Simon Mackenzie - Vector

Vector Group General Manager, Simon Mackenzie. Photo / NZPA

Vector chief executive Simon Mackenzie says change is happening faster than people realise. "What we are also seeing is the cost of technology drop ... opening the way to explosive growth of distributed solar generation of electricity."

The convergence between energy, telecommunications and ICT is having profound effects on Vector and prompting exciting soul-searching on the future of the Auckland-based electricity and gas networks.

Mackenzie has bought Navman founder Peter Maire on board to spark future-focused thinking on technological developments.

Vector was a front-runner in the use of smart metering in New Zealand. Mackenzie says today's low-cost photovoltaic solar panels combined with improved battery storage "makes solar usable 24 hours a day rather than just when the sun shines".

He's walking the talk himself, "I've got full solar technology and a battery at my house plus LED lighting."

In a note to staff on his return from InterSolar in San Francisco, Mackenzie said distributed solar generation of electricity is poised for explosive growth. He noted the action appears to be in the types of distributed commercial and residential systems that are increasingly dotting US roofs rather than large, utility scale projects.

He believes widespread use of distributed generation resources will be fundamentally disruptive to the business models of electricity utilities. Vector is intensively engaged with Auckland Council on the Unitary Plan looking at "how do we rise to the challenge from an infrastructure standpoint, providing the world's most livable city?" Mackenzie says Vector has already built substations that look like a residential house to enhance the living environment. And it is working with Waterfront Auckland. "We did a solar solution for Shed 10 along the whole waterfront precinct."

One issue that bothers Mackenzie is the way offshore parties can structure their investments to gain tax advantages not available to domestic players.

"There is a real concern over the way in which the thin cap rules allow foreign investors to acquire assets, whilst New Zealand companies are disadvantaged."

Simon Mackenzie says Lifting

Simon Mackenzie says "Lifting the quality of media, general communication and reporting on issues and events," is the one change he would make to improve New Zealand. "In addition to this establishing large scale targeted and well-funded research and development centres in the agricultural and technology space."

His top three business priorities for the next 12 months are:

• Growth
• Technology and innovation
• Regulation

His best achievement in the past 12 months: Launching a number of technology solutions to customers. The single biggest factor that would assist Vector to remain internationally competitive from New Zealand is scale and the cost of capital competitiveness.