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DID YOU KNOW THAT SMART POWER OFFERS...
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Energy Audits?
Energy audits are our specialty. At Smart Power we can tailor these audits to your needs or run the audit in accordance with industry standards. Our accredited auditors have considerable experience within the commercial, industrial and statutory authority sectors.
The audit reports outline how energy is consumed on a site and identify recommendations for potential savings. The recommendations are presented in terms of cost benefit, implementation and projected annual savings. Generally the recommendations in our audits lead to potential savings of 10%-30%.
We can also arrange and manage the implementation of the audit recommendations.
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EVER WONDERED ABOUT....
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The Smart Meter Debate?
As with many newsworthy and current topics, the concept of smart meters seems to polarise people. While many accept their growing presence, others are resisting them both personally and publicly, while others broadly support the concept but argue over lost opportunities. So what is it all about?
WHAT'S SO 'SMART' ABOUT SMART METERS?
A smart meter is an electronic meter that records consumption of electric energy in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the central system.
HOW DO SMART METERS COMMUNICATE?
Signals from smart meters communicate to the retailers or their service providers. The signals are radio frequencies of various wavelengths. There are two main transmission methods:
* General packet radio service - cellular transmission in the 900MHz or 1800MHz frequency bands - a point-to-point communication from the smart meter to a cell phone tower. As with cell phones, there are 'heartbeat' connection periods. Total transmission time is usually less than one minute a day.
* Radio mesh - radio transmission in the 900MHz frequency band - a point-to-many communication. These systems are relatively low power with a short range of a few kilometres. Information is collected into data concentration points and relayed.
WHAT ARE THE PERCEIVED BENEFITS OF SMART METERS?
* no-one has to come round to read your meter
* more accurate billing with no estimated reads
* changing retailers will be easier
* consumers can access more information about their energy use patterns
WHAT ARE THE PERCEIVED RISKS OF SMART METERS?
* health concerns around radiofrequency radiation
* privacy - who has (or can gain) access to your information
* security - if electricity can be disconnected via a smart meter, is there a risk of someone 'hacking' the network and maliciously disconnecting customers
* freedom of decision: in some states of Australia smart meters have been considered compulsory, which has raised objections. In New Zealand so far, smart meters are optional
WHAT ARE THE PERCEIVED LOST OPPORTUNITIES WITH SMART METERS?
* smart meters may not be 'smart' enough. In New Zealand retailers have been criticised by the Parliamentary Commissioner for the Environment for not including a "home area network" technology which has been required in other countries in which smart meters were mandated. HAN connectivity allows the smart meter to communicate with smart-enabled devices within the home.
* studies indicate that smart meters need to be used in conjuction with in-home or online displays and programmes in order for consumers to realise the feedback-indcued savings
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Greetings!
Welcome to this edition of "Get Smart", Smart Power's regular bulletin. Get Smart provides a round-up of energy news and views from Australia, New Zealand and around the world.
In "The Company Voice" this month, New Zealand-based director Anne Herrington talks about the introduction of New Zealand's version of the NABERS rating system developed in Australia.
As always your feedback is most welcome. |
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AUSTRALIAN ENERGY HEADLINES
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Australian PM changes carbon tax ahead of election
Australia's Prime Minister Kevin Rudd has said a deeply unpopular carbon tax will be replaced by a less-severe emissions trading scheme a year ahead of schedule, in a bid to lower power bills for households as a tight national election looms.
The carbon tax on Australia's worst industrial polluters, including its coal-reliant power producers, went into effect in July 2012 and was supposed to remain in place until 2015. At that point, it was set to be replaced by an emissions trading scheme, in which the cost of emitting a ton of carbon would be determined by buyers and sellers in a carbon market.
Rudd is advancing that timeline by a year, with the emissions trading scheme now beginning on July 1, 2014. The move will reduce the cost of carbon from a predicted 25.40 Australian dollars per metric ton in July next year to an estimated AU$6 per metric ton, Rudd said. Read more
NSW government to sell national electricity meter arms
The reorganisation of the NSW power sector has moved up a notch with the planned sale of the national electricity meter arms of Ausgrid and Endeavour Energy.
