Energy consumption in our homes, businesses and workplaces: a future view   Mike Underhill, Chief Executive NERI Winter Li...
The global energy challenge <ul><li>Peak oil / sustainability </li></ul><ul><li>Climate change </li></ul><ul><li>Pollution...
NZ – among the world’s leaders in renewable energy (But renewables still very much the minority source of energy for NZ)
Where our total energy comes from
Where we use energy
Where our electricity comes from
Where we use electricity
How the sectors fare Efficient use Renewable, low carbon Non efficient Non renewable, high carbon products industry homes ...
NZ’s fossil fuel exposure <ul><li>More than half of all energy is fossil fuel – much of that used in transport </li></ul><...
The challenge <ul><li>Replace fossil fuels with renewables </li></ul><ul><li>Use energy more efficiently, especially high ...
Supply side opportunities  – getting more renewable <ul><li>Renewable electricity   </li></ul><ul><li>90% by 2025 </li></u...
Where the 90% will come from –  existing, planned and potential generation October 2010
Renewable heat and fuel <ul><li>Case study: </li></ul><ul><li>Southern Pine - installed a briquette press turning MDF dust...
Renewable transport  <ul><li>Biofuels </li></ul><ul><li>Biodiesel – currently made in NZ from used cooking oil, rapeseed o...
Electric vehicles  <ul><li>EVs make sense for NZ now </li></ul><ul><li>Highly efficient users of fuel – which in NZ is mai...
NZ’s solar energy potential SeriesSource: IT Power & Southern Perspectives report for MED, 2009
Demand side opportunities <ul><li>Homes </li></ul><ul><li>Housing design to minimise energy use in new builds </li></ul><u...
NZ energy savings potential $4 billion Total savings  in 10 years   Residential  $1.6 billion Business  and  Primary produ...
Houses – we all live in one <ul><li>Third of electricity used in the home </li></ul><ul><li>Long term impact of investment...
The typical New Zealand house  <ul><li>NZ’s traditional light timber framed structures are very inefficient </li></ul><ul>...
First Light house – “eco bach” <ul><li>Highly insulated </li></ul><ul><li>Designed to maximise solar gain </li></ul><ul><l...
White ware and appliances <ul><li>Minimum Energy Performance Standards (MEPS) keeps the lowest performing appliances out o...
Business and transport <ul><li>Big opportunity for savings across the whole economy </li></ul><ul><li>Transport and busine...
Areas of potential  (by technology)
Transport efficiency in action  <ul><li>Downer New Zealand Ltd,  </li></ul><ul><li>Supreme Winner at the 2010 EECA Awards ...
Technology is only one part of the solution <ul><li>Who designs houses? </li></ul><ul><li>Who buys cars and drives them? <...
People
What influences energy use in the home? Transport Technology Behaviour Envelope Products Conservation Products Transport
How do we influence behaviour? <ul><li>Information </li></ul><ul><li>Incentives </li></ul><ul><li>Regulation </li></ul>
Example:  Providing the right information at the right time <ul><li>The average age of our light vehicles is 12.8 years ol...
Example:  Providing funding/incentives <ul><li>Warm Up New Zealand: Heat Smart </li></ul><ul><li>100,000 homes insulated i...
Co-benefits are key to engaging customers <ul><li>EECA research shows people are motivated by different things  </li></ul>...
Co-benefit examples <ul><li>Health and welfare are the two biggest residential co-benefits </li></ul><ul><li>Profitability...
Behaviour change needed for maximum benefits + = EFFICIENT TECHNOLOGY EFFICIENT BEHAVIOUR MAXIMUMBENEFITS
Behaviour change works <ul><li>Almost 2.4 million New Zealanders have seen Energy Spot </li></ul><ul><li>1 in 5 New Zealan...
The “co-benefits” of energy efficiency and renewable energy <ul><li>Energy security – Future proofing against limited chea...
The wider economic co-benefits <ul><li>Billions of dollars saved – reinvest into the economy </li></ul><ul><li>Improved pr...
Summary – a future view <ul><li>HOMES </li></ul><ul><li>Zero energy or energy positive homes are the norm </li></ul><ul><l...
 
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Energy consumption in our homes, businesses and workplaces: a future view

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Mike Underhill's presentation from the NERI Winter Lights Thought Leadership Forum held on 16th June 2011 in Dunedin, New Zealand.

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  • OUT-TAKE: Compared to most developed countries we use a high proportion of renewable energy
  • But when you look outside just electricity, the story changes – more than a third of our total energy is oil, and altogether 65% is fossil fuels.
  • If we look at where we use energy you can see that the oil is largely used in transport.
