by Chris Hargreaves | Nov 14, 2023 | Energy, New Zealand Energy Certificates, News, Sustainable Business
Contributed by Paul Coster, Founder of EVA Marketplace
As businesses navigate the need to slash fossil fuel usage, the burning question is: can backing renewables be both a pragmatic commercial decision and contribute to climate action?
Some businesses may be surprised that while Aotearoa’s electricity is ~85% renewable, our energy consumption is only ~30% renewable. This means around 70% of New Zealand’s energy consumption is met by burning gas, oil and coal, mainly for transport, heat and electricity production.
So, how do businesses burn less fossil fuel, and therefore meaningfully contribute to climate action? There are three main options:
-
- Eliminating or reducing fossil fuel use (e.g. reduce air travel, encourage active and public transport)
- Increasing energy efficiency (e.g. improve building insulation)
- Supporting renewable energy
In this article, I’m going to focus on ‘supporting renewable energy’, which is a more nuanced topic than you might think. Currently, there are two climate-friendly options for New Zealand businesses to support renewable energy:
- Demand response: consume more electricity when renewables are plentiful, and less when gas and coal-fired generation is running.
- Additional renewables: procure electricity in a way that helps to add more renewables to the electricity system.
At this juncture, I need to briefly discuss three other commonly discussed renewable energy options:
- Green hydrogen (hydrogen made from renewable electricity)
- Biogas and biomethane
- Woody biomass
Globally, green hydrogen is in its early stages and, in New Zealand, biogas and biomethane are in their infancy. Currently, woody biomass is primarily used in the wood, pulp, and paper sectors, where harvest residuals are readily available (*1).
Experts and scientists are cautious about the scope of these fuels in the clean energy transition due to issues such as: green hydrogen’s inefficiency compared to direct electrification of heat and most land transport (*2), the challenging economics of large-scale biogas/biomethane production in New Zealand (*2), and elevated CO2 emissions over decades created by burning woody biomass produced from whole trees (*3 & *4). In my view, woody biomass production should be limited to harvest residuals, and priority given to its use as energy storage to address electricity shortages.
Ok, returning to demand response and additional renewables:
Demand response
Demand response (also called ‘load shifting’) is the shifting of electricity consumption into periods of time when renewables are plentiful (and out of periods of time when it’s scarce), and was discussed last month by Andy Cooper from The Energy Collective.
Andy explained how businesses can use demand response to save money, reduce scope 2 carbon emissions, and help defer costly investment in the electricity network. He also discussed current limitations of Renewable Energy Certificates (RECs), also called Energy Attribute Certificates (EACs).
Additional renewables
It’s necessary to support additional renewables such as wind and solar, otherwise new electricity demand (e.g. EVs, heat pumps) will need to be met by gas or coal-fired generation.
According to the Climate Change Commission, Aotearoa needs approximately an additional 1,000 GWh of renewable electricity every year between now and 2030 to meet our climate targets. That’s around 2.5% of New Zealand’s annual demand (~40,000 GWh), roughly equivalent to 300 MW of wind or 550 MW of solar, every year.
So, how can businesses help add renewables to New Zealand’s energy system? Impactful and readily available solutions for businesses are:
- On-site renewable generation (e.g. rooftop solar)
- Corporate Power Purchase Agreement (PPA) (*5) with a renewable generation project (i.e. a business buys electricity directly from a generation project)
- Indirect PPA with a renewable generation project (i.e. a PPA entered into by an electricity retailer on behalf of a business)
- Electricity supply agreement (*6) linked to a renewable generation project
Businesses can combine these solutions, such as having on-site generation, a corporate PPA and an electricity supply agreement. Combining a PPA with a supply agreement is called PPA ‘sleeving’. For all solutions, businesses retain a relationship with an electricity retailer.
In Part 2, I’ll look at each solution in detail, discuss their pros and cons, and explain why solutions 1 and 2 tend to be the most impactful. I’ll also discuss the important role played by RECs, or EACs, explaining why these certificates should be used in most cases.
These posts are my current thinking, which I hope opens up more discussion about the impact businesses can have on Aotearoa’s clean energy transition.
