Annual Report 2015/2016

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Annual Report 2015/2016 D.1.AR(16) Annual Report 2015/2016 We are working to make New Zealand a better place to live – economically, environmentally and socially – through the better use of energy. Highlights 2015/16 294,600 0.6 PJ 13,100 homes insulated under of energy homes insulated under Warm Up New Zealand saved from EECA Warm Up New Zealand: programmes since 2009. Business programmes. Healthy Homes in 2015/16. $ 50 37,000 million 1,512 tonnes of additional in savings to New Zealand electric vehicles registered in carbon saved through through energy efficiency labelling New Zealand by the end of June 2016 EECA Business programmes. and regulation. – twice as many as June 2015. $ EECA ranked third % out of 31 national 6 public sector organisations in million 40 Colmar Brunton’s Public Sector a year for an EECA- We have partnerships with business Reputation Index. administered fund established that represent 40% of the energy use to encourage low emission of all New Zealand businesses. 3 vehicle projects. CONTENTS 1 Contents Part A EECA Chair’s Foreword 4 The Board 5 Chief Executive’s Foreword 6 The Management Team 2015/16 7 EECA’s Role and Governance 8 Our Measures 9 Part B Measuring the Difference EECA Makes Statement of Responsibility 12 Statement of Service Performance 13 Residential 14 Transport 30 Business 42 Our Funding 58 Our Organisation 64 Part C EECA’s Financial Performance Financial Statements 72 Glossary 98 Audit Report 99 © Crown Copyright You are free to copy and distribute this work, as long as you attribute the work to EECA and abide by the other licence terms. To view a copy of this licence, visit http://creativecommons.org/licences/by/3.0/nz/ 2 ENERGY EFFICIENCY AND CONSERVATION AUTHORITY ANNUAL REPORT 2015/2016 PART A EECA 3 Part A EECA ANNUAL REPORT ANNUAL REPORT 2015/2016 4 ENERGY EFFICIENCY AND CONSERVATION AUTHORITY ANNUAL REPORT 2015/2016 Chair’s Foreword This year, we’ve seen EECA is well placed to support New Zealand’s own journey to a low emissions economy, with a track record of delivering programmes that cost-effectively save energy costs growing global awareness and reduce emissions. The organisation has developed extensive expertise in technical and practical areas that is being sought out by the business sector and partner agencies. of the important role New Zealand can be proud that nearly 80% of our electricity is generated from energy efficiency has renewable sources but there are many opportunities for improvement in our in achieving carbon consumption of other forms of energy. In March 2016, the Hon. Simon Bridges, Minister of Energy and Resources, announced mitigation. his intention to refresh the existing New Zealand Energy Efficiency and Conservation Strategy (NZEECS), providing a way to explore these opportunities. The 2015 Paris Climate EECA is pleased to respond to this challenge, and is partnering with other government Conference (COP21) agencies to build a plan for New Zealand’s energy future. There are particular opportunities to improve the way New Zealand uses energy in the industrial heat and saw unprecedented transport sectors, which together account for 80% of New Zealand’s fossil fuel use and buy-in from around the almost a third of our total carbon emissions. Another development in the year was consultation on options to expand the electricity world for commitment efficiency levy, through which EECA receives just under half its operational funding. to take action on climate In 2016, the Ministry of Business, Innovation and Employment (MBIE) led public consultation on whether the purpose of the existing levy should be expanded, as change. As countries this would allow EECA more flexibility to fund a wider range of energy efficiency and renewable energy activities. take steps to address The success of EECA’s Warm Up New Zealand (WUNZ) home insulation programmes their concerns, leaders has been widely recognised for making our housing stock warmer and healthier for people. The Board was delighted by the announcement in this year’s Budget that this are looking to energy programme will continue to offer assistance to low-income families in rental properties efficiency and renewable for a further two years. This will encourage continued home improvements until ceiling and underfloor insulation becomes mandatory in private rental properties under the energy for solutions. Residential Tenancies Act. The Government’s Electric Vehicles programme announced in May builds a platform to significantly accelerate the uptake of electric vehicles in New Zealand. We look forward to EECA playing a key role in supporting this programme by administering a contestable fund and leading an information campaign. During the year, we were pleased to welcome the Hon. Phil Heatley to the Board. We also learnt Mike Underhill would retire from his role as Chief Executive towards the end of 2016. On behalf of the Board I would like to thank Mike for his passionate and positive leadership, under which EECA’s role and impact has