % of energy spent on space heating
IEA Scoreboard 2009
p97

27. Low % of energy spent on space heating
IEA Scoreboard 2009
p97

28. Low % of energy spent on space heating
IEA Scoreboard 2009
p97

29. High energy use per passenger-km
IEA Scoreboard 2009

30. High transport energy use as % of total
household energy
Compiled from IEA figures (2009) by Gerry Carrington

31. High transport energy use as % of total
household energy
• 0.73 vehicles per
capita (MOT series
data)
• 8th highest in
world (World Bank
Compiled from IEA figures (2009) by Gerry Carrington
indicators 2010)

32. DEMAND-SIDE INITIATIVES

33. Transpower – demand response
• Action taken by
consumers to reduce
net demand in
response to (usually) a
price signal
• Pilot with large users
from 2008, now beta
testing
• Medium term target
100MW in upper North
Island
• Savings in new
generation & grid
capacity

34. Energy companies - smarter
meters
• Increasing
installations by
energy companies
• Improve their
knowledge of
customers’ use
patterns
• Benefits for
customers less clear
so far

35. Powerswitch
www.powerswitch.org.nz
Consumer NZ (independent body) with support from
the Ministry of Consumer Affairs
MED (2012) NZ Energy Data File p 123

36. Government demand-side
initiatives
MEPS

37. Government demand-side
initiatives
MEPS

38. Government demand-side
initiatives
MEPS

39. Government demand-side
initiatives
MEPS

40. Government demand-side
initiatives
MEPS

41. Council & community action
Energy use in homes & businesses
Energy use in transport

42. DEMAND-SIDE ISSUES

46. Transport inefficiency, car reliance &
transport-related GHG emissions
44% of
emissions in
2009
NZ Government (2011) NZ Energy Strategy 2011-2021, p9

47. NZTA 2012

48. NZTA 2012

49. NZTA 2012

50. NZTA 2012

51. NZTA 2012

52. Poverty & energy use (~25% of hh)
Household income $55,000 pa Energy bill $2,700 pa median
median

53. Issues for this cluster
• Housing quality, damp, poor
insulation, inefficient heating devices
• Energy poverty, health issues
• Poll* on NZers financial concerns: 51%
said electricity bills of most concern
(more than rates, food, petrol, house
prices)
*Fairfax NZ, n=600, Jan 2013

54. Wealth & energy use (~20% of hh)
Household income $85,000 pa Energy bill $4,000 pa
median median

55. Issues for this cluster
• Large houses, many appliances
• Highest energy use
• Little attention to efficiency or
conservation
• Can afford action, but don’t take it

56. Grid management issues
• Increasing renewable
& distributed
generation
• Feed-in to grid from
household PV
• Electric vehicles in
due course?

57. DSM in policy
• Low visibility of demand side in govt
priorities
• Lack of govt action to support targets,
e.g. business efficiency, home energy
advice
• Poor funding and profile for EECA,
dislocation in relation to supply side

58. Where would we like to be?
• fast followers and adopters of best
practice?
• leading in renewable electricity?
• improve housing stock and social norm
around warmth and comfort?
• but don’t go too far (like eg Norway)
• less fuel poverty, more energy security
• more involvement from citizens (make
energy visible)?

59. Where do you think we should be?