by chris | Jun 12, 2018 | Energy
It is well known that in New Zealand, energy generation is largely renewable. Around 65% of generation is hydro-based mainly in the South Island and around 15% is geothermal based through the central to the eastern side of the North Island. In the following series of articles, we will look at the pros and cons of commercial solar installations in the New Zealand market.
During the last National-led Government, there was little emphasis placed on increasing the uptake of large-scale Solar (with the current Labour-led Government this may change) as it was seen merely as converting from one form of mostly renewable generation to another with little overall benefit to New Zealand’s energy generation emissions. This is because the vast bulk of our thermal based load is only utilised during times of long-term dry weather (mostly during Winter periods) or intermittently when other generators are out for short-term planned or unplanned maintenance.
While Solar energy generation has been around for well over 30 years, it has only recently that economies of scale in efficiency and cost have meant that generating energy for photovoltaic panels is a realistic option for some businesses to reduce their reliance on the main transmission and local distribution grids.
A recent study published by Statistics NZ and the Ministry for the Environment concluded that sunshine hours are increasing in most areas across the country. However, there are areas throughout the country that have a more natural fit for installing Solar due to a combination of sunshine hours and the costs of energy and transmission and distribution energy pricing.
The recently announced ban on offshore oil drilling and gas exploration will have a major impact on the energy requirements of the country. From the generation perspective, Genesis’ Huntly power station will be most affected. While the original Rankine units are expected to be operated through to around December 2022, the newer 400MW combined cycle generator may have an uncertain future. From an end user perspective, food manufacturing will be most greatly impacted by a lack of gas supply or higher costs due to imports which is most likely lead to manufacturing moving offshore or higher prices for consumers. However, I digress, although the above will most likely have a positive impact on the feasibility of distributed generation.
Regulatory change and reform have always had a large impact on New Zealand’s primary sectors, and since deregulation of the energy system in 1999, successive governments have used the market for political capital by consistently tinkering and influencing the market. With the upcoming wide-ranging government inquiry into power pricing in New Zealand, the newly created Climate Change Commission and the Transmission Pricing Methodology Proposal one thing is for certain is the constant potential for change.
by chris | May 9, 2018 | Energy
Many businesses begin collecting energy data as a means of saving energy – and energy costs. While this remains one of the greatest benefits of energy data analysis, its appeal does not start nor end with direct financial considerations.
In fact, focusing only on energy savings has led to an underestimation of the full value of data-backed energy management in global economies.
Across all sectors – from manufacturing to retail to healthcare – organisations are harnessing the operational efficiency benefits that result from energy data like never before by:
- Assembling and integrating energy data to share across the enterprise
- Combining data and advanced analytics
- Benchmarking against historical data, similar devices, comparable locations, and industry standards
- Acting on alerts and insights to ensure the reliability and performance of critical assets
Using energy data for operations and maintenance results in a wide range of benefits across the enterprise. Organisations are harnessing the operational efficiency benefits that result from energy data like never before.
Transparent collaboration
Businesses, today, generate more data than ever before, yet often, very little is actually used to make real-time decisions. Different departments gather their own data and do not always share it across the organisation.
Collecting data from critical devices formulates a single source of truth that can be easily shared across teams, departments, and entire enterprises. This breaks down information silos and enables managers to set KPIs and predict and avoid waste.
Increased production yields
Both discreet and processed manufacturers rely on the optimal performance of their production machinery energy as a lifeblood. Manufacturers think profit per hour and total profit should be driving factors in making decisions.
By monitoring the energy data of their machinery, manufacturers can now link their operational goals with energy performance. Ensuring equipment optimisation and effectiveness with live equipment status monitoring helps create greater outputs and enables users to calculate the cost of production per equipment/production line.
