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New Zealand's energy crisis

Balancing security, equity, and sustainability in 2024

The 2024 Energy Trilemma Report is out. It addresses three key dimensions of global energy management:


  • Energy security – ensuring a reliable supply and protecting against disruptions.


  • Energy equity – ensuring access to energy at an affordable price for all.



  • Environmental sustainability – reducing carbon emissions and preserving the environment for future generations.


While New Zealand’s energy system is still considered exemplary in many respects, our security score was significantly downgraded, underscoring some pressing challenges. The fact is New Zealand's energy production is facing significant challenges. Our gas sector is on the brink of a potential shortfall, and the electricity sector is struggling with rising peak demand and forecasting. The rise in energy prices is putting additional strain on businesses transitioning to electrified processes and consumers facing higher costs.


Let's take a closer look at what shape the sector is in.


A man in a yellow vest is standing on top of a roof with solar panels.

The 2024 Energy Trilemma Report is out. It addresses three key dimensions of global energy management:


  1. Energy security – ensuring a reliable supply and protecting against disruptions.
  2. Energy equity – ensuring access to energy at an affordable price for all.
  3. Environmental sustainability – reducing carbon emissions and preserving the environment for future generations.


While New Zealand’s energy system is still considered exemplary in many respects, our security score was significantly downgraded, underscoring some pressing challenges. The fact is New Zealand's energy production is facing significant challenges. Our gas sector is on the brink of a potential shortfall, and the electricity sector is struggling with rising peak demand and forecasting. The rise in energy prices is putting additional strain on businesses transitioning to electrified processes and consumers facing higher costs.


Let's take a closer look at what shape the sector is in.


The 2024 Energy Trilemma Report - NZ’s energy woes

The report offers some sobering insights into our energy landscape. While we've consistently ranked among the top ten globally for balancing energy equity, security, and sustainability, the latest findings reveal some cracks in the armour. Some of the key findings include:


  • Downgraded energy security score - it's taken a hit, because of issues in the gas and electricity sectors. It seems our energy resilience isn’t currently quite as robust as we might have hoped.


  • Issues in the gas sector - there's no getting around it, this sector is in a bit of a pickle. Recent figures show an unwelcome 12.5% drop in gas production compared to earlier forecasts, with the first quarter of 2024 witnessing nearly a 28% plunge. It’s like our gas reserves decided to take an extended vacation.


  • Rising peak demand and blackout risks - remember May 10? We were asked to voluntarily cut our power usage on the coldest day of the year. Hardly ideal.


  • Strengths and weaknesses - despite these challenges, we are building out renewable capability fast, and we continue to excel in promoting environmental sustainability and energy equity. However, our weaknesses lie in energy security and maintaining a consistent energy supply. We need to address these vulnerabilities to enhance our overall performance in the trilemma.


New Zealand’s path to powering up

In light of the current energy crisis, energy conservation is a crucial strategy for mitigating the impact of our dwindling energy resources. It’s like turning off the lights when you leave a room, but on a much larger scale.


Current efforts and strategies for improving energy efficiency

To tackle these challenges, we're ramping up our efforts to enhance energy efficiency services and deliver sustainable solutions. The government and various organisations are pushing for more sustainable practices, including increased use of renewable energy sources like wind and solar. However, as Transpower’s former CEO Alison Andrews pointed out, the shift to intermittent generation methods requires robust support systems. This means investing in technologies like batteries and quick-start gas plants to meet peak demands.


In addition to these technical solutions, there’s a growing emphasis on smart grid technologies and demand response strategies to better manage energy loads and reduce strain on the system. There is significant value in finding innovative ways for energy users to have control over their usage and adopt flex strategies. Think of it as giving our energy grid a much-needed workout routine to stay in shape.


Role of businesses and consumers in energy management

Both businesses and residential consumers play an important role in this energy transition. For businesses, adopting energy-efficient technologies and practices can significantly reduce operational costs and contribute to overall energy conservation. It’s not just about upgrading to the latest green gadgets; it’s about making smarter energy choices every day.


You and I, on the other hand, can contribute by being mindful of our energy usage. Simple actions, such as reducing electricity consumption during peak hours and investing in energy-efficient appliances, can make quite a difference. Every small effort counts towards alleviating the strain on our energy systems and moving us closer to a more sustainable future.


