A new report from EECA (Energy Efficiency and Conservation Authority) reveals that switching to biofuel and electricity could be more affordable for many Waikato businesses than sticking with fossil fuels, making the transition to renewable energy not just environmentally, but economically, desirable.
The Waikato Regional Energy Transition Accelerator (RETA) report outlines up to 92% of the region’s industrial heat needs – from dairy to meat, and commercial sectors – could be powered by local biomass. The dairy sector alone accounts for the majority of the region’s fossil fuel use, offering an urgent opportunity for change.
Investing in energy efficiency and demand-reduction technologies could meet 15% of today’s energy demands, cutting around $110M in new infrastructure costs for electricity and biomass.
The report shows it is commercially favourable for businesses that switch to renewable energy or invest in demand-reduction technologies within the next five years. EECA Group Manager Richard Briggs highlights that although there’s an initial capital investment, the long-term savings – in addition to increased productivity and streamlined operations – will offset the upfront costs.
“Even without a carbon price, 90 potential projects are economic now, and would reduce total costs for the firms involved over a 20-year period,” says Briggs.
“There’s a misconception that transitioning to clean tech is costly, but the reality is, these investments can pay off over time,” said Briggs. “We need businesses to commit now to unlock supply chain efficiencies, strengthen regional infrastructure, and ultimately, help Waikato become a model of, renewable energy adoption.”
Forestry owners in Waikato can also expect significant demand for wood residue as the region moves toward renewable energy solutions. With unutilised wood residue, local biomass will not only fuel industry but will also boost regional energy security, reduce waste, and create economic opportunities.
“Waikato’s forestry sector is a key player in this transition,” said Briggs. “Locally sourced biomass will deliver renewable, lower-cost fuel while supporting a thriving regional economy.”
The RETA report also shows that early adoption of renewable energy solutions will enable businesses to future-proof their operations, especially as gas prices continue to fluctuate. Businesses that act now will be better positioned to weather energy price volatility and reap the rewards of cost-effective, sustainable solutions.
“Renewable energy initiatives aren’t just good for the planet; they’re a job creator for local manufacturing,” said Briggs. “Each renewable energy project is a step toward strengthening Waikato’s economy, providing lasting employment opportunities and protecting export markets focused on their supply chain.”
The report, developed with input from key stakeholders including Transpower, local biomass suppliers, and large energy users, offers a blueprint for the region’s energy transition. It provides businesses with the tools they need to develop and implement their own transition plans, ensuring that Waikato can meet its energy needs sustainably and economically.
“Promising projects are already underway, and the opportunities for Waikato’s future are incredibly exciting,” said Briggs.
Read the full report below.
RETA Waikato - Phase One Report [PDF 16 MB]
Additional information
Process heat is the energy used as heat mainly by the industrial and commercial sectors for industrial processes, manufacturing, and warming spaces. Some process heat emissions can be reduced by redesigning processes, but the remaining heat demand will require switching from fossil fuels to low-emission fuels like wood in boilers or electricity in electric boilers or heat pumps. This shift will help ensure a reliable and affordable electricity supply as demand for clean energy grows.