Improved maintenance schedules and expedited decision making
Initiating a systematic approach to energy data gathering at the device level, manufacturers can be alerted to anomalies in their critical devices. By diagnosing, troubleshooting, and servicing the machinery that is showing irregular consumption patterns, they prevent imminent disruptions or even breakdowns.
From kitchen equipment to HVAC, lighting and industrial machinery – maintenance schedules are improved and become more cost-effective.
When time is money, a quicker decision is a more profitable decision. Enterprise-level decisions that are based on data are reliable and undeniable.
Energy data enables the transformation of facility and maintenance groups from a cost centre to a value centre. No longer do these groups weigh on the company’s bottom line. Instead, they become the suppliers of data that adds value by informing decision-makers of opportunities for savings and optimisations.
Energy forms a sizable share of operating costs
Operational efficiencies from energy data
The starting point for most operational-improvement efforts is incremental change: taking an existing process as a baseline and seeing what improvements are possible from that point.
Saving energy, funnelling the savings to the bottom line, and reducing carbon emissions are all worthy benefits of energy data. Adding the multiple benefits to operations, albeit sometimes difficult to measure or quantify, increases ROI. Operational efficiencies maintain the value of the business while reducing the required resources.
by chris | Dec 12, 2017 | Energy
The following was published in the NZ Herald 25th of November 2017 and includes energy tips from Total Utilities’ own Pushkar Kulkarni who reveals how leaking air wastes money.
Four energy experts offer top tips to save money
Running an air-conditioning unit at full tilt to cool down one part of a building, while a boiler blazes away to heat another part of that same building, sounds like madness – but it’s surprisingly common in New Zealand’s commercial buildings.
It’s just one of the ways businesses are squandering energy, and therefore money, in the course of their day-to-day operations.
The Energy Efficiency and Conservation Authority (EECA) say many businesses could shave up to 20 per cent off energy costs – with the potential energy efficiency savings adding up to $900 million a year across all New Zealand businesses by 2030, if all economic options are adopted.
The good news is many of the fixes are inexpensive, immediately effective and boast short timeframes for return on investment. Some even cost nothing. According to some of the market’s energy efficiency experts, here are some of the most common ways businesses are wasting energy.
Poor energy monitoring
Simon Ross, mechanical engineer, Beca: “People leave their buildings running when there’s no one in them. The warm-up cycles also often start way too early in the mornings – and no one is even aware of it.”
Ross says monitoring energy use identifies where it is being wasted and quickly clarifies a plan of attack. It’s a classic case of not being able to manage what hasn’t been measured.
“Once you’ve measured it, it then makes sense to compare your energy usage to others in your industry – to benchmark it.”
Ross points to Beca’s benchmarking of electricity use of Christchurch schools: “When a school can see where it sits relative to another school then they can see the value in reducing their energy usage. Until you give them data to show where they sit, they’re basically only able to compare with how they’ve performed historically – which might be good, or terrible.”
EECA Business has its Energy Management Journey tool set up for precisely this purpose. It’s a free online tool where users input energy usage data, then find out how they’re doing compared to similar businesses. Find out more at https://www.eecabusiness.govt.nz/tools/energy-management-journey
Leaking Air
Pushkar Kulkarni, business manager sustainability solutions, Total Utilities:
“Many companies invest in a new air compressor but may not make an effort to find the leaks in the system first. If all of those leaks are found and fixed, they may conclude there is no need to invest in a new compressor.”
Kulkarni sees this scenario on a regular basis. He estimates eight out of every 10 systems could be leaking air.
“These systems are very common in New Zealand – particularly in the industries of production, packaging, food processing, waste, yarn and pharmaceutical production. Over time they may deteriorate or be modified and start leaking air. They can be expensive to run, so the savings from identifying and fixing leaks can be considerable. It’s usually a fairly inexpensive fix with a fast return on investment.”
Uninsulated pipes
Glenn Johnston, Smart Power: “If it’s an exposed pipe in a warm boiler room it’s not as bad but, if that pipe runs outside or through the roof space where it’s a lot colder, the heat loss can be substantial.”
