EECA CE Dr. Marcos Pelenur reflects on the importance of energy efficiency, and EECA’s role in helping households, businesses and New Zealand's system respond to changing energy needs. Read about how we are reshaping and introducing new initiatives for impact over the next financial year.
Global electricity demand is rising rapidly — driven by industrial growth, electric transport, new heating technologies, and the surge in AI and data centers. This acceleration presents clear challenges, but it also brings the importance of energy efficiency into sharp relief.
New Zealand too faces the challenge of meeting growing demand while keeping energy affordable and making sure the network runs smoothly for everyone.
My recent international engagement reflects that energy efficiency is a key ingredient in this ‘energy trilemma’ — balancing cost, environmental impact, and supply security. Beyond cutting carbon emissions, it lowers household bills, boosts industrial competitiveness, and strengthens system resilience. The recent launch of the UAE’s Global Energy Efficiency Alliance highlights growing international commitment to coordinated efforts. And New Zealand has joined a global commitment to collectively double energy efficiency improvements by 2030.
New Zealand’s experience shows real barriers to widespread adoption — from homes to heavy industry — that need targeted, proactive solutions. At EECA, we’ve long championed an ‘energy efficiency first’ approach — the cheapest fuel. Programmes like EECA’s Warmer Kiwi Homes, which offers heavily subsidised insulation and energy-efficient heating for lower-income households, prove this, delivering about $4 in benefits for every $1 spent, and offering vastly improved health and wellbeing to hundreds of thousands of New Zealand families.
Other initiatives are bearing fruit too, and using the insights gleaned from our research and delivery programmes to date we are reshaping and introducing new initiatives to unlock the gold for the context we are in. For example, EECA’s Regional Energy Transition Accelerator found that optimising South Island process heat plants with efficient heat pumps and switching to biomass or electrode boilers could save more than 7 petajoules of energy. It also evidenced a significant opportunity in renewable energy adoption for those businesses that need it and as a result we’re now looking at our role here over the next financial year.
Zooming back out — EECA is helping New Zealand respond to our changing energy picture using three different levers:
- On the business and partnerships front, we’re launching a new Fuel and Tech Enabler programme — initially focused on the opportunity in solar, biomass and high temperature heat pumps. This regionally-focused programme is using coordination and targeted financial tools to overcome investment barriers to efficient and renewable technologies — especially in emerging markets. Our recently launched Solar on Farms initiative offers wrap around, practical and targeted expertise and support to farmers to help them assess if solar and battery systems are right for their farm. The first cab off the rank when it comes to this new approach. Our financial mechanisms are changing too — we expect concessionary loans will play a key role, alongside other models.
- Empowering New Zealanders through information and insights is a core tenet of our work. Our high-quality research and data helps New Zealand’s public and private sectors invest wisely. Our newly launched home energy savings calculator(external link) is one to check out if you haven’t already.
- Our standards and regulation work is getting ready to scale up to support new fuels and technologies, with a particular focus on helping businesses and households get the most out of them. Our work in facilitating the adoption of smart devices with open communications protocol is a great example of this. We are also continuing to stay closely connected with international best practice to avoid unnecessary burden and trade barriers.
As New Zealand’s energy needs evolve and to get the most value for New Zealanders, our electricity system needs to become smarter and more flexible — and this will have energy efficiency benefits too! But that’s a story for another day.
For now, focusing on energy efficiency offers a clear, impactful way to lower costs and build a system that works for businesses, households, and communities alike.
We’re excited by the progress so far and opportunities ahead to support New Zealanders with the tools to lead the world in smarter, cleaner energy use. Stay tuned for more.