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The calls for a 100% renewable energy market in NZ are often met with large amounts of criticism, "We are 85% renewable already", "Thermal back up is required for periods of drought and low wind", "Going 100% renewable will only increase prices as more generation will be required" etc etc etc. Quite frankly, this is an outdated way to think of the market based on large scale generation models and long distance transmission. New Zealand in transition Unlike most other countries, NZ is well positioned to further reduce reliance on thermal generation, given our geography, population spread and isolated energy system i.e. we are not importing or exporting electricity to other countries like many do in Europe or North America. A good first step could be to remove thermal baseload generation from the market, in recent time this has been achieved with Otathuhu closing in 2015, much of the "slack" was taken up by new and efficient running of Geothermal stations. But how do we take this further, how do we remove the requirement for Huntly et al while still retaining large users such as NZ Steel and Rio Tinto? Battery Storage and the New Zealand network From my perspective the largest potential lies in battery storage whether it be fixed assets or leveraging the electric transport fleet in years to come. If generators / network companies considered either installing large scale industrial batteries at remotely located or congested sub-stations or operating networks of small scale batteries installed across thousands of residential homes, massive amounts of money would be saved by not having to build new hydro dams or geothermal plants. Ever increasing costs of maintaining such a large transmission and distribution system for such a small population is surely a compelling event for infrastructure owners to invest in new technologies and new business models to sustain revenue into the future. If we apply Moore's law to batteries, they will half in price and double in capacity in the next 18 months which should see them become extremely viable. Considering the above, the case for thermal becomes much less compelling. Examples from abroad In recent times, Germany has made huge steps to curtail the reliance on thermal generation with numerous renewable generation initiatives. The following article was written by Yaniv Vardi, CEO of Panoramic Power and highlights a number of valuable points that New Zealand might take on board. In a world facing pressing challenges from climate change and rising carbon emissions, entire countries are becoming laboratories to test potential solutions. Nowhere is this truer than in Germany, where their aggressive plans to address climate change, encoded in the ambitious Energiewende, call to phase out nuclear and carbon-based energy sources and invest in renewable energy sources – such as solar and wind. The Energiewende plan envisions a non-nuclear Germany that cuts its carbon emissions by 80% by 2050. As lofty a goal as this may be, the plan is on pace to meet and even exceed benchmarks. Even though not everyone is on board, and some claim the Energiewende is overzealous and could strangle business in favor of pushing an unrealistic energy policy, progress well underway. What is the Energiewende, and what has it done so far? The Energiewende is a sweeping plan for "the full-scale transformation of [German] society and the economy" along the lines of renewable energy. Passed in 2010 in its most recent form – but with social and political roots that stretch back 20 years prior – the Energiewende schedules a complete phase-out of nuclear-generated energy by 2022, an 80% cut in carbon emissions by 2050 and supports additional investment in renewable technologies such as wind and solar. The Energiewende has three main components: proliferation of renewable energies, reduction or compete phase out of nuclear- and carbon-based energy sources and increased energy efficiency.  Germany is well on its way to completing these goals successfully and in a timely fashion. Currently, the first two components are well underway, while early progress has been made toward heightened efficiency. By 2014, 27% of German electricity was generated by renewable sources. Since 2011, Germany has halved its consumption of nuclear energy and shut down nine of its 17 nuclear reactors. On its surface, the Energiewende appears to be working. It doesn’t mean, however, that the policy isn’t free of critics. Some have vocalized sharp critique, casting doubt on the viability of the energy plan. But do these arguments hold water?   The continuing energy debate Not everyone is sold on the promises of the Energiewende. Some, like economist Heiner Flassbeck, argue that an energy system primarily supported by wind and solar, without any aid from nuclear sources or fossil fuels, is ultimately not tenable. Flassbeck's critique is related to what critics call "the intermittency problem," that wind and solar don't always generate electricity at reliable levels. If the renewable sources fail to produce enough energy to meet the nation's demand, and Germany successfully phases out all nuclear- and carbon-based energy sources, there would be no fallback to generate the additional energy needed. Critics say removing that backup would be a crucial mistake. However, proponents argue that intermittency can be solved with greater grid connectivity – geographical diversity, they suggest, should often balance out any shortages – and the development of better storage technologies. At present, wind energy must be used as it is generated; if cost-effective storage methods emerge, the intermittency of wind power becomes less of a concern. In addition, alternative sources have proven themselves to be sufficient. Just last year, German solar power providers generated so much electricity that they actually had to pay to offload it. And while naysayers may declare this the product of a ham-fisted public policy that actually dims the long-term viability of commercial energy production, the fact that there’s enough clean energy production to bring this hypothetical conflict to life, is itself encouraging. Energiewende critics also raise concern about inflated electricity costs. In Germany, utilities are required by law to pay energy producers that sell back to the grid. Those payments are set at fixed, above-market prices, which utilities pass on to consumers in the form of a surcharge on their electric bill. As a result, German