Johnston is used to seeing money go down the drain in the form of energy escaping from uninsulated pipes, used for both heating and cooling.
“Industries where it’s important to insulate pipes include the likes of food processors, hospitals, freezing works, packaging plants – anywhere they have refrigeration or hot water needs.”
Often these pipes are easier to get to than in commercial buildings, making repairs easier and cheaper. Johnston cites the example of a plant his company worked on. The company beefed up insulation of steam and hot water equipment. A $20,000 investment turned into an annual saving of some 250,000kWh, or $11,000, giving a payback period of just 1.9 years.
“When you insulate pipes properly you get an immediate impact,” says Johnston.
Heating and cooling systems fighting each other
Alastair Hines, divisional manager, Enercon: “Heating and cooling systems are often working at the same time. Nobody worries about it too much, because it’s the norm.”
Hines points to one business which Enercon found many of the heating, ventilation and air-conditioning (HVAC) and lighting systems were operating 24 hours a day, seven days a week, even when not required. The HVAC systems also did not have an air temperature dead-band to prevent frequent switching from heating to cooling and vice versa.
That resulted in increased demands on the system and adjacent zones simultaneously heating and cooling.
Hines says this happens in many commercial buildings, typically because the building is poorly controlled. He estimates 10-20 per cent of the energy used for heating and cooling in a building is wasted.
“When you consider heating and cooling account for up to 50 per cent of the total cost of running it, that 10-20 per cent can be a big saving. Adding sub-meters, sensors, and re-programming the building management system all make a big difference.”
A treasure trove of information about how businesses can save energy is available on www.eecabusiness.govt.nz, or find an energy management expert in the Programme Partner directory.
by chris | Dec 7, 2017 | Case Studies, Energy, Panoramic Power
Pushkar Kulkarni from Total Utilities completed the site review and NABERSNZ Assessment of Watercare House. Here he provides additional commentary to the original published case study, highlighting the specific benefits of a NABERSNZ tenancy rating.
“A NABERSNZ tenancy rating is an ideal tool for tenants as it shows them how their day to day operations impact their energy performance. It can also determine how well they manage energy and identify the opportunities that may exist to improve energy performance.
In an increasingly competitive market place and businesses look for a point of difference by delivering on their corporate and social responsibility, and think about long term business sustainability, tools like NABERSNZ are a good demonstration of their willingness to “walk the talk”. It reflects where they are now with respect to others and what benefits they can get by improving their NABERSNZ rating. I definitely feel that ratings will become increasingly important in New Zealand.
Equipment directly impacting the tenancy rating of Watercare are: lighting, computers, and client specific plug load etc. They are limited to what they can do with the lighting connections and zoning due to way in which these were originally designed. This has had an impact on the rating. If a NABERSNZ rating was a factor that developers and contractors were informed of during the design/build stage, then there is good chance that the lighting connections and zoning may have been designed differently.
In my opinion the occupancy density, clever use of all areas, and using lighting controls are the main factors that have resulted in a 4-Star NABERSNZ tenancy rating for Watercare. The rating demonstrates it’s a very good start and platform for Watercare to understand where they are at compared to the wider market and examine strategies on how they can improve going forward.”
Scoring a first-rate NABERSNZ 4-star tenancy rating for energy consumption at its office demonstrates an Auckland company’s commitment to the environment.
Auckland water provider Watercare Services Limited is the anchor tenant in an eight-level office block constructed in bustling Newmarket in 2013.
73 Remuera Road is the first Green Star rated commercial property in the district and reflects the growing demand from corporate tenants for green principled, energy smart work spaces.
Watercare occupies three of five office floors in the building.
