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Businesses and households to save from new energy plans

Businesses and households to save from new energy efficiency initiatives

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions.

“The energy sector, specifically transport and industrial heat, are two key areas where energy efficiency initiatives have the potential to save thousands of dollars for businesses and reduce carbon emissions,” Mr Bridges says.

“Businesses use around 70 per cent of New Zealand’s total energy, which is worth around $8 billion each year.

“In many cases the main barrier preventing businesses and consumers from taking action is a lack of awareness and information.

“The three initiatives to be run by the Energy Efficiency and Conservation Authority (EECA) will bridge that gap through awareness campaigns, energy audits, training workshops and industry partnerships to improve heat processes and fuel efficiency.

“With good information, businesses can make smart choices. The initiatives will more than pay for themselves through direct savings. There are also a number of co-benefits like emission reductions, and increased productivity and competitiveness.”

“From an investment of $3.8 million, we expect businesses and households to be better off by up to $30 million over the lifetime of the investments.

“While modest, these initiatives will help demonstrate how efficient energy use can save money, boost productivity and reduce emissions.

“Transitioning to a more energy efficient and lower emissions economy is part of the Government’s Business Growth Agenda.”

The three initiatives are:

Energy efficient meat and dairy plant initiative
EECA will work with meat and dairy plant operators - the biggest users of industrial heat - to identify efficiency opportunities such as improvements to heat recovery processes, boiler tuning and, where economic, fuel switching (e.g. from coal to wood).

The Government will spend $750,000 over two years with industry expected to match or better this funding.

The initiative is expected to deliver up to $700,000 dollars’ worth of energy savings per year, and reduce carbon emissions by 7,000 tonnes per year.

Expansion of the Heavy Vehicle Fuel Efficiency Programme
The heavy vehicle sector consumes approximately 20 per cent of all transport energy - about one billion litres of diesel per annum – and there is potential for fleet operators to save up to 15 per cent of their fuel use.

The Government will spend $1.1 million to double EECA’s current Heavy Vehicle Fuel Efficiency Programme to reach an additional 150 small to medium sized vehicle fleets over three years.

The programme is expected to deliver around $1.2 million of diesel savings a year, and reduce carbon emissions by approximately 7,500 tonnes a year.

Fuel efficient tyres initiative
Private vehicles are responsible for about 10 per cent of New Zealand’s greenhouse gas emissions.

With over three million cars on our roads, increased uptake of fuel efficient tyres represents a significant opportunity to reduce emissions at a national level.

EECA will work in partnership with industry to run an information campaign to increase consumer awareness and uptake of fuel efficient tyres.

The Government will spend $2 million over two years. The initiative is expected to save approximately 2.5 million litres of fuel each year, and reduce carbon emissions by approximately 6000 tonnes a year.

Ends

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