—
About Paul Coster
Paul is the Founder of EVA Marketplace, Aotearoa’s marketplace for renewable PPAs. EVA assists businesses by matching them to renewables projects, facilitating PPA negotiations, supporting green products (including RECs/EACs) and enabling corporate PPA sleeving. EVA also publishes a quarterly report on the renewables market.
Total Utilities works with EVA to offer customers the option of a corporate PPA sleeved into their electricity supply agreement, helping to control electricity costs and ethically reduce carbon emissions, while retaining the convenience of an FPVV supply arrangement.
* References
- Biomass energy in New Zealand, EECA
- 2023 Draft advice to inform the strategic direction of the Government’s second emissions reduction plan, Climate Change Commission
- Why burning trees for energy harms the climate, World Resources
- 500+ scientists tell EU to end tree burning for energy, WWF
- PPAs tend to be longer term contracts (5 – 15 years) where a buyer commits to buying electricity from a specific project, such as a solar farm, usually at a fixed price.
- Electricity supply agreements tend to be shorter-term contracts (1-5 years) where buyers purchase electricity from a retailer for their sites or buildings, typically at a fixed price.
by Chris Hargreaves | Oct 9, 2023 | News, Sustainable Business
Total Utilities is proud to announce the successful completion of its fourth year of reporting under the prestigious Toitū net carbonzero programme, achieving an outstanding 75% reduction in emissions since its inaugural year, and a pleasing 56% decrease on 2022.
These results underscore our ongoing commitment to environmental responsibility and our proactive approach to carbon emissions reduction. They reflect our determination to align our actions with our environmental goals, showcasing our dedication to sustainable business practices.
Impressive emission reductions: a stride towards sustainability
Since commencing the Toitū programme in 2019 with baseline emissions of 20.72 tonnes of carbon dioxide equivalent (tC02e), Total Utilities’ most recent audit confirmed a substantial reduction of 5.17 tC02-e last year.
Jonathan Gardiner, Managing Director of Total Utilities, attributes our success to strategic initiatives including a reduction in business travel and careful monitoring of transport fuel consumption for private car use.
“However, we do acknowledge the challenges that lie ahead of us as a business as we look to relocate offices in the upcoming year,” says Jonathan. “This could present new challenges, with the business needing a larger space that will likely require increased energy.”
Total Utilities is eager to mitigate the impact of any changes by actively seeking an office located close to a railway station, which will improve staff commute options and align with the company’s ongoing commitment to reduce its footprint.
“We are proud of the significant strides we’ve made in reducing our carbon emissions so far,” continues Jonathan. “It’s a testament to our team’s dedication and the effectiveness of our sustainability strategies.”
“As we move forward, we are fully committed to environmental responsibility and exploring innovative solutions to further minimise our impact on the environment. We encourage all businesses to get onboard and start on their own decarbonisation journey.”
Partner with us to position your business as a green leader
Managing your carbon footprint comes with numerous benefits including heightened efficiency, reduced costs, and future-proofing your business.
Total Utilities offers a comprehensive suite of services for measuring and reducing your carbon footprint. Our recently launched ‘Carbon Insights’ service enables businesses to supercharge their sustainability goals with advanced AI-powered carbon management, optimising carbon reduction and efficiency.
With carbon measurement and reduction strategies in place, it is then well worth exploring achieving carbon accreditation standards such as those achieved by us with Toitu. Accreditation will help position your business as a green leader and open doors to new opportunities in a sustainability-focused market place.
Join us now in shaping a greener, more sustainable future, and together we can drive real change in the business landscape.
by Chris Hargreaves | Sep 29, 2023 | News, Sustainable Business
[Auckland, New Zealand, 2 October 2023] – Total Utilities, a leading provider of utility management, carbon measurement and reduction services, is thrilled to announce its groundbreaking new Carbon Insights service – designed to help businesses achieve their sustainability goals up to 10 times faster.
Carbon Insights integrates Total Utilities’ carbon expertise with Net0’s advanced Al carbon management platform to deliver a cutting edge, fast-track carbon management solution.
This exclusive collaboration between Total Utilities and Net0 is poised to accelerate and simplify carbon management and reduction for businesses across New Zealand.
