Government must encourage energy efficiency to reduce power prices
- Ecobulb
- Aug 9, 2024
- 2 min read
Updated: Aug 21
Media Statement from Ecobulb Limited
August 9, 2024
Government must encourage energy efficiency to reduce power prices
Energy efficiency must be part of the solution to high electricity prices, an energy
efficiency expert says.
Ecobulb managing director Chris Mardon says that householders and businesses
should be incentivised to invest in low-energy devices such as LED lights and heat
pumps, which use less electricity than old technologies.
“Replacing all 29 million inefficient light bulbs in New Zealand homes with LEDs would
reduce the electricity network winter peak load by 340MW and consumer power bills by
$176 million per year,” Mardon says.
Incentives could be applied through the Commerce Commission, the Energy Efficiency
and Conservation Authority (EECA), or the Electricity Authority.
Mardon says homeowners and businesses are no longer encouraged to invest in
efficient devices because of changes to government policy.
“In recent times we have seen a dismantling of incentives for energy efficiency. Gone
are the low-fixed charge regulations and the $1 billion Government Investment in
Decarbonising Industry (GIDI) Fund, which incentivised installation of efficient lighting,
heating and electric motors for commercial buildings. And in May 2024 the government
cancelled EECA’s remaining $156 million funding for residential LEDs, low-cost energy
efficiency measures and heat pump water heaters.
“Energy efficiency investment is now almost dead in the water, with utilities much more
focussed on building new generation or hi-tech load shifting, neither of which reduces
energy consumption during extended periods of tight supply such as now.
“For the sake of consumers and the New Zealand economy, Ecobulb strongly
encourages the government and its regulators to restore incentives for energy
efficiency.
“Rolling out various low-cost energy saving measures to 1.5 million New Zealand
homes would save kiwis $1 billion a year in power, with a four-month payback based on
energy savings.
“Upgrading inefficient lighting in SMEs with efficient LEDs would save the equivalent
amount of electricity used by the Nelson/Marlborough region, at a third of the cost per
MWh of electricity generated by building renewable electricity generation, while also
delivering valuable peak load reductions to help keep the lights on in winter.
“Energy efficiency is a no-brainer, and not just because it lowers energy volumes and
power bills.
“Replacing all inefficient light bulbs in New Zealand homes with LEDs would reduce
carbon emissions equivalent to taking all cars off New Zealand roads for a year, and
lower a Hamilton-sized city-worth of peak load—delivering a Net Present Value to New
Zealand Inc. of $2.02 billion at an 18:1 benefit-to-cost ratio,” Mardon says.
For more information
Chris Mardon, 021 041 2981, chris.mardon@energymad.com
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