A new report, published today by EECA (Energy Efficiency Conservation Authority), outlines recommendations to help Taranaki industry use less energy and move off fossil fuels – future proofing the region and setting it up for a low-carbon economy.
The Taranaki Regional Energy Transition Accelerator (RETA) report highlights the benefits of better industry coordination and shared insights to inform the market that will help streamline technology and infrastructure investments for local businesses and energy suppliers.
“In order to make good decisions, businesses need access to the information that impacts them, especially about the combined impact of decisions made individually across the region,” says EECA Group Manager Delivery and Partnerships Richard Briggs.
The Taranaki RETA report outlines how fuel switching decisions collectively impact investment needed in Taranaki’s resource and infrastructure systems, and the downstream effects of energy supply and generation. This complements the feasible renewable energy source options of electrification and biomass within the region.
Energy efficiency and demand-management projects are the main opportunities for Taranaki to reduce its reliance on fossil fuels in the dairy, meat, industrial and commercial sectors.
The RETA programme brings together gentailers, distribution line companies, business, and other important industry players in each region (across the demand and the supply side of the energy ecosystem) to support the uptake of renewable energy among local process heat users.
“Energy efficiency, demand management and fuel flexibility are key parts of the process for the region. This can lead to significant costs and energy savings and can help the region achieve a lower carbon footprint more economically – the cheapest fuel is the fuel you don’t use,” says Briggs. The Taranaki RETA report provides insights into the opportunities, challenges, and the steps the region needs to take in the switch to renewable energy.
“Taranaki is the country’s only gas producing region and plays an important role in the supply of New Zealand’s energy balance. At the moment most of the process heat requirements in the region are met by gas.
“Uniquely there are two sites in the region that also use gas as a raw material for industrial processes. While this report looks at energy use for process heat, we know that decision-making is more complicated for those organisations that also rely on natural gas in production,” says Briggs.
The report’s insights center on how the region can work collectively – across both the demand side and the supply side of the energy ecosystem, to de-risk investment in greener energy choices, like electricity and biomass.
“Increasingly we’re seeing that businesses who move away from fossil fuels are able to open new supply chains and infrastructure investment opportunities, reduce long term energy costs and create a safer, more efficient working environment for their staff.
“These clean energy projects often also support the New Zealand manufacturing sector and create local jobs. So, it is fantastic to see businesses in Taranaki who still rely on fossil fuels considering how they can bring forward their move to renewable forms of energy.”
The report also shows how decisions may change under various different pricing scenarios. A Taranaki-specific view enables a comprehensive evaluation of these factors, allowing businesses and energy suppliers to make more informed decisions.
Briggs said there will be several important co-benefits for the region as well as reducing the impact of industry on the climate.
r“Benefits will be unique to each business. For example, we’re seeing that commitment to emissions reduction can help a lot of businesses meet rapidly shifting customer and supply chain expectations around reducing climate impact,” said Briggs.
“Moving to a low-emissions environment will help future proof the region’s export brands and contribute to a resilient grid – easing demand on new generation.”
Anne Probert, Director of Strategic and Sector Partnerships at Te Puna Umanga Venture Taranaki, the regional development agency, said that the support of EECA and the expertise they have contributed through the RETA process has been invaluable.
“As our key industries look to the future, important decisions need be made concerning energy usage,” said Probert. “These decisions often reflect a major investment on their part, so detailed analysis like this to enhance that decision making process is incredibly meaningful - especially in these times when critical calls are being made on energy security, affordability, and sustainability”.
Alongside Venture Taranaki, the report has had significant input from Powerco, Transpower, local biomass suppliers and forest owners, electricity generators and retailers, and medium to large industrial energy users.
Access the Taranaki RETA report here:
Taranaki Regional Energy Transition Accelerator
Additional information
This RETA report is the distillation of individual workstreams delivered by consultants; Worley – process heat demand-side assessment, Forme – biomass availability analysis, Ergo Consulting Limited – electricity network analysis, Energy Link Limited– electricity price forecast, Sapere Research Group – report collation, publication and modelling assistance.
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 the underlying processes, but decarbonising the remaining heat demand will require switching from fossil fuels to low-emission fuels, such as wood fuels in boilers or electricity in electric boilers or heat pumps.