A Leap in Carbon Management
Measuring carbon footprints can be a daunting task for businesses with challenges including lack of standardised methodologies, supply chain complexities, data reliability issues, financial constraints, or simply not knowing where to begin.
Total Utilities understands these obstacles and is dedicated to helping businesses overcome them while encouraging wider participation in carbon management programs.
Director of Total Utilities Chris Hargreaves explains, “Carbon Insights enables us to streamline data collection, reporting, target setting, and progress tracking for customers in a cost-effective package. Our goal is to make the journey to net zero faster and more accessible for businesses across New Zealand.”
“While Carbon Insights utilises advanced AI technology, it remains user-friendly and its design allows it to be used in byte-sized, actionable chunks,” highlights Chris. “It is a compelling proposition for customers, empowering them to take control of their carbon emissions.”
Accelerate Sustainability Goals
Carbon Insights offers a complete Carbon Footprinting service, which enables business customers to get a clear view of their current emissions profile in order to guide strategic decisions across the business.
Establishing a business’s carbon footprint can help kickstart enhanced profitability by uncovering hidden inefficiencies and untapped cost-saving opportunities.
Carbon Insights then helps businesses expertly track, reduce and report carbon emissions, in order to accelerate sustainability goals and streamline carbon measurement for enhanced efficiency and profitability.
The service offers businesses a range of features and levels tailored to their needs and budget. It seamlessly integrates with existing accounts and ERP (Enterprise Resource Planning) systems, ensuring a smooth transition.
Showcasing Green Commitment
With research pointing to the fact that the majority of consumers want to support environmentally and socially responsible customers, Carbon Insights by Total Utilities can help position businesses as green leaders by showcasing their commitment to carbon reduction and sustainability.
This exclusive partnership with Net0 underscores Total Utilities commitment to removing barriers to carbon reduction, driving positive change, and creating a cleaner, greener future for New Zealand.
To learn more about Carbon Insights and Total Utilities’ range of carbon reporting tools and services, please visit www.totalutilities.co.nz.
About Total Utilities: Total Utilities is a leading provider of utility management, carbon measurement and reduction services, offering innovative solutions to help businesses optimise their utility usage, reduce their carbon footprint, and achieve sustainability goals. With a customer-centric approach and a comprehensive range of services, Total Utilities empowers clients to navigate the complexities of carbon management and drive positive change.
About Net0: Net0 is an innovative carbon management platform that enables businesses to measure, reduce, and disclose their carbon emissions with ease. With advanced AI technology and a user-friendly interface, Net0 simplifies carbon tracking and reporting, empowering businesses to accelerate their journey towards a net-zero future.
Media Contact:
Jonathan Gardiner,
Managing Director, Total Utilities
E: [email protected]
M: +64 21 265 8379
by Andy Cooper | Sep 19, 2023 | News, Sustainable Business
In a world where businesses are increasingly committed to reducing their carbon footprint and embracing sustainability, the concept of ‘load shifting’ has emerged as a powerful and practical solution.
Load shifting, a strategy that focuses on optimising power consumption during specific times of the day, offers numerous advantages that not only benefit the environment but also boost cost-efficiency.
If you want to have a positive impact on the environment, you should think about changing behaviour. Load shifting can allow you to make a meaningful difference, and it will save you money.
Unlocking savings while helping the environment
Load shifting is essentially the practice of adjusting power consumption to align with periods of lower carbon production. By doing so, businesses reduce their reliance on fossil fuel-based energy generation and minimise the need for costly infrastructure to cope with peak demand.
Peak demand typically occurs in the morning and evening when consumer loads surge, such as when people prepare breakfast and run household appliances. The good news is that power costs less during off-peak hours, offering a significant opportunity for cost savings.
On a larger scale, load shifting can contribute to substantial carbon emissions reduction, impacting both wholesale energy costs and infrastructure investments.
Understanding peak and off peak times
The exact times may differ between plans for small commercial customers, but generally speaking, peak times are Monday to Friday, 7am to 11am and 5pm to 9pm.
How providers choose to offer their off-peak electricity differs. While some opt to provide cheaper rates at any time outside of peak hours, others opt for a day/night plan. On these plans, you only get off-peak electricity rates during the night (11pm to 7am).