The state government is seeking to complete the sale of the power generation sector.
The proposed sale comes hard on the heels of the industry regulator the Australian Electricity Markets Commission calling for metering activities to be sold off from the energy distributors as part of a broader industry overhaul.
It also comes as Victoria's metering sector is set to become contestable from 2015.
At present, energy distributors own the metering assets, but the door is to be opened to new players.
These changes will pave the way for the likes of Macquarie Bank to move in, since it is a significant participant in this sector in the UK already. Read more
Mild winter helps cut power use in NSW, Victoria
The slump in electricity demand is gathering pace in eastern Australia, with the recent mild winter contributing to decade lows for power use in NSW and Victoria, energy experts say.
Over the fortnight to July 17, average power demand each day in NSW was 8.62 gigawatts - the lowest since last century. In Victoria, mean demand was down to the levels of a decade ago at 5.83 gigawatts, according to data compiled by the Melbourne Energy Institute.
While experts cautioned against reading too much into a short period, the trend towards milder winters is one factor reducing energy use, particularly in homes.
Energy use in the home is linked to minimum daily temperatures in winter, and these are trending higher, as global warming models had predicted, said Professor Mike Sandiford, director of the Melbourne Energy Institute. "Most of the warming occurs where the blanketing effect is the most, and that's at night, in winter and at higher latitudes." Read more
WA approves 40 MW tidal energy plant for Kimberley
Western Australia's Kimberley region is set to get the state's first full-scale tidal energy power station.
The WA government has approved Tidal Energy Australia's plan to build a wave power station at Doctor's Creek, near Derby.
It will generate 40 megawatts of electricity - enough to power up to 15,000 homes. Read more
ACT electricity prices to rise
Canberrans will be slugged with a 3.5 per cent increase in electricity bills from July, after the independent regulator released its final decision on retail prices on Friday.
The Independent Competition and Regulatory Commission has estimated electricity costs for a typical customer - one using about 8000 kilowatt hours per year - will rise by about $63, or $1.21 a week.
Senior commissioner Malcolm Gray said network charges and the ACT Energy Efficiency Scheme, which began in January, were to blame for the price rise.
''The rise in regulated retail tariffs is largely attributable to increases in network charges, accounting for a little less than two-thirds of the change, with the full-year effect of the ACT Energy Efficiency Scheme accounting for a little over one third,'' Mr Gray said. ''Although accounting for about one third of the change in prices, the scheme will only account for about 2 per cent of the cost of electricity.'' Read more
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NEW ZEALAND ENERGY HEADLINES
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Meridian sells Aust wind farm stake - dividend looms
The government looks set to receive a windfall whopper dividend from Meridian Energy following the sale of its 50 per cent stake in the A$1 billion Macarthur wind farm in Victoria.
The sale, which valued state-owned Meridian's holding at A$659 million, comes right on balance date for what is likely to be Meridian's last financial year under 100 per cent state ownership, with a float of up to 49 per cent scheduled for the third quarter of this year, market conditions permitting.
Meridian chief financial officer Paul Chambers told BusinessDesk there would be no "special dividend" triggered by the sale, but that the net proceeds of the transaction would flow through to Meridian's underlying earnings, on which it has a policy of paying 90 per cent as dividends. Read more
Meridian sale edges closer
The partial privatisation of Meridian Energy has moved closer with the start of marketing for its planned share market float but decisions about the size and timing of the offer have yet to be made, sources said.
The "pre-deal roadshow" will involve top executives, such as the big state-owned power generator's CEO Mark Binns, talking to the investment community, followed up by site visits. But the presentations will not contain details of the company's likely capital structure, they said.