  • OUT-TAKE: - NZ’s electricity is mainly renewable
  • OUT-TAKE: We use electricity in a number of places but not much in transport (commercial and transport ??)
  • I am not sure if this graph refers to energy or electricity? VC to check
  • On average, a new fridge uses 30% less energy now (i.e. 2009-10 year, which is the latest year we have sales data for) than it did in 2002 (which is when MEPS and labelling were first introduced). Computers and consumer electronics are eating up a growing portion of our electricity bills – and that could double by 2020 according to estimates from the International Energy Agency
  • The average age of our light vehicles is 12.8 years old. In 2000, 23.8 percent of the light fleet was 15 or more years old, but by 2010 this had increased to 33.2 percent. What’s more, the average age of used imported vehicles — which make up almost half of the light vehicle fleet — has reached 14.4 years old Source: http://www.transport.govt.nz/research/Documents/The-NZ-Vehicle-Fleet-2010-Mar2011(2).pdf
  • Energy consumption in our homes, businesses and workplaces: a future view

    1. 1. Energy consumption in our homes, businesses and workplaces: a future view Mike Underhill, Chief Executive NERI Winter Lights 2011, 16 June 2011
    2. 2. The global energy challenge <ul><li>Peak oil / sustainability </li></ul><ul><li>Climate change </li></ul><ul><li>Pollution and other environmental concerns </li></ul><ul><li>Competing demand for resources (including land, water) </li></ul><ul><li>More expensive oil exploration to meet demand </li></ul><ul><li>Higher fuel prices </li></ul><ul><li>Price on carbon to combat climate change </li></ul><ul><li>Growing consumer pressure for low carbon goods </li></ul><ul><li>Strong investment in renewables globally </li></ul>CAUSE EFFECT
    3. 3. NZ – among the world’s leaders in renewable energy (But renewables still very much the minority source of energy for NZ)
    4. 4. Where our total energy comes from
    5. 5. Where we use energy
    6. 6. Where our electricity comes from
    7. 7. Where we use electricity
    8. 8. How the sectors fare Efficient use Renewable, low carbon Non efficient Non renewable, high carbon products industry homes transport businesses
    9. 9. NZ’s fossil fuel exposure <ul><li>More than half of all energy is fossil fuel – much of that used in transport </li></ul><ul><li>Transport fuel demand is highly inelastic – alternatives are limited </li></ul><ul><li>Export economy reliant on oil (agriculture/ fishing/forestry) </li></ul><ul><li>New Zealand’s distance from our export markets is a real or perceived risk (“food miles”) </li></ul><ul><li>Per capita GHG emissions are high – reputational risk for 100% Pure New Zealand </li></ul>
    10. 10. The challenge <ul><li>Replace fossil fuels with renewables </li></ul><ul><li>Use energy more efficiently, especially high carbon sources </li></ul>
    11. 11. Supply side opportunities – getting more renewable <ul><li>Renewable electricity </li></ul><ul><li>90% by 2025 </li></ul><ul><li>Geothermal, wind and hydro – existing technologies </li></ul><ul><li>Marine, biomass, solar – developing technologies </li></ul><ul><li>Renewable heat </li></ul><ul><li>Wood energy a cost-effective and viable replacement for coal </li></ul><ul><li>Renewable transport </li></ul><ul><li>Electric vehicles and first generation biofuels – viable now but price is a barrier </li></ul><ul><li>Advanced biofuels on their way </li></ul>
    12. 12. Where the 90% will come from – existing, planned and potential generation October 2010
    13. 13. Renewable heat and fuel <ul><li>Case study: </li></ul><ul><li>Southern Pine - installed a briquette press turning MDF dust into combustible briquettes for boiler fuel. Saves $180,000 a year generates $25,000 in revenue </li></ul><ul><li>Biomass could supply more than 25% (currently 8.5%) of the country’s energy needs by 2040 (BANZ Bioenergy strategy) </li></ul><ul><li>Wood from forest harvest and processing residues </li></ul><ul><li>Biogas from municipal, agriculture waste and food processing residues </li></ul><ul><li>Liquid biofuels </li></ul><ul><li>Direct geothermal energy for heating and cooling </li></ul>
    14. 14. Renewable transport <ul><li>Biofuels </li></ul><ul><li>Biodiesel – currently made in NZ from used cooking oil, rapeseed oil (canola) or tallow </li></ul><ul><li>EECA grants programme has kick-started biodiesel production in NZ </li></ul><ul><li>Bioethanol – made from NZ whey or Brazilian sugar cane </li></ul><ul><li>Ethanol – no excise tax applies (unlike petrol) </li></ul><ul><li>EECA has biofuels sustainability criteria on its website – includes CO2 reduction and source of feedstock </li></ul><ul><li>Electric vehicles </li></ul>
