Jeanette Fitzsimons MP
Government Spokesperson on Energy Efficiency and Conservation
11 October 2007 Media Statement

Families, drivers, business and climate are energy efficiency winners

The launch of the New Zealand Energy Efficiency and Conservation Strategy (NZEECS) is great news for families, drivers, business and efforts to tackle climate change, says the Government Spokesperson on Energy Efficiency and Conservation, Jeanette Fitzsimons.

Highlights include:
• Up to 180,000 insulation, clean heat or solar hot water upgrades
• More work to improve the efficiency of appliances to realise cumulative savings worth $2.7 billion for Kiwi consumers by 2025
• Over $8 million for energy efficiency programmes to improve the competitiveness of business; including the primary production and tourism sectors, and to boost the uptake of wood for heating
• A new target to improve the fuel economy of vehicles entering the fleet by around 25 per cent, saving 441 million litres of fuel, by 2015
• Increased emphasis on transport demand management and clear priority given to public transport and walking and cycling

“This is an action plan to make a real difference to Kiwi families so that they can live in warmer, drier, healthier homes that cost less to heat; for business to become more competitive; and to save money and emissions in the transport sector,” says Jeanette Fitzsimons.

“The Strategy is set to deliver annual non-transport energy savings of 30 PetaJoules per year by 2025. That’s the same as the electricity used by 30 cities the size of Nelson in 2006 or 18 months of coal-fired production from Huntly, at 2006 levels. In transport, cumulative savings by 2025 will be around 4.8 billion litres of fuel.

“Energy efficiency and conservation programmes represent great value for money. Our commercial programmes demonstrate good business nous and between 2001 and 2005 delivered $88 million in energy savings. But the benefits also extend to health and air quality improvements and emissions savings. A recent study found a combined health and energy savings return of $2.20 for every dollar spent on home energy efficiency retrofits.

“But we must see this strategy as just the start. More investment and the involvement of all New Zealanders will be needed over time if we are to make the most of the potential savings on offer,” Jeanette Fitzsimons says.

Key actions in the New Zealand Energy Efficiency and Conservation Strategy

The New Zealand Energy Efficiency and Conservation Strategy (NZEECS) is an action plan to:

• Promote sustainability as part of New Zealand’s national identity
• Improve the quality of life for New Zealand families
• Drive economic transformation in business

It is an action plan for many of the programmes in the New Zealand Energy Strategy and its programmes are complementary to the Emissions Trading Scheme in achieving emissions reductions. It targets actions in five areas:

Energywise homes
Warmer, drier, healthier homes with reduced energy costs for Kiwi families

• 70,000 interest free loans for insulation, energy efficiency or clean heat retrofits by 2015
• 72,200 insulation, and 4,000 clean heat retrofits for low income families by 2012
• 15,000 – 20,000 additional solar water heating systems by 2010
• A programme to retire 450,000 energy-wasting fridges over 20 years
• A Home Energy Rating Scheme (HERS)

Energywise business
More energy efficient and competitive businesses using more renewable energy and emitting less carbon dioxide

• Expanded grant, audit and technology programmes (compressed air and efficient electric motors) for New Zealand businesses, including $700,000 for programmes targeting the export sector
• A new $850,000 energy efficiency workers’ training package to be developed with stakeholders such as the CTU and Business New Zealand
• Up to an additional 9.5 PJ per year of energy from woody biomass or direct-use geothermal by 2025
• Specific partnership programmes for farms, horticulture and forestry to enhance the uptake of energy efficiency and conservation measures and renewable energy to improve competitiveness and help manage greenhouse gas emissions (see also the Sustainable Land Management and Climate Change Plan of Action)
• Specific programmes to partner with the tourism sector to increase the uptake of energy efficiency and renewable energy to make it more competitive and attractive to overseas visitors

Energywise transport

• Per capita transport emissions halved by 2040
• New Zealand to be a world leader in the uptake of electric vehicles
• Average fuel economy to be improved by around 25 per cent by 2015 (170g/km of CO2 , which equates to approximately 7.4l/100km, petrol, and 6.5l/100km, diesel)
• A 10 per cent reduction in single occupancy vehicle trips by 2015
• Increased emphasis on transport demand management and clear priority given to public transport and walking and cycling
• 80 per cent of vehicles to be capable of using 10 per cent biofuel blends or to be electric powered by 2015
• An investigation of options, including electrification, for improving the efficiency of the North Island main trunk line

New Zealand’s efficient and renewable electricity system

• 90 per cent of electricity generated from renewable sources by 2025
• Improved consumer participation
o Better arrangements for customer bidding and smart meters
• Programmes to support the uptake of distributed generation
• Action to promote investment in renewables and energy efficiency by energy companies

Government leading the way

• Carbon neutral public service – six core public sector agencies to be carbon neutral by 2012 with the remaining 28 agencies having plans in place to do likewise by then. Enabling initiatives include:
o 10 per cent reduction in energy use per FTE by 2012
o 25 percent fuel economy improvement in public service vehicle fleets by 2012
• Support for local government in delivering regional transport and energy strategies and improved urban design

NZEECS programmes are forecast to deliver the following savings:

Stationary energy (electricity plus industrial processes and heat)
• 30 PJ of energy, 9.5 PJ of extra renewable energy for industrial and heating purposes per year plus 5-6 million tonnes of emissions savings per year by 2025

Transport
• Cumulative savings of 4.8 billion litres of fuel, 175 PJ of energy and 11.8 million tonnes of emissions by 2025

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