Sustainability Intern at DETA

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.

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.