SURVEY REPORT 2017 FULL-YEAR SURVEY RESULTS 2018 ENERGY NEWS www.energynews.co.nz Introduction Energy News and ABB are delighted to announce the full- A breakdown of respondents by organisation type is available on year results of the New Zealand Electricity Survey 2018. This page 27. This year respondents included consultants, distributors and document contains results from three of our quarterly surveys gentailers. The survey questions and range of responses were guided that have already been released, and results from the fourth and by an advisory panel chaired by John Hancock. The panel members final instalment – focusing on technology and data. are listed on page 3 and we would like to thank them for their input. The survey, now in its seventh year, had a face-lift in 2018. We moved Please email any feedback to [email protected]. We from an annual instalment to four shorter quarterly surveys. welcome any and all suggestions for questions, themes and responses for 2019. This allowed us to ask the electricity sector thought-provoking questions and gauge its response throughout the year as different Kate Barker – Research Analyst announcements were made and new policy signalled. Freeman (publisher of Energy News) Thank you to everyone who took the time to complete the surveys About ABB each quarter – we received almost 1,000 responses in total. ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in During the year we polled the sector on everything from generation electrification products, robotics and motion, industrial automation plant to electric vehicles, new Government policy directions to the and power grids, serving customers in utilities, industry and transport importance of cyber security. & infrastructure globally. Continuing a history of innovation spanning We brought back a feature for the third year running where we asked more than 130 years, ABB today is writing the future of industrial the industry when they expected to see different milestones achieved. digitalisation with two clear value propositions: bringing electricity Notable changes from last year’s answers include: from any power plant to any plug and automating industries from natural resources to finished products. As title partner of Formula E, • The sector doesn’t expect to see a single solar asset larger than 5 the fully electric international FIA motorsport class, ABB is pushing MW until 2024, three years later than responses showed last year the boundaries of e-mobility to contribute to a sustainable future. ABB • Respondents also pushed out the next network amalgamation to operates in more than 100 countries with about 135,000 employees. 2022, after thinking it was just around the corner in 2017 www.abb.com • Everyone underestimated the rapid growth in electric vehicle About Energy News ownership. Most respondents thought we wouldn’t see 10,000 Energy News is New Zealand’s online news and information service for EVs in this country until 2020, but that milestone was reached in the energy sector. The website (www.energynews.co.nz) was launched September in 2008 and now boasts more than 5,000 readers every month from Responses to other questions throughout the year ranged from equal 300 subscribing organisations. Its readership consists of New Zealand views on all options to heavily supporting a particular direction. energy sector organisations and service companies spanning the A majority of the respondents – 62% - felt that after a year of being electricity, oil and gas, petroleum and alternative energy value chain. in power, the Labour Government was generally heading in the right The subscription-based site provides daily news, executive interviews, direction when it came to energy policy. opinion and commentary. It also hosts a suite of information resources However, when asked specifically about the offshore oil and gas ban including two large databases of sector participants and energy announced in April, 40% thought it was a lose-lose situation, while resources. Other information tools include 30-minute electricity prices, 48% supported it. supply and demand monitoring, petroleum permit deadline summaries and an oil price monitor. There were split views over which type of 50MW-plus generation asset should be prioritised to meet the changing needs of this country’s About Gentrack electricity demand, although geothermal squeezed ahead of the other Pairing deep market knowledge with essential software for essential options for the second year running. services, Gentrack currently enables over 90 of the world’s most progressive utilities to lower service costs, foster innovation and Results from our latest survey show most respondents think that off- confidently navigate market reform. grid or grid-edge distributed generation has already reached cost parity for network companies in some situations. They also picked Gentrack Velocity is a leading billing and customer engagement data management and analytics as the highest technology-related solution for utilities, providing a full range of proven capabilities along priority for the sector in 2019. You can see the full report from our with hosted and managed services options for energy networks, new fourth quarter survey on page 4. entrant energy retailers, and larger utilities in competitive markets, where flexibility, uniqueness and compliance are essential. www.gentrack.com ENERGY NEWS 2 www.energynews.co.nz Advisory panel John Hancock (Chair) Andrew Renton - Transpower John Hancock is an independent consultant to utility Andrew presently works in Transpower’s Grid companies and their suppliers. He is the independ- Development Division. Andrew’s role involves ent chair of the Electricity Authority’s Wholesale investigating and providing holistic, pragmatic and Advisory Group, secretariat to the NZ Smart Grid strategic advice, on suitable and cost effective Forum and has chaired the advisory panel for this transmission solutions as well as new developments survey since its inception in 2012. and technologies. Jenny Cameron (formerly) ERANZ Greg Skelton – Wellington Electricity Jenny Cameron joined ERANZ as its inaugural Chief Greg has been the Chief Executive of Wellington Executive in February 2016. Electricity since April 2009. Prior to his appointment Ms Cameron joined ERANZ from the Brewers’ As- as Chief Executive, Greg was the Chief Executive of sociation of Australia and New Zealand where she Alpine Energy Limited and has held various senior held the role of Director of External Relations. Prior management roles in the electricity industry. to this, Ms Cameron served as a diplomat with the NZ Ministry of Foreign Affairs and Trade including a posting in Tokyo, and an assignment in Manila. Craig Evans – Electricity Authority Charles Teichert – Nova Energy Craig is Manager Retail and Network Markets at the Mr Teichert has been with Nova Energy since Electricity Authority of New Zealand. He leads the 2000 and is currently responsible for strategy team developing electricity market arrangements development, key commercial arrangements, that deliver long-term benefits to consumers from commodity risk management and regulatory affairs. the greater choice and control over their electricity Mr Teichert began his career in the energy sector supply that technology is now making possible. joining the ECNZ wholesale electricity trading team in 1996 followed by short stints at Genesis Energy and Contact Energy. Louise Griffin – Contact Energy Neil Wembridge – Freeman Louise joined Contact in 2008 and has held roles in Neil Wembridge is the General Manager at communications, regulatory affairs and as an advi- Freeman, which sees him take responsibility for the sor to the CEO. These roles, coupled with her time commercial side of the energy sector products of working on the Kupe Gas Project have provided her Freeman, including all events, surveys, stakeholder with an in depth understanding of New Zealand’s management and business development. gas and electricity sectors. Tony McGlennon – Gentrack Angus Watson – Meridian Energy Tony is Gentrack’s New Zealand Country Manager Angus is the Energy Modelling Analyst within and has been working across the energy sector for Meridian’s Strategy and Performance Team. This 10+ years, delivering essential software solutions team is responsible for monitoring and advising the for retailers and networks. He is actively engaged executive team on opportunities across the electricity with energy utilities, spearheading all aspects of sector, in addition to exploring different time horizons Gentrack’s service delivery business in NZ and the from both an operational and strategic focus. Pacific. Ewan Morris – ABB Ewan Morris is the Managing Director of ABB New Zealand, a role he has held since March 2014. He has been with ABB since 1988, and has enjoyed a long and extensive career in the company across five countries including New Zealand, Australia, Sweden, Malaysia and Switzerland. ENERGY NEWS 3 www.energynews.co.nz QTR 3 - 2018 4th quarter – Technology and Data – all change please! In response to our 4th quarter survey, the sector thought: Cost-parity We want is here access Off-grid and grid-edge A centralised distributed generation has repository that reached cost-parity as a accredited third parties solution for some network can access is the best applications way to open access for consumption data Are we secure? Data is king Cyber security Data management breaches are and analytics will be the happening within the highest priority for