What we need is a collective effort in energy conservation and efficiency. And who knows? We might even find ourselves with a bit of extra power to spare.



A large power plant is sitting next to a body of water.

What does the future hold for NZ?

It looks like a mix of cautious optimism and urgent reform. According to John Harbord, Chair of the Major Electricity Users Group, the energy landscape is evolving, but not without its challenges. The move towards 100% renewable electricity is a commendable goal, but it comes with its own set of hurdles, such as the intermittent nature of geothermal, wind and solar power. Harbord suggests that while we may rely on a diminishing amount of gas-fired electricity for the next decade or two, the key to a successful transition lies in bolstering our energy infrastructure and investment.


To enhance energy security and sustainability, several recommendations are on the table:

  • Reforming regulations - Harbord points out the need for significant reforms to the Resource Management Act (RMA) to facilitate the construction of new-generation projects. Streamlining these processes will help boost investor confidence and accelerate the development of new energy sources.
  • Investing in fast-peaker stations - Transpower advocates these, which are crucial for meeting sudden spikes in demand. These stations, often gas-fired, can start producing power within minutes. However, the challenge lies in the high costs and diminishing gas supplies.
  • Expanding renewable energy - we need the geothermal, wind and solar farms. To address the intermittency issues, it's important to complement these with large-scale batteries and flexible loads to store renewable energy and release it during peak demand periods.


How DETA Can Help

We have proven expertise in helping organisations control their energy use, which is vital during this energy transition. We can help businesses develop tailored strategies to enhance their energy conservation efforts.


Our services include:


  • Energy efficiency assessments - identifying opportunities for reducing energy consumption and costs.


  • Green energy initiatives - assisting in the integration of renewable energy sources into your operations.



  • Regulatory guidance - helping untangle the complexities of new regulations and compliance requirements.


By partnering with DETA, you can be sure that your energy strategies are not only aligned with current best practices but also future-proofed against evolving challenges.


So, while our commitment to sustainability and equitable energy access remains strong, our energy security is facing serious challenges. It’s time to roll up our sleeves and tackle these issues head-on. And remember, every great recovery starts with acknowledging the problem — and we’re on the way.


Keen to learn more about how we can help you control energy use, reduce your carbon footprint and deliver energy improvement projects? Let's talk.

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Proactive Solutions for New Zealand’s Gas Challenges

by Anne-Maree Ward • 13 December 2024
Energy Efficiency and Conservation: Navigating New Zealand's Gas Challenges New Zealand’s energy market is undergoing a dramatic transformation. Rising gas prices, a steady decline in local gas production, and the country’s ambitious decarbonisation targets are creating significant pressure for businesses to adapt. The era of cheap, reliable gas is fading, and for industries that rely on it, the time to act is now. Businesses need to move beyond merely coping with the changes and start embracing practical, forward-thinking solutions that drive efficiency, reduce costs, and align with New Zealand’s sustainability objectives. While the pressure to reduce fossil fuel dependency grows, there’s an opportunity for businesses to innovate. By adopting energy-efficient technologies and lower carbon alternatives, companies can gain a competitive edge while managing the immediate impacts of the gas crisis and preparing for a future with more sustainable energy sources. The evolving gas landscape: what’s driving the change? New Zealand’s gas sector is in a state of flux, with local production dwindling and no imported natural gas available. On top of this, the government’s commitment to achieving net-zero emissions by 2050 is placing additional pressure on businesses to reduce their carbon footprint. For many businesses, continuing to rely on gas is no longer a sustainable long-term strategy. Now is the time to take a step back and consider alternative energy solutions that provide greater stability and long-term value. The path forward involves shifting away from traditional fossil fuels, investing in energy-efficient technologies, and exploring lower carbon energy alternatives. Energy efficiency: the key to resilience While facing such uncertainty in the energy market, energy efficiency is more than just a cost-saving measure—it’s key to building resilience. By reducing energy consumption, businesses can mitigate the financial impact of rising gas prices, all while contributing to New Zealand’s decarbonisation goals. Achieving energy efficiency means not only cutting down on costs but it also positions businesses as leaders in sustainability, supports the uptake of a continuous improvement mindset across the business, and reduces environmental impact. But considering energy efficiency alone isn’t enough. The real challenge lies in the broader energy supply-demand balance across New Zealand. As businesses look to transition away from gas, the energy must still come from somewhere and the market has to react. This is a massive challenge for NZ Inc but many businesses are looking at ways to be innovative and creative with their energy usage and procurement utilising tools like storage, flexible operation and long term contracts to not only create maximise value for their organisations but also to support New Zealand's energy transition.