consumers experience higher than average energy costs. In 2016, the surcharge amounted to 22.1%. In the U.S., consumers pay less per kilowatt hour, a fact favored by critics of Germany’s energy policy. Despite the heightened electricity rates, German consumers are still widely in favor of the Energiewende. More than 80% of respondents of public opinion polls said they were in favor of a low-carbon and nuclear-free economy. Higher energy costs, it seems, do not deter the Germans in their bid for a cleaner energy system. Toward a viable, national energy management model Despite critics' appeals to hold tight – at least for the time being – to the nuclear- and carbon-based status quo, Germany's energy efficiency policy is making a compelling case study for a more sustainable model. The methods may be bold, but they seem to be working. Germany reduced greenhouse gas emissions by 27% and produced 27.4% of its electricity from renewable sources. Renewable energy made up 13.5% of the market as well – all while shuttering nuclear facilities and growing the overall economy by 1.9% (the fastest rate in the G7). While Germany is phasing out non-renewable energy sources like coal at a slower pace than nuclear energy, the Energiewende is setting the stage for a new system founded on renewable energy technologies. As storage methods improve and proliferate, and distribution networks become more connected, the problem of intermittency should become less and less burdensome – in other words, high-producing regions will be able to support low-producing regions. While the Energiewende is aggressive bordering on single-minded, it has already demonstrated its viability as an energy system capable of supporting an advanced, forward-thinking economy. Even as the German policy has implemented drastic changes in a relatively short amount of time, the German economy has continued to grow unabated. If the world is serious about combating climate change and meeting the targets of the Paris climate accord, Germany's Energiewende is a model to emulate, not dismantle. Yaniv Vardi is the CEO of Panoramic Power, a leader in device level energy monitoring and performance optimization

A decade or more ago I used to defeat chess playing computers for a small wager. It was simple stuff really – just find a weakness and ruthlessly exploit it – in my mind computers were basically binary and thus “stupid”. Today chess masters are fair game for computers. My party trick is ancient history and I am frankly a little scared about what happens when computers can outsmart humankind.  Terminator anyone? Some would argue that we have nothing to fear. Others feel exactly the opposite. Stephen Hawking recently wrote “The full development of AI could spell the end for the human race”. Elon Musk – founder of PayPal, Solarcity and Tesla called it “Summoning the demon”. The impact of AI in New Zealand Putting aside visions of Arnie and terminators for the moment we should also look at the impact that AI might have on New Zealand businesses. Most kiwi business owners and leaders are constantly aware of the need to innovate, optimise and seek competitive advantage by being cleverer than the guy overseas. Thus, we find ourselves asking: How do we get the best out of what we have? How do we employ better people and make them more effective? How do we use the limited space we have at our disposal? How do we get the machines that we paid heaps for to be more efficient? The questions are endless but sadly the time and money we have is not. I cannot count the number of times I have spoken to business people who know what needs to be done to make companies better, faster or quicker but simply don’t have the spare time to do it. Here is where Artificial Intelligence comes in. It not only analyses the data to answer the question but it can also act on the insight, often in real time. Don’t believe me? How do you think Amazon remembers your book purchases and even title searches and then suggest others that may be of interest? AI also allows Amazon to identify your location, match it to the right supply chain service to execute the sale and delivery via the cheapest and most direct route. Amazon's arrival in Australia is causing tremors across the whole retail industry there. It’s not just books they sell, you name it, they have it, at a price too cheap to resist. At the heart of this frighteningly effective, multinational monster is Artificial Intelligence We have always had AI – it has just been too expensive to make that much of a difference. Now it’s available as a service from the likes of Google (Google AI) and IBM – (Watson) and numerous clever startups. The availability of world class AI a via Software as a Service model means that we don’t need supercomputers and massive budgets to take advantage of AI in New Zealand. Next month I will describe examples of how AI is being used to optimise business’s use of energy and compute resources to save money and compete.

Intelligence without ambition is a bird without wings. Drawing is the honesty of the art. Salvador Dali Today Total Utilities announces its new branding. Over the last 18 years we have worked hard to assist companies in controlling consumption and cost. It's an exciting day for us and we are proud to share this with you. From today you'll see a change in the way we look, including our new ribbon logo. The spherical shape represents the whole as we take a 360 degree approach to understanding our clients and their utility requirements, whether it be Energy, Waste and ICT or Insights, Strategy and Solutions. What doesn't change is our desire to create a sustainable future for New Zealand businesses and how they manage their utilities by continuing to deliver ongoing value for our clients. We continue to work hard to provide new services to assist our clients such as Energy Monitoring and Targeting through wireless non-intrusive energy senors, Cloud Computing Analytics for consumption of computer services and qualitative and quantitative reporting aligned to overall financial strategy. Total Utiltities About Us Presentation We remain committed to delivering a personalised service and assisting our clients navigate a rapidly evolving commercial market place by underpinning strategic thinking. I would like to thank our existing clients for your continued loyalty and confidence in our company. To prospective clients, I hope that you will partner with us to discover real world solutions for sustainable utility consumption and cost optimisation.