Power efficiency in the spotlight

New Zealand is falling behind in energy efficiency targets and Energy Minister David Parker is examining whether to take a new approach to promoting the better use of power.

The country has been operating under a "National Energy Efficiency and Conservation Strategy" for the past five years, and Parker has to decide this month to replace - or continue - with it.

Its success has been mixed, with levels of energy efficiency improvements falling well short of targets.

The national strategy had two high-level targets - a 20 per cent improvement in energy efficiency by 2012 and a 22 per cent increase in use of renewable energy.

But soaring energy demand has meant these targets are falling well behind schedule.

As of 2004, there had been a cumulative estimated 2 per cent improvement in energy efficiency.

While renewable energy use had grown and was much closer to target, so too had the increase in use of non renewable energy.

Energy Efficiency and Conservation Authority chief executive Heather Staley said it was frustrating to still see scepticism among business leaders about the value of pursuing energy efficiency.

Despite showing numerous case studies of companies having saved large amounts of money through better use of energy, some business leaders felt these must have been "special cases", said Staley.

"It's profit lost for owners," she said.

"We haven't been able to get the commitment from the most senior levels of the New Zealand economy."

Even big power users like the aluminium maker Comalco was still finding ways of saving huge amounts on its energy bill, meaning that it was not just the "low hanging fruit" that had been found.

Mr Parker will decide whether to replace the energy efficiency strategy by the end of this month.

If he does, consultation on any replacement plan is due to begin in April or May.