Key Facts
- 4-star ‘excellent’ NABERSNZ tenancy rating
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Energy use certified as 97.6 kWh/year/m2
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NABERSNZ to be used at other sites
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Further energy upgrades continue
Big Numbers
- 2013 – achieves a 5 Green Star Design rating
- 2015 – achieves a 5 Green Star Built rating
- 2016 – achieves a 4 star NABERSNZ tenancy rating
- Energy use certified as 97.6 kWh/year/m2
- Total energy consumption 738,454 kWh/ year
Building Profile
Location: 73 Remuera Road, Newmarket, Auckland
Owner: Viewmount Orchards Limited
Anchor Tenant: Watercare Services Limited (approximately 300 employees on site on an ordinary day)
Accolades:
- 5 Green Star Design (Achieved 2013)
- 5 Green Star Built (Achieved 2015)
- NZ Property Council Award – Commercial Office Property Best in Category Award 2015
- NZ Property Council Award – Green Building Property Merit Award 2015
The Anchor Tenant
Watercare is an Auckland Council owned organisation (CCO) providing water and wastewater services to Auckland and its environs. It is committed to the sustainable management of natural resources and energy saving operations. The Auckland Council has two additional NABERSNZ rated premises – the Manukau Civic Building (3 star whole building, 2014) and Orewa Service Centre (3.5 star whole building 2016).
watercare.co.nz
The Building/Facilities Manager
FM Concepts Limited is an Auckland-based commercial property management firm which focuses on medium to large high rise buildings and offers a full range of services including onsite operational management, property consultancy, contract management, health and safety systems and cost management. It has a strong interest in the sustainability of the built environment and energy efficiency. Two commercial buildings in its portfolio are currently undergoing NABERSNZ ratings.
fmconcepts.co.nz
Key Sustainable Features
- Located within easy walking distance of train and bus networks – encourages sustainable transport options for occupants
- High-tech building controls and management system with real time monitoring
- Energy efficient heating, ventilation and air conditioning system (HVAC).
- Double glazed façade
- LED lighting
- Well-designed waste collection and recycling area
- End of trip facilities – gym, cycle park and locker facilities
This property is a brownfield redevelopment – its construction has improved an existing dilapidated area and makes a positive contribution to a sustainable Auckland.
Why NABERSNZ?
With water being its core business Watercare has the environment and energy issues at the top of its agenda.
While its head office is housed in Green Star rated Watercare House the company’s sustainability manager Roseline Klein says the company wanted to understand its everyday energy performance across the three floors it occupies in the building.
It was the missing ingredient.
We wanted to know where we were at with our energy performance, how well we were doing and where we could improve. We’d heard about NABERSNZ so we did some research online. It’s a great tool, it provides a benchmark and it drives best practice.”
– Watercare Services Limited Sustainability Manager Roseline Klein
NABERSNZ in Action
Watercare Services Limited sustainability manager Roseline Klein says undertaking a NABERSNZ rating over its 7563 square metres of office space has proved to be “a painless process”.
The meterage required for a rating was already in place – 18 meters had been installed in the building during the construction period to aid fine-tuning of systems and utilities.
The company took advantage of the free NABERSNZ feasibility assessment which determines a building’s readiness to get started with a rating.
“It made a big difference for us and took away the humdrum business of counting 644 computers and documenting the configuration of staff plus it set a timetable, provided a checklist and saved us time,” says Roseline.
NABERSNZ assessor Pushkar Kulkarni from Total Utilities says lighting, computers and occupant specific plug load have the biggest impact on a tenancy rating.
He says clever configuration of work spaces, occupancy density and sensory lighting controls have resulted in Watercare’s superb 4 star result.
The Value of NABERSNZ
Watercare says it wants to model water and energy efficiency and its 4-star NABERSNZ tenancy rating shows its credentials.
Sustainability manager Roseline Klein says the rating has been “a great experience” and has pushed the company to look hard at its resources and ensure they are better used.