    15. 15. Electric vehicles <ul><li>EVs make sense for NZ now </li></ul><ul><li>Highly efficient users of fuel – which in NZ is mainly renewable </li></ul><ul><li>Dedicated infrastructure unnecessary in short term </li></ul><ul><li>They can work with our 230 Volt domestic supply </li></ul><ul><li>They fit New Zealanders’ travel patterns </li></ul><ul><ul><li>90% of NZ vehicles travel less than 84km a day </li></ul></ul><ul><ul><li>For main urban areas less than 69km </li></ul></ul><ul><ul><li>52% of NZ households have 2 or more vehicles </li></ul></ul><ul><li>CAENZ study shows for 390,000 EVs on road by 2025 will require only an extra 180 MW capacity </li></ul><ul><li>Price remains a barrier </li></ul>
    16. 16. NZ’s solar energy potential SeriesSource: IT Power & Southern Perspectives report for MED, 2009
    17. 17. Demand side opportunities <ul><li>Homes </li></ul><ul><li>Housing design to minimise energy use in new builds </li></ul><ul><li>Insulation, double glazing, draught-proofing retrofits </li></ul><ul><li>Appliance and lighting efficiency </li></ul><ul><li>Behaviour change </li></ul><ul><li>Businesses </li></ul><ul><li>Appliance and lighting efficiency </li></ul><ul><li>Tuning boilers, continuous commissioning HVAC </li></ul><ul><li>Co-generation </li></ul><ul><li>Motorised systems </li></ul><ul><li>Transport </li></ul><ul><li>Fuel economy improvements </li></ul><ul><li>Public transport / modal shift </li></ul><ul><li>Driver behaviour </li></ul>
    18. 18. NZ energy savings potential $4 billion Total savings in 10 years Residential $1.6 billion Business and Primary production $2.5 billion Dwellings $0.5 bn Private cars $1.1 bn Heavy Industry $0.2 bn Food Production $0.4 bn Business transport $1.1 bn Tourism $0.1 bn Commercial Buildings $0.3 bn Other Business $0.5 bn
    19. 19. Houses – we all live in one <ul><li>Third of electricity used in the home </li></ul><ul><li>Long term impact of investment </li></ul><ul><li>Has an impact on health and well-being – huge losses for society could be avoided </li></ul><ul><li>Many NZ houses are substandard </li></ul>
    20. 20. The typical New Zealand house <ul><li>NZ’s traditional light timber framed structures are very inefficient </li></ul><ul><li>80 kWh/m 2 /year in NZ </li></ul><ul><li>Denmark has target of 16 kWh/m 2 /year </li></ul><ul><li>Examples of poor performance include </li></ul><ul><ul><li>Insulation </li></ul></ul><ul><ul><li>Air tightness </li></ul></ul><ul><ul><li>Glazing </li></ul></ul><ul><ul><li>Alignment </li></ul></ul><ul><ul><li>Heating </li></ul></ul><ul><ul><li>Lighting </li></ul></ul><ul><li>Our cold damp houses are a major health hazards as well as really expensive to heat </li></ul>
    21. 21. First Light house – “eco bach” <ul><li>Highly insulated </li></ul><ul><li>Designed to maximise solar gain </li></ul><ul><li>Solar water heating and photovoltaics </li></ul><ul><li>LED lighting </li></ul><ul><li>Energy monitoring system </li></ul>
    22. 22. White ware and appliances <ul><li>Minimum Energy Performance Standards (MEPS) keeps the lowest performing appliances out of the NZ/Aus market </li></ul><ul><li>Labelling helps consumers compare efficiency (energy rating) or buy the top performers (ENERGY STAR) </li></ul><ul><li>The average new fridge uses half the energy it did in 1990. </li></ul><ul><li>Computers and consumer electronics are making up a growing portion of our electricity bills – expected to double by 2020 </li></ul><ul><li>Standby can use 400 Watts continuously </li></ul>
    23. 23. Business and transport <ul><li>Big opportunity for savings across the whole economy </li></ul><ul><li>Transport and business sectors offer biggest savings </li></ul><ul><li>And business transport has huge potential – 18 PJ by 2015 </li></ul><ul><li>Some savings will be BAU gains </li></ul><ul><li>EECA’s business programmes could achieve about 14PJ by 2015 </li></ul><ul><li>Significant increase from current levels – current rate = 5PJ by 2015 </li></ul><ul><li>Example: Commercial refrigeration uses 10.5 PJ p.a. – estimated 15% savings available </li></ul>
    24. 24. Areas of potential (by technology)