Meridian's annual accounts are due in August and a sale is likely in October. The Treasury is expected to soon appoint brokers for the offer. Read more
Consumer Watch: Buy cheap and shiver
People should not buy low-wattage heaters expecting to save money on heating, experts say. Low-wattage electric panel heaters, such as the heavily-advertised Econo-Heat or Ecosave panel heater, are marketed as cheap options. Many are only 400W, compared to 2kW for a small fan heater.
But Energy Efficiency and Conservation Authority technical adviser Christian Hoerning said a 400W heater would give the heat equivalent of only two to four lightbulbs.
"Most rooms need six or 10 times that," he said.
People often bought low-wattage heaters such as panel heaters thinking they would be cheap to run.
They cost about 9c an hour, against more than 50c for a standard electric heater. But people would generally have them on much longer.
"They use a lot of electricity because they are on even when you're not using the room. People are better to buy a much gruntier electric heater, turn it on to heat up the room and then when they leave the room, turn it off. That's more economical.
"The bigger heater uses more electricity when you are running it but much less overall." Read more
Cut-price power bid for elderly
Grey Power is trying to negotiate a deal for cheaper power for its 64,000 members amid reports some elderly are not heating their homes because it is too expensive.
Power bills have risen $65 on average nationwide in the last year. The price of power in Tauranga increased by $83, figures released this week by the Ministry of Business, Innovation and Employment show.
Grey Power Tauranga president Christina Humphreys said the issue had become so serious the organisation was in the process of arranging a national deal with a power company that would make power more affordable for seniors. Read more
Participation high for Transpower's demand response programme
Transpower has received a very positive response to its new demand response programme.
Demand response allows electricity consumers to be paid to reduce their electricity demand temporarily. Transpower's Demand Response programme will allow better management of situations when electricity demand would otherwise overload the grid ie during a heat wave or cold snap, therefore avoiding the need to invest in costly new lines and assets.
Transpower's Chief Executive Patrick Strange said that it was pleasing to see so many responses to participate in the new programme.
"The interest in the programme is high, with eleven parties signing up to provide demand response. Positively, the participants vary from commercial businesses, to electricity industry participants, and larger industrials."
"We also received a greater amount of demand response than expected, with 128 MW offered compared to our target of 100 MW. It was also offered at a lower cost than anticipated, which makes demand response a real, and very exciting opportunity, for New Zealand." Read more
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INTERNATIONAL ENERGY HEADLINES
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Barclays pledges to fight US energy fine
Barclays, Britain's second-biggest bank, vowed to fight almost half-billion dollars in fines for manipulating electricity prices in California and other western states, setting the stage for a courtroom battle with U.S. regulators.
The Federal Energy Regulatory Commission ordered the U.K.-based bank and four of its former traders to pay $453 million in civil penalties for fixing power prices between November 2006 and December 2008.
The U.S. energy watchdog also ordered Barclays to pay $34.9 million, plus interest, for what it described as "unjust profits" made on energy assistance programs for low-income families in Arizona, California, Oregon and Washington.
"We believe that our trading was legitimate and in compliance with applicable law," the bank said in a statement, adding it had cooperated with the investigation.
"We intend to vigorously defend this matter," Barclays said. Read more
Unfair Competition? EU Takes on German Green Energy Law
German renewable energy is being subsidized through a charge on energy bills -- but many companies are exempted from the charge.
The European Commission plans to launch a probe this Wednesday into Germany's renewable energy law. Brussels says it breaches EU competition law because it exempts many companies from charges levied to fund green subsidies.
The European Commission plans to open proceedings on Wednesday against Germany's renewable energy law on the grounds that it breaches EU competition regulations.
Under the law, German electricity users pay a charge that goes towards funding renewable energy generation. Competition Commissioner Joaquin Almunia believes that exemptions granted to some energy-intensive German companies from those charges run counter to EU law.
The Commission plans to launch proceedings aimed not only at banning such exemptions in the future, but also requiring companies to repay the charges they were exempted from in the past. Read more
Himalayas at risk in hydro dam water grab
The future of the world's most famous mountain-range could be endangered by a vast dam-building project, as a risky regional race for water resources takes place in Asia.