grown significantly, and wish him the very best for the future. Tom Campbell, Chair PART A EECA 5 The Board Left to right Tom Campbell Chair Appointed February 2013 Marion Cowden Deputy Chair Appointed December 2010 Janet Carson Appointed August 2011 Left to right David Coull Appointed February 2014 Mervyn English Appointed December 2010 Elena Trout Appointed February 2013 Hon. Phil Heatley Appointed February 2016 6 ENERGY EFFICIENCY AND CONSERVATION AUTHORITY ANNUAL REPORT 2015/2016 Chief Executive’s Foreword Energy efficiency and Our Business programmes continued to focus on New Zealand’s largest energy users with excellent results. We ended the year having delivered 0.6 PJ direct annual energy renewable energy benefit savings resulting in additional annual carbon savings of 37,000 tonnes. Our long-term energy management partnerships will potentially see combined annual energy savings of New Zealand by not only around $36 million and 84,000 tonnes of carbon each year. saving costs, but also by Improving the thermal performance of New Zealand homes has been a focus for EECA over the past seven years, with 294,600 homes insulated directly with the assistance of reducing climate-changing EECA funding during this period. The two-year extension to our Warm Up New Zealand (WUNZ) insulation programme is excellent news for New Zealand. I’d like to acknowledge carbon emissions. the generous contributions from third party funders that have allowed insulation to be offered to vulnerable households at no charge; we look forward to continuing this This has been important work together. demonstrated by several In the transport sector, our Heavy Vehicle Fuel Efficiency programme has been challenged by lower oil prices and an industry stretched for resources. We remain achievements during the confident there are significant opportunities to save fuel and carbon in this sector and will work with heavy transport providers to find the best ways to realise them. course of the year. Part of our role as an authority is to provide advice, opinions and leadership on topical energy issues. Our people have investigated a wide range of areas this year including photovoltaics, LEDs, electric vehicles and process heat. Their data, analysis and insights have supported decision-making by other government agencies and underpin all our communications and advice. The value of energy efficiency is becoming more widely understood, as demonstrated by the EECA Awards 2016. With more than 100 entries of exceptional standard, we clearly have innovative and determined champions for energy efficiency throughout New Zealand. I would like to thank Ian Niven, who retired from his role as General Manager Strategic and Delivery Services this year, for his impressive contribution to EECA. I also will retire towards the end of 2016 after nearly 10 years as Chief Executive. It’s been a privilege to lead EECA’s long-term efforts to establish the importance of energy efficiency and renewable energy to our economy and people’s everyday wellbeing. New Zealand has arrived at an exciting point where the interconnections between energy, climate change and economic growth are understood better than ever before. I would like to wish all EECA staff the very best for this continuing journey, and commend the commitment and dedication they have shown to achieve our goals this year. Mike Underhill Chief Executive PART A EECA 7 The Management Team 2015/16 Left to right Mike Underhill Chief Executive Ian Horne General Manager Corporate Ian Niven General Manager Strategic and Delivery Services (to April 2016) Left to right Robert Linterman General Manager Residential Delivery Greg Visser General Manager Business Elizabeth Yeaman General Manager Transport Jenny Lackey General Manager Strategic and Delivery Services (from June 2016) 8 ENERGY EFFICIENCY AND CONSERVATION AUTHORITY ANNUAL REPORT 2015/2016 EECA’s Role and Governance EECA’s role The Energy Efficiency and Conservation Authority (EECA) EECA works through a combination of direct intervention, is working to make New Zealand a better place to live – such as funding for home insulation, and influence, such economically, environmentally and socially – through the as marketing, behaviour change and expert advice. better use of energy. We work to improve the energy efficiency of New Zealand homes and businesses and encourage the uptake of Governance renewable energy. Our work is also aimed at reducing EECA is a Crown entity, established under the Energy carbon emissions to help New Zealand transition to a Efficiency and Conservation Act 2000 and has low carbon economy. responsibilities under the Crown Entities Act 2004. We influence energy use across the economy by EECA is governed by a Board of up to eight members working towards: with experience in energy, commerce, local government warm, dry and energy efficient homes and the public sector. The Board reports to the Minister of Energy and Resources and its members are appointed by efficient, safe and low carbon transport the Minister.
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