    25. 25. Transport efficiency in action <ul><li>Downer New Zealand Ltd, </li></ul><ul><li>Supreme Winner at the 2010 EECA Awards </li></ul><ul><li>Included GPS initiative for fleet, introduction of driver behaviour programme </li></ul><ul><li>Projected savings $3 million and 12,000 tonnes of CO2 a year </li></ul><ul><li>Payback for most opportunities less than one year </li></ul><ul><li>Additional benefits - driver training also improves staff and public safety, reduces property and vehicle damage, carbon emissions and insurance premiums </li></ul><ul><li>Enhanced business reputation </li></ul>
    26. 26. Technology is only one part of the solution <ul><li>Who designs houses? </li></ul><ul><li>Who buys cars and drives them? </li></ul><ul><li>Who chooses whether to turn their lights off when they leave the room? </li></ul><ul><li>Who decides the priorities for investment in a company? </li></ul>
    27. 27. People
    28. 28. What influences energy use in the home? Transport Technology Behaviour Envelope Products Conservation Products Transport
    29. 29. How do we influence behaviour? <ul><li>Information </li></ul><ul><li>Incentives </li></ul><ul><li>Regulation </li></ul>
    30. 30. Example: Providing the right information at the right time <ul><li>The average age of our light vehicles is 12.8 years old. </li></ul><ul><li>33% of light vehicles are 15 or more years old </li></ul><ul><li>The average age of used imported vehicles — which make up almost half of the light vehicle fleet — has reached 14.4 years old </li></ul>It’s important to influence this long-term decision – e.g. through vehicle fuel economy labels at point of sale.
    31. 31. Example: Providing funding/incentives <ul><li>Warm Up New Zealand: Heat Smart </li></ul><ul><li>100,000 homes insulated in two years </li></ul><ul><li>Another 100,000 over the next two years </li></ul>
    32. 32. Co-benefits are key to engaging customers <ul><li>EECA research shows people are motivated by different things </li></ul>Sustainable future Warm comfortable home $$$$$$ Healthy home
    33. 33. Co-benefit examples <ul><li>Health and welfare are the two biggest residential co-benefits </li></ul><ul><li>Profitability and branding are the big business co-benefits </li></ul><ul><li>Safety is the big transport co-benefit </li></ul>The co-benefits with the greatest impact are often emotional
    34. 34. Behaviour change needed for maximum benefits + = EFFICIENT TECHNOLOGY EFFICIENT BEHAVIOUR MAXIMUMBENEFITS
    35. 35. Behaviour change works <ul><li>Almost 2.4 million New Zealanders have seen Energy Spot </li></ul><ul><li>1 in 5 New Zealanders have taken action as a result of the Energy Spot </li></ul>
    36. 36. The “co-benefits” of energy efficiency and renewable energy <ul><li>Energy security – Future proofing against limited cheap supplies of fossil fuels </li></ul><ul><li>Reduced dependence on volatile global oil prices </li></ul><ul><li>Sustainabilty - efficiency means resources go further </li></ul><ul><li>Reduces the overall growth and peak demand for electricity </li></ul><ul><li>Defers the need for new investment </li></ul><ul><li>Reduces future wholesale electricity price </li></ul><ul><li>Improved health and welfare of our citizens </li></ul><ul><li>Helps meet international climate change obligations </li></ul>
    37. 37. The wider economic co-benefits <ul><li>Billions of dollars saved – reinvest into the economy </li></ul><ul><li>Improved productivity and competitiveness of our businesses </li></ul><ul><li>International competitive advantage </li></ul><ul><li>Combat ‘food miles’ </li></ul><ul><li>Globally differentiate ourselves with our ‘brands’ of fresh water, fertile land and renewable energy </li></ul>
    38. 38. Summary – a future view <ul><li>HOMES </li></ul><ul><li>Zero energy or energy positive homes are the norm </li></ul><ul><li>Small scale renewable energy is affordable </li></ul><ul><li>People choose the most efficient appliances and only use them when needed </li></ul><ul><li>Smart technology helps people save energy </li></ul><ul><li>BUSINESSES </li></ul><ul><li>Thriving, productive business sector resulting from uptake of energy efficient and renewable technologies </li></ul><ul><li>NZ exports differentiated in the market for their low carbon production </li></ul><ul><li>Renewables used for process heat </li></ul><ul><li>Saving energy part of everyday office/workplace culture </li></ul><ul><li>TRANSPORT </li></ul><ul><li>Transition from current system dominated by imported oil to predominantly home-grown and renewable fuelling </li></ul><ul><li>Behaviour change, improved technology, renewable fuels all play a role </li></ul>

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