Some electricity providers offer three different rates of power, in the form of peak, off-peak and night rates (with nights being the cheapest). Other providers may refer to it as peak, off-peak shoulder, and off-peak. But the principle remains the same: you get cheaper rates during the day and weekends, and the cheapest rates overnight.
Large commercial customers have time of use pricing which has a clear pricing schedule priced in 4 hour blocks during the day. This makes it easier for end users to see when peak periods are.
A Sustainable transition to local renewable energy
As economies transition toward electrification, matching energy demand with clean, locally produced renewable energy becomes paramount. This transition promises to replace offshore, dirty energy sources with more affordable, locally generated renewable power.
Achieving this goal relies on active participation from businesses, innovation within the energy industry (such as automation of electric vehicle charging and battery control), and transparent information sharing with consumers.
A word on certified renewable energy and & offsets
In the quest to reduce carbon emissions, it’s crucial to recognise that purchasing offsets and renewable energy certificates doesn’t cut emissions immediately like load shifting does. Buying offsets merely shifts the carbon burden elsewhere without reducing a company’s actual emissions.
Load shifting offers a real-time solution. By using more power when cleaner sources like hydroelectricity dominate, businesses can lower costs and cut emissions directly. This approach reduces the reliance on fossil fuels, especially during high-demand periods when coal is prevalent, negating the need for costly offsets.
While certificates and offsets have a role, they’re mainly for handling unavoidable emissions. Businesses should prioritise behavioural and efficiency changes to reduce emissions first.
Practical load shifting steps for business
While load shifting is not as simple as purchasing offsets or certified renewable energy, it’s far more attainable than it may initially seem. Businesses can take several practical steps to implement load shifting strategies within their operations.
Simple actions such as adjusting thermostat settings, employing timers for equipment, or optimising refrigeration systems during peak periods can make a significant difference.
Moreover, businesses can explore emerging technologies designed to automate load shifting, making it even more accessible.
By embracing load shifting, businesses can secure substantial cost savings while genuinely benefiting the environment.
Load shifting stands as a powerful strategy for companies committed to making a positive impact on both their bottom line and the planet.
It encourages a shift in behaviour that aligns with the global push towards sustainability, allowing businesses to play a pivotal role in a greener, smarter future.
- Andy Cooper is the Chief Customer Officer from The Energy Collective. Through Total Utilities’ robust collaboration with the Energy Collective and other leading energy retailers, we are empowered to provide our customers with exceptionally competitive pricing.
by Chris Hargreaves | Sep 12, 2023 | News, Sustainable Business
In the words of influential French politician and lawyer, Christine Lagarde, who currently holds the position of President of the European Central Bank, it’s high time for businesses to shift their perspective and view sustainability as an investment not a cost:
“Businesses must see sustainability as an investment, not a cost. By adapting and reducing emissions, they can secure long-term success while safeguarding the planet.”
In this era of environmental consciousness and corporate responsibility, let’s delve into 15 key reasons why addressing your carbon footprint isn’t just a good idea – it’s a strategic move that can yield massive benefits:
- Cost Savings: By implementing carbon reduction measures, you can significantly reduce energy consumption, leading to lower energy bills and operational costs.
- Enhanced Reputation: Demonstrating a steadfast commitment to sustainability and environmental responsibility can elevate your brand’s image, attracting eco-conscious customers.
- Competitive Advantage: Businesses with smaller carbon footprints can effortlessly stand out in the market, resonating with eco-conscious consumers and distinguishing themselves from competitors.
- Regulatory Compliance: Meeting carbon reduction targets ensures compliance with environmental regulations, effectively sidestepping potential fines and legal troubles.
- Risk Mitigation: Reducing reliance on carbon-intensive resources and practices shields your business from the volatility of energy prices and supply chain disruptions.
- Employee Engagement: Engaging in sustainability efforts fosters higher employee morale and satisfaction by aligning with their values and creating a positive workplace culture.
- Innovation and Efficiency: The pursuit of carbon emissions reduction often drives innovation, resulting in streamlined processes and enhanced overall efficiency.