New academic research shows that India, Nepal, Bhutan and Pakistan are engaged in a huge "water grab" in the Himalayas, as they seek new sources of electricity to power their economies. Taken together, the countries have plans for more than 400 hydro dams which, if built, could together provide more than 160,000MW of electricity.
In addition, China has plans for around 100 dams to generate a similar amount of power from major rivers rising in Tibet. A further 60 or more dams are being planned for the Mekong River which also rises in Tibet and flows south through Southeast Asia. Read more
'Give us electricity or the children will suffer'
Tribal elders in a northwestern Pakistani region are taking extreme measures in an effort to bring electricity to their area, saying that as long as they have no electricity they won't vaccinate their children against polio.
Several hundred residents from villages in Lakki Marwat district staged a protest demonstration on June 10 and turned away polio-eradication teams.
Village elder Zaitullah Betanai told RFE/RL's Radio Mashaal that polio teams will not be allowed to go about their work until the central government accepts the villagers' demands.
"There is an electricity supply line but no electricity, and there is no electricity transformer in the area," Zaitullah said. "We have no mosquito kits and no spray against mosquitoes is arranged so far. Also, there is no ambulance in the area. We want the government to address the four demands immediately." Read more
Energy suppliers told to weed out illegal cannabis farms
Under plans unveiled by regulators, the 'Big Six' such as British Gas would be forced to "detect, investigate and prevent" theft, where crooks hook up to a neighbour's supply and use their power free of charge.
Victims only discover the problem when they receive a huge increase in their bill. Under Ofgem's proposals, companies could be fined or even lose their licence if they fail to investigate cases.
The industry detects 25,000 cases of electricity theft a year, and estimates it costs consumers a total of £200 million, £7 per household.
Ofgem today said a third of all stolen electricity is used for cannabis farms across the country. The "farms" use up to 40 times more electricity than normal households, with a typical farm of 500 plants needing around 80 lights switched on for at least 12 hours. Read more
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THE COMPANY VOICE
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Director Anne Herrington is a founding partner of Smart Power and as such has been with the company since 1993. Prior to that she worked in the early development of the wholesale market with the Electricity Corporation of New Zealand (ECNZ).
Anne has a Diploma in Energy Management and extensive experience in the New Zealand energy market and energy pricing sectors. As well as advising Smart Power customers on energy pricing issues (wholesale market products, spot market exposure etc) and general energy management, she was a consumer representative on the Electricity Commission's retail advisory group.
Anne has also been a member of, or chaired, other advisory groups for the Commission. Anne's detailed knowledge of the electricity market is invaluable when producing submissions on industry issues for our clients.
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The ability to rate and compare the energy performance of NZ commercial office buildings has just improved with the introduction of NABERSNZ™.
NABERSNZ™ is a performance-based rating system that measures an existing New Zealand commercial office building's energy performance during operation. Based on the successful National Australian Built Environment Rating System it has been adapted to New Zealand conditions for commercial office buildings. It is licensed to the Energy Efficiency and Conservation Authority (EECA) and will be administered by the New Zealand Green Building Council. With these parties involved it is strongly positioned to become the commercial property industry standard for benchmarking energy efficiency in New Zealand.
NABERSNZ™ is a voluntary tool that measures an organisation's actual energy use against factors such as building occupancy, number of computers and rentable area. Comparing this against other similar buildings and climate conditions provides a rating on a 6-star scale. The organisation can use this to understand, and then improve, their energy performance, and in the case of building owners market their buildings performance to obtain quality tenants.
Government Agencies and are being encouraged to participate and some are already involved. We also believe that Commercial Building owners will also have a strong incentive to adopt it with demand coming from tenants looking to understand exactly what they are getting when they rent and what their on-going costs are likely to be.
Smart Power supports this initiative as an excellent way to understand your buildings energy use and to identify opportunities to "do it better". We feel that it will encourage quality buildings with lower long term operating costs which will ultimately be to the benefit of all New Zealanders.
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