“It’s spearheaded change. For example we’re now trying to ensure our procurement process is not always about cost but energy efficiency too. We’ve recently retrofitted our gym with water efficient shower heads which use nine litres per minute compared with 12 – they offer a better shower experience and use less water and energy,” she says.
Roseline believes if a NABERSNZ rating was compulsory it would encourage energy awareness and help tackle climate change.
“For example Aucklanders are the lowest users of water because it is charged volumetrically so whether you are sustainably-minded or not your invoice reminds you not to waste, to think of water efficiency. A mandatory energy performance rating would have the same effect for landlords and tenants.”
In Australia a NABERS rating is compulsory for commercial offices over 1,000 square metres while a range of mandatory energy performance ratings exist in Europe.
NABERSNZ assessor Pushkar Kulkarni says as Kiwi businesses increasingly look to deliver on corporate and social responsibility and think about long-term business sustainability a NABERSNZ rating demonstrates a willingness to ‘walk the talk’.
“The NABERSNZ tool is set to become increasingly important in New Zealand.”
A NABERSNZ rating demonstrates a willingness to ‘walk the talk’
– NABERSNZ Assessor Pushkar Kulkarni
by chris | Dec 5, 2017 | Energy
Cost reduction in the energy market through procurement has been relatively easy in the last few years. Flat national demand, solid hydro storage, increased retailer competition and participation in the ASX market has led to competitive commercial contracts that have allowed many customers to save money without changing what they are doing.
While an immediate impact, it is not sustainable. Fixed price contracts are typically only 2-3 years in length and only relate to +/- 65% of a total bill, changes in transmission and distribution pricing is passed through at cost by the retailers and these costs are non-contestable.
In recent weeks, hydro storage has dropped for the second time this year to low levels which has driven large increases in Spot and ASX future pricing. Spot pricing through June moved well above the long term average, peak daytime periods were regularly priced at between 15-20c/kWh or more. While the South Island hydro storage lakes recovered in August from the dry winter, there has been little rain during spring which has meant that water inflows have been below 70% of average levels. It is not uncommon for Spot to bounce around at this time of year due to scheduled maintenance of thermal generators and other transmission related work, however the lack of South Island rainfall and the longer term NIWA forecasts are concerning. Over the last couple of weeks it has been like déjà vu as Spot pricing escalated to day time peaks of above 20c/kWh. 2017 is shaping up to be one of the more volatile years in recent history. Both ASX futures and Spot prices are lead indicators to over the counter retail pricing, pricing can change quickly and for customers who maybe engage with the market once every 2-3 years as contracts end, if the timing is wrong it can lead to significant price increases.
With New Zealand’s energy market so heavily reliant on environmental factors for supply of fuel, it is not enough to rely solely on pricing being the same or better every time a customer needs to sign a new commercial supply contract. Nationally we have around 6 weeks of hydro storage, tiny in comparison to Iceland who have around 6 months backup. Needless to say, it does not take much for the market here to spike, a period of unseasonably dry weather combined with a cold snap, some thermal generation outages and transmission constraint issues all lead the market in one direction.
Customers are asking us what else can be done to mitigate pricing risk in the future aside from securing competitive energy supply contracts. Utilities are a two way street, a symbiotic relationship between consumption and cost. If we take a strategic view, then time and effort needs to be directed at both sides of the coin.
We recently had a customer say, “It’s great when I can save 1-2 cents per kWh with a new contract, but for every kWh I don’t use, I save 10 cents. That’s where the real gold is hidden.”
Total Utilities has a range of energy management services that can assist customers identify sustainable energy savings. We can guide you through your energy efficiency journey from how and where to get started, device level energy monitoring and targeting to identify energy wastage, energy audits, solar viability analysis and system design, BMS optimisation and NABERNZ ratings though to implementation and post commissioning reviews.
Planning for efficiency now, can reduce cost risks in the future when commercial pricing increases. We’d welcome the opportunity to discuss with you what might be possible to ensure a commercially sustainable future.