Measuring up: the importance of energy audits in business

12 December 2024
Historically, auditing has been seen as an undesirable expense with little perceived value for businesses. With organisations failing to see the benefit of examining the finer details of their operations, and with staff assigned to prepare for the audit feeling like they've drawn the short straw, audits have never been fun. Until now. This is when energy audits enter the room to great fanfare. The shift towards sustainability , driven by environmental, social, and governance (ESG) factors, is reshaping how businesses approach energy consumption, waste management, and carbon footprint, and crucially, their relationship with audits. Energy audits are the one type of audit that delivers positivity; they are one of the most effective tools to help businesses reduce their environmental impact while boosting their bottom line through optimised processes and reducing costs. For organisations across Aotearoa New Zealand, Australia, and the Pacific , understanding the significance of energy audits and how they lead to long-term cost savings, improved efficiency, and enhanced sustainability is fundamental to business success. Unpacking energy audits: the key to unlocking sustainability An energy audit is a comprehensive evaluation of a business's energy use and efficiency. Its primary goal is to uncover areas where energy is being wasted and identify opportunities for energy savings. This process is essential for any business aiming to improve its sustainability, reduce operating costs, and meet carbon reduction targets. Whether you are operating a small enterprise or managing a large industrial site, an energy audit provides actionable insights to reduce the environmental impact of the business and improve energy management. There are different types of energy audits, from Lite Audits offering a quick, low-risk assessment, to Detailed Energy Audits, which provide a more thorough and long-term analysis of energy use across the facilities. Both types of audits help you understand current energy consumption patterns and reveal the potential areas for energy efficiency improvements. From insight to action: why energy audits are a business game-changer Energy audits are not just about identifying problems; they are about identifying opportunities for improvement. By performing regular energy audits, businesses can benefit in the following ways: Cost savings One of the most immediate, attractive and tangible benefits of an energy audit is the potential for significant cost savings through the identification of inefficiencies that are costing the business or organisation money. For example, a company may be using outdated lighting or HVAC systems that consume excessive energy. Through equipment upgrades and optimisations , these inefficiencies can be corrected, leading to significant savings on utility bills. Energy audits are also adept at identifying unexpected bottlenecks in industrial processes and are often the first to highlight the potential for process optimisation, improving a business’s overall efficiency and profitability. 
Two construction workers are looking at a blueprint on a construction site.

From concept to completion: achieving industrial projects with sustainable agendas

12 December 2024
In today’s world, the intersection of industrial progress and sustainability has become a critical focus. As businesses and industries expand their reach, the importance of embedding sustainable practices into project management is no longer optional - it’s essential. By integrating sustainability principles from the early stages of a project through to completion, organisations can achieve not only economic gains but also valuable long-term environmental and societal benefits. The role of sustainability in industrial project management Sustainability in project management involves adopting practices that address environmental, social, and governance (ESG) considerations throughout the project lifecycle. This shift reflects a growing recognition that industrial success isn’t just about profitability; it’s about creating enduring value for communities and the ecosystems on which we rely. Industries across New Zealand and Australia are increasingly collaborating with sustainability consultants and ESG consultants to align their projects with global sustainability standards. These professionals guide organisations in setting and achieving ambitious goals, whether it’s reducing carbon footprints, improving resource efficiency, or enhancing social responsibility. For instance, energy consultants in NZ play a pivotal role in industrial projects by conducting energy audits and offering insights into energy-efficient designs, ultimately lowering operational costs and environmental impact. Key strategies for embedding sustainability in industrial projects Implementing sustainability isn’t just about compliance - it’s about innovation. Here’s how industrial project teams incorporate sustainability into their processes: 1. Defining clear sustainability goals Every successful project begins with a clear roadmap. Sustainability goals should align with both organisational values and broader environmental targets, such as the UN’s Sustainable Development Goals (SDGs). Collaborating with energy efficiency consultants and process engineering consultants helps businesses define measurable objectives, such as achieving specific reductions in energy consumption or waste. For example, organisations in the manufacturing sector can work with energy management services in NZ or Australia to develop energy audit services to pinpoint inefficiencies and identify greener alternatives. 
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