PLACE IMAGE HERE Energy efficiency policy in New Zealand Country Report to the APEC Expert Group Energy Efficiency and Conservation September 2010 Sendai Japan

Significant changes in policy context Review of ‘New Zealand Energy Strategy’ & ‘New Zealand Energy Efficiency and Conservation Strategy’ –Completed Electricty Industry Bill is at Committee stage and expected to be passed by 1 October 2010 –Move electrical efficiency functions (and funding) from Electricity Commission to EECA –Support for demand response and smart meters

Energy efficiency trends Energy Use to GDP Ratio March 2001 – 2008  Economy-wide energy use increased by 73 PJ (16.2%), from 454 PJ to 527 PJ, 2.2% pa increase. During the same period New Zealand’s GDP increased by a total of 27.2% or 3.5% pa and the population rose by 9.8%.  Energy to GDP ratio declined by 8.6% or 1.3% pa from 4.26 TJ/$ million to 3.89 TJ/$ million  Per capita energy use followed a rise from 115 GJ/capita in 1995 to a high of 125 GJ/capita in 2004, but has since fallen slightly to 124 GJ/capita in Decomposition Analysis March 2001 – 2008  Energy efficiency improvements offset 46 PJ of New Zealand’s energy use out of which nearly 20 PJ came from electricity  If energy efficiency had not improved, New Zealand’s energy use would have been higher by 8.7% to 573 PJ instead of observed 527 PJ in  About 40% of the increase in energy services enjoyed was due to efficiency gains.

EE Potentials Commercial, 5 PJ Passenger Transport, 45 PJ Agriculture, 3 PJ Residential, 10 PJ Industry, 15 PJ Freight Transport, 18 PJ NZ Energy Use Savings Potential by Sector to 2020 (95 PJ/pa)

Warm Up New Zealand: Heat Smart (WUNZ:HS) Home insulation and clean heating retrofit programme launched in 2009 $NZ323m towards retrofits in over 180,000 properties over four years (some 900,000 homes have substandard insulation) At 30 June 2010 ……57,908 homes were retrofitted with either insulation, a clean heater or both. Auditing of the installers work, (10% of all work) has ensured the quality of the work and helped up-skill industry Competitive tendering ensures price gouging is not occurring

Proposed for regulation 1 December 2010 –New minimum energy performance standards (MEPS) for set top boxes, close control air conditioners, external power supplies & commercial chillers –Revisions to: MEPS and energy rating labels for heat pumps; revised energy rating labels for refrigerators & freezers; MEPS for distribution transformers. Proposed for consultation commencing October 2010: –compact fluorescent light MEPS –televisions energy rating labels and MEPS Gas hot water heater MEPS 1 April 2011 Equipment Energy Efficiency (E3) Forward Work Plan

EECA programme mix is cost effective

Energy Spot The ENERGY SPOT television series spearheads EECA’s ENERGYWISE campaign. Over 30 different 60- second episodes have been produced, taking a relevant energy related topic each week to New Zealanders

Energy Spot (So far) Reached over 96% of our “all people 18+ target”, more than 3 million viewers Achieved an average frequency of more than 40 times On average we reach 60% (1.8 million viewers) of our target each week, with a total researched recall of 57% Those who have seen The EnergySpot, 33% have taken action to improve their energy use Over 1 million unique visitors to the new more interactive EECA websites.

Thank You