- Resource Optimisation: Carbon reduction initiatives often involve optimising resource use, which can reduce waste, boost operational efficiency, and trim costs.
- Investor Appeal: Investors increasingly favour environmentally responsible companies, making businesses with robust carbon reduction strategies more appealing for investment.
- Long-term Resilience: Proactive measures to combat climate change enhance your business’s long-term resilience, allowing it to adapt to shifting regulatory and market landscapes.
- Supply Chain Benefits: Implementing carbon reduction initiatives within your organisation can inspire suppliers to adopt similar practices, thereby promoting sustainability throughout the supply chain.
- Stakeholder Trust: Transparent efforts to reduce carbon emissions foster trust among stakeholders, including customers, employees, investors, and local communities.
- Customer Loyalty: Customers are more inclined to support businesses that demonstrate a commitment to reducing their carbon footprint, leading to increased customer loyalty.
- Economic Growth: Investing in clean energy and sustainable practices can contribute to the growth of renewable energy industries, creating job opportunities and economic growth.
- Future Proofing: Taking proactive steps to reduce carbon emissions helps businesses safeguard against evolving regulations and changing customer preferences.
Tailored sustainability solutions for your business
By recognising sustainability as an investment, you not only contribute to a greener planet, but also unlock substantial financial, strategic, and reputational rewards.
At Total Utilities, we’re committed to helping you optimise your business and achieve your sustainability goals. Our sustainable energy services are tailored to your unique needs and grounded in a deep understanding of your business’s nuances.
Our mission is to provide practical sustainability planning that not only makes environmental sense, but also solid financial sense, ensuring your business remains resilient and successful in the future.
Groundbreaking carbon management service coming soon!
And in just a matter of weeks, we’re excited to unveil a groundbreaking carbon management service that has the potential to supercharge your carbon reduction efforts tenfold. Stay tuned for updates or reach out to us for more information.
by Chris Hargreaves | Aug 16, 2023 | News
Enter carbon dioxide, commonly known as CO2: our arch-nemesis in the battle against global warming. To tackle this challenge head-on, we must not only grasp its implications but also fathom the sheer scale of the problem.
Unless you’ve been hiding beneath a colossal coal chunk(!) you’ll undoubtedly be aware that CO2 is the driving force behind atmospheric heat retention and the resultant climate shifts.
In less than two centuries, human activities have amplified the Earth’s CO2 levels by a staggering 50%, a stark reminder of our profound impact on the environment.
Picture this
Just 1 tonne of CO2 looks like…
1 tonne of CO2 is equivalent to:
– The average emissions of one passenger on a return flight from Paris to New York
– Driving 6000 km in a diesel car
– 121,643 smartphones charged
Source: Ministry for the Environment – Time series emissions data 1990-2020 from New Zealand’s Greenhouse Gas Inventory published in 2022.
What are New Zealand’s carbon reduction targets?
To give you an idea of the scale of the challenge ahead, New Zealand’s gross greenhouse gas emissions in 2021 were 76.8 million tonnes of carbon dioxide equivalent.
The New Zealand Government has committed to reaching net zero carbon emissions by 2050 and to reducing emissions to 50% below 2005 levels by 2030.
While it’s true carbon emissions are projected to decrease between now and 2050, we will need to redouble our efforts to meet the 2050 target.
There’s no time to lose…
As the race to achieve net zero gains momentum, navigating the complexities of measuring your business’ carbon footprint can be overwhelming.
If your company is bogged down by sprawling spreadsheets and perplexing carbon calculations, why not reach out to Total Utilities?
Our expert team can assist with a comprehensive range of energy insight services. We can help you measure and reduce your carbon footprint, optimise your business, and achieve your sustainability goals.
Also, watch this space, as we’re gearing up to introduce a groundbreaking new carbon management service that will help revolutionise New Zealand businesses’ approach to carbon management and reduction.
Stay tuned for more details on this service, designed to propel New Zealand businesses towards a greener future.
– Contact us today to talk about measuring and reducing your business carbon footprint.
– Sign up to Total Utilities Market Commentary for all the latest energy market news and insights, as well as keeping you up to date on carbon reduction and sustainability best practice. (Include link to Market Commentary)
