Be efficient and save money

By WARREN GAMBLE

One way to fix the country's energy problems is to build more power stations. Another is to make better use of the energy New Zealand already has. In other words, to stop wasting it. The first path gets the most attention, particularly with electricity shortages looming.

It seems obvious: If New Zealand hasn't enough power to get through winters when nature doesn't fill the hydro lakes, increase the supply with more power plants running on different fuels.

But there are vocal advocates for the unsexy second way - energy efficiency. It does not mean living permanently in dimly lit houses or suffering short showers, but taking measures across the country's factories, shops and homes, such as better insulation, smarter technology and better management.

Supporters say it is a way to reduce the threat of future shortages and save on power bills, protect the environment and even improve health.

It may sound too good to be true, and it does not have the solid reassurance of gleaming new turbines, but energy efficiency could turn out to be just as important in the long term.

New Zealanders have been used to cheap, plentiful energy for at least 30 years, thanks to hydro power and the Maui gas field, now in the last few years of its life.

Unlike other countries which have more expensive energy, it has meant there has been little concern on how we use power. But businesses, and to a lesser extent homeowners, are now realising there is money to be made by more efficient use of power.

Auckland villa owner Russell Baillie is an energy services engineer for the Energy Efficiency and Conservation Authority (EECA) and a self-confessed preacher on the subject. He put his beliefs into practice when relocating one of Auckland's typical, famously draughty early-1900s villas from Remuera to Sandringham 20 months ago.

Using thicker than minimum standard of insulation polyester in ceilings and floors, a woodburner with a wetback which heats the water in winter, and roof solar panels which heat the cylinder in summer, plus a range of smaller measures such as a timer on the heated towel rail, the home uses about half the power of an average New Zealand home.

Baillie spent around $8000 on the energy improvements. Putting aside his job and the potential to recoup that money in the long term through lower power bills - the monthly average for the family of four is around $60 - Baillie says his main motivation was a comfortable home.

There is no carpet on the wooden floors, but the heating and insulation means the house is at least 10 degrees warmer than others of similar vintage.

Across New Zealand there are around 500,000 homes built before building regulations came into place in 1977, which required measures like insulation. But even in the present building code, the insulation is a minimum standard.

EECA estimates New Zealand homes leak $1 million of energy each week through poor insulation, badly fitting windows, even unsuitable curtains (those which reach the floor and have a separate lining are warmer).

It leads to homes which are below World Health Organisation temperature guidelines for good health, particularly for people with respiratory conditions.

EECA, local councils and community trusts have targeted lower-income housing for free insulation retrofits in the past few years. The scheme is open to low-income families, particularly those with a history of respiratory illness. Anecdotal evidence in areas such as South Auckland has shown a lower incidence of asthma in homes which have been insulated properly.

This week the Government announced another $3 million for the scheme, enough to insulate another 4400 homes. It is a drop in the bucket, but the authority, which has had its budget tripled in the past five years to a still tiny $14 million, says it demonstrates the virtuous circle of energy efficiency - improved health, less power demand, lower bills.

Some new power plants will be needed in a growing economy, but some officials believe the potential efficiency gains are so great that even with moderate growth New Zealand can meet demand using extra energy from renewable sources such as hydro, wind and solar power.

That scenario is what the chief executive of EECA, Heather Staley, says gets her out of bed in the morning. The authority produced a national strategy in 2001 which sets targets of a 20 per cent improvement in energy efficiency by 2012 and increasing the supply of renewable energy by around 30 petajoules - enough to supply Nelson with power for a year.

Staley is aware of the challenges in getting people to change behaviour. With a small budget and a difficult selling job, the authority has taken a subtle and strategic approach to get businesses and homeowners on board.

In industry it has targeted the largest 300 energy users and gets people such as Baillie to talk to them about energy efficiency. The biggest selling point is money. Staley says one bank's newly appointed energy manager cut its power bill by a quarter after discovering it was getting bills for properties it no longer occupied.

In the past three years 11 companies have used EECA's subsidised energy audits to cut their bills by up to 40 per cent. Some have discovered the benefits for themselves.

The Warehouse cut its energy use in half, saving about $3 million a year. The savings flowed from innovative use of technology, including time-of-use meters linked to a central office which allowed the chain to monitor power use in all its stores and make improvements.

In downtown Auckland, the 40-storey Royal and Sun Alliance building has won awards for its energy efficiency. The high-rise office complex is just over three years old, so its design already included energy-saving features such as double-glazing, but fine-tuning of air-conditioning and heating, and intensive monitoring with 85 meters, have led to energy savings of several hundred thousand dollars.

Despite occupancy increasing by 20 per cent in the past two years, the building's energy use is down by 5 per cent. For large industrial and commercial users, there could be a brave new and even cheaper energy model in sight. The densely named demand-side participation model allows power consumers to be paid for power they save in times of peak electricity prices.

In other words, a power retailer faced with soaring prices could ask a large user to reduce its load and would pay the company for that. Some enthusiasts for this model envisage a residential version, where homeowners allow power companies to turn off designated appliances remotely during peak price times in return for a cheque.

The system would require time-of-use meters, which experts say are cost-effective now for large users and will become increasingly so for homeowners as technology improves and energy prices rise.

But again, it could be a hard sell to the residential sector, which makes up a third of the country's electricity demand. Energy efficiency chief Staley says there are more subtle ways to get the message through.

The authority's energy rating requirement for new whitewear appliances, including a rating label, is effectively phasing out inefficient products, although that will take between 10 and 15 years. The review of the Building Act in the wake of the leaky homes crisis will also provide a better framework for energy efficiency.

The authority is trying to develop best-practice guidelines but is facing legal action from the concrete industry worried about its effects.

Staley says the best outcome for householders and the country is to have warm, dry homes which make the best use of energy. She says the looming shortage is focusing people on conservation, rather than efficiency, which is far more sustainable in the long run.

"Efficiency is about having every comfort you want and not going without, at the lowest price."

How to save energy at home:

Under $50:

* Install a water-efficient showerhead

* Fill gaps in your ceiling insulation

* Fit shields for draughts and rain on external doors

* Insulate the metre of hot water pipe nearest the hot water cylinder

* Put compact fluorescent light bulbs in the light fittings you use the most

More expensive:

(payback in 1 to 5 years)

* Insulate the ceiling if not done

* Block draughty air gaps around pipes and cables, windows and doors, with caulking and weather strips

* Insulate remaining hot water pipes

* Insulate under timber floors with underfloor foil

* If your hot water cylinder is not an A-Grade, install a cylinder wrap

Larger investments:

(payback in 10 to 15 years)

* Insulate walls when renovating

* Increase ceiling insulation

* Convert to solar hot water heating

* Double-glaze windows

* Install awnings or shades over windows which overheat your home in summer

Source: Energy Efficiency and Conservation Authority