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Auckland Slow Carbon Transformation
Auckland Slow Carbon Transformation
MAYORS FOREWORD
The Auckland Plan lays the foundation for Aucklands transformation to a highly energy resilient, low carbon city through a focus on green growth. It sets a bold target of reducing greenhouse gas emissions by 40% by 2040. This discussion document is the first step in the process towards having an agreed strategy and action plan for Auckland. Internationally, cities are taking the lead for their region on this issue. One of the major lessons is the opportunities to be gained from cooperation and collaboration. Auckland Council has prepared a discussion document that is the first step towards building a collaborative energy and climate change strategy for Auckland. We intend to have multiple workstreams to identify potential opportunities - for example, looking at building retrofits, electric vehicles, more local energy production, carbon sequestration, transport and waste. We are keen to work with you on these, and other ideas that could provide exciting business opportunities and accelerate Auckland on its journey towards a low carbon city. Now is the time to respond to the challenges of building liveable cities - such as climate change, alternative energy sources, de-carbonising the economy, efficient and effective transport and buildings, managing waste - and I welcome your input into the transformational work ahead of us all.
CONTENTS
Our response ...............................................................................................................................................6 Purpose of the discussion document .................................................................................................6 Why do we need a strategy ..................................................................................................................7 Transforming Auckland to be a low carbon energy resilient sustainable future .................................................................................................. 14 Opportunity 1: Providing greater transport choice and reducing private motor vehicle dependency ................................................................................................................. 15 Opportunity 2: Reducing reliance on fossil fuels for transport ............................................. 18 Opportunity 3: Reducing the consumption of energy in Aucklands buildings ............... 20 Opportunity 4: Managing the growth in Aucklands peak demand for electricity ........ 24 Opportunity 5: Diversifying Aucklands electricity generation options ............................. 28 Opportunity 6: Providing for Aucklands energy infrastructure ............................................. 32 Opportunity 7: Greening Aucklands growth and developing a well-functioning city ......................................................................................................................... 35 Opportunity 8: Reducing non-energy emissions and increasing carbon sinks ................ 39 Implementation ...................................................................................................................................... 42 Delivery timeframes .............................................................................................................................. 43 How can I be involved? ........................................................................................................................ 43 Appendix 1 ................................................................................................................................................ 44 Appendix 2 ................................................................................................................................................ 45 Glossary ...................................................................................................................................................... 46
Acknowledgement Auckland Council would like to thank the Energy Efficiency and Conservation Authority for its assistance with the ASB, National Institute of Water and Atmospheric Research and Air New Zealand case studies. All these projects were finalists or winners in the 2012 EECA Awards. For more Awardwinning examples, see www.eecabusiness.govt.nz/awards
CITIES AROUND THE WORLD ARE AT THE FOREFRONT OF A GLOBAL TRANSFORMATION TO A SUSTAINABLE, LOW CARBON FUTURE. AUCKLAND IS PART OF THE SHIFT AND A NUMBER OF FACTORS ARE DRIVING THIS TRANSFORMATION.
There are increasing concerns about Aucklands energy security and affordability given rising fuel prices and dependency on imported energy. Climate change and the need to cut greenhouse gas (GHG) emissions is recognised as a priority, as Auckland grows ever larger. The global recession has led to a search for new growth sectors, while economic pressures mean that Aucklanders are more aware than ever of the costs of energy. The world is now shifting towards greener forms of economic growth (or green growth) with higher standards of living while aspiring also to environmental sustainability in all its forms1.
Leveraging opportunities and benefits of a low carbon Auckland Transforming Auckland to a sustainable, low carbon future brings major opportunities for our economy and for the enhancement of our environment and overall liveability, including: The potential to stimulate commercial development opportunities, business capability and green growth through the development, commercialisation and deployment of clean technologies and smart thinking that will transform existing sectors and create dynamic new ones; More profitable businesses through increased productivity and competitiveness due to improved energy efficiency, reduced exposure to Emissions Trading Scheme costs and costs of carbon, and increased uptake of renewable energy; More homes heated adequately by affordable energy; Reduced greenhouse gas emissions and improved air quality (and associated health benefits) due to an increased uptake of renewable energy sources and technologies (e.g. biofuels, electric vehicles) including improved vehicle fuel efficiency; reduced vehicle usage and associated congestion, and increased walking and cycling, that reduce the use of and reliance on fossil-fuel-based energy; Improved public health and reduced cost in public spending on health-related issues. For example, Aucklands buildings are not built to cope with current or projected changing climate conditions. Our housing stock is commonly damp, cold and difficult to heat. This inefficiency contributes to peak electricity