Energy savings of $900m a year urged

By RICHARD BRADDELL

Energy Minister Pete Hodgson has ruled out tax breaks to encourage businesses to save energy.

Instead he is urging companies to adopt cost-saving measures which he predicts could save $900 million a year in energy costs by 2012.

On present projections, New Zealand is expected to use 13 per cent more energy by 2013.

But Mr Hodgson told the launch of the Government's energy efficiency and conservation strategy discussion document in Wellington that most businesses could cut their energy consumption 20 to 30 per cent through cost-effective efficiency measures.

More efficient driving behaviour could save $300 a year on the average petrol bill, and savings might be expected by reducing some of the 40 per cent of energy wasted in water heating, which in turn accounted for half of all household energy use.

Mr Hodgson said a 20 per cent gain in energy efficiency by 2012 was a realistic target, even though it required a doubling of the current rate of improvement.

The draft strategy, which was prepared by the Energy Efficiency and Conservation Authority, proposes programmes for central and local government, the building industry, industry and agriculture, transport and the energy supply sector.

The Government is seeking responses to the discussion document by June 1 and hopes to publish its final strategy by October 1.

Mr Hodgson said that one of the harder sectors, transport, accounted for 40 per cent of consumer energy use, given New Zealanders' love of air travel and a rate of car ownership that was the third highest in the world.

"There is only one person in the vehicle for many car trips in New Zealand. One-third of all car trips are for less than 2km," he said, noting that teleworking, ride-sharing and more energy-efficient urban design would help.

Aside from cost savings, one of the more important benefits of the 20 per cent efficiency improvement target would be that New Zealand would be halfway to fulfilling the requirements of the Kyoto Protocol on greenhouse gas emissions.

"There is even the prospect, if we are smart, of meeting our climate change obligations with overall benefits, not costs."