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4. What Changes to the Energy Efficiency and Conservation Campaign Should Be Considered in Case the Need Arises in Future for a Similar Campaign?


This Document is Archived


Summary of Submissions

Corydon Consultants Ltd
[ Last Updated 20 February 2006 ]


Summary of Key Points

  • Analysis of the 2001 campaign and its results to identify where effort should be directed in future was recommended.
  • Improve access to demand information for consumers and those charged with encouraging conservation.
  • Problems with the measurement of savings need to be addressed.
  • A range of specific energy-saving measures were suggested.
  • There is a need to focus on achieving long-term energy consumption savings.

Support for the Savings Campaign

  • Several submissions expressed support for the Government-initiated savings campaign. They argued that such campaigns offer the only viable demand side strategy under the current pricing system, and therefore the Government's role in the 2001 campaign was warranted given that no other sector has an economic incentive to do so.

Alliant International, Contact, Federated Farmers, Infratil, Robbie Morrison, Network Tasman

  • Three submitters said they considered the campaign was effective and no significant changes would be needed in future (Alliant International, TrustPower, M-co).

Explore the Lessons of 2001

  • The results of the 2001 campaign should be analysed to identify successful demand reduction initiatives, and the reasons for their success.
  • Factors to consider include which market sectors responded best and which market sectors had the best opportunity to respond.
  • Also to be considered is the extent to which demand reductions resulted from the use of embedded generators. This should help determine where the real savings occurred and which specific users could be the focus of future campaigns.
  • Refer to section 3.9 (Contingency planning). The recommendations to develop contingency plans and establish early warning triggers were made in light of the lessons from winter 2001.

Energy Management Assn, Health Sector EBG, Robbie Morrison, WEL Networks

Improve Quality of Demand Information Available

  • Access to better demand information (for consumers and those charged with encouraging conservation) would help organisations such as EECA and retailers with managing demand. EECA reported difficulty in targeting demand side management (DSM) strategies because of a lack of appropriately detailed and sector-specific electricity use and savings data.

"The M-co data on energy use patterns over the campaign was not able to distinguish patterns of electricity demand by sector. This information would have been useful in targeting specific sectors to reduce demand" - EECA.

"Improving access to demand information would help to manage demand. Internet-accessible time of use metering should be installed on all Government electricity supplies" - EECA.

"Most people have a lack, or distorted view, of information on their energy use. Time of day monitoring and actual use data for each part of a site would lead to more effective decision making. More information on the likely consequences of not reducing demand may have motivated more users to make savings" - Energy Management Association.

  • Refer to section 3.7 (Market information) for more discussion on this issue.

Problems with the Measurement of Savings during Winter 2001

  • Several submissions highlighted problems with the measurement of energy savings. For instance, energy use was compared with equivalent weeks in previous years but no adjustment was made for temperature differences between years (which would have affected electricity demand). It was suggested that many of the "savings" reported in the media actually occurred as a result of the natural decline in demand associated with the arrival of warmer weather.
  • The calculation of savings was done on a regional basis, rather than looking at individual demand sectors, which made it impossible to tell which consumers were actually making savings. Once again, this raises the need for better information on demand patterns.

"The M-Co [savings calculation] methodology... failed to account for differences between different customer types. In Waikato, for example, residential customers achieved their 10% target, industry was virtually on budget, the commercial customers made a significant contribution to their target and the farming customers were significantly over the target" - WEL Networks.

Energy Management Assn., Network Tasman, Pan Pac, WEL Networks

Specific Energy Saving Suggestions

  • Improve access for consumers to advice, e.g. use an interactive advice-based call centre, as opposed to a simple electronic "mail box" system as was used in 2001 (EECA, engenius solutions).
  • Offer greater energy or fuel conservation incentives to consumers (similar, for example, to Australia's has "green fuel" programmes) - (Norske Skog).
  • Encourage consumers to produce some of their own energy (David MacClement).
  • Reduce the hours of street lighting (engenius solutions, David Renouf).
  • Large energy-buying groups could use their size and geographic spread to co-ordinate efficiency strategies possible only on a larger scale, e.g. bulk buying. This might enable some evening of loads between different generators (Health Sector EBG).
  • Higher energy prices are required in order to encourage conservation and alternative power use. Pricing mechanisms that provide more incentives for those willing to achieve savings are needed (Health Sector EBG, David MacClement).
  • In some commercial buildings, the owners control heating, ventilating and air-conditioning while the tenants are responsible for electricity costs. If those who bore the costs had control over these services this would encourage energy efficiency (Energy Management Assn.).
  • The Government should request all retailers to demonstrate that they have market products that encourage specific groups of consumers to conserve energy (particularly in dry years). If those proposals are not forthcoming or will not remove the risk of the need for future Government intervention, then the Government should explore structural policy changes to ensure all consumers are encouraged to conserve energy in dry years (MEUG, Business NZ).
  • Contact's cross-submission argued that all retailers have a strong financial incentive to prepare themselves for a dry year situation, and thus regarded the foregoing suggestion as unnecessary.

Need for a Long-Term Focus

  • The goal of energy conservation initiatives should be to achieve long-term savings rather than just focusing on emergency responses. For example, new buildings should be constructed to an energy efficient standard. Basic energy management practices need to become the norm in New Zealand culture, rather than being seen as a one-off response to emergency situations.

Energy Management Assn., Health Sector EBG, David MacClement, David Renouf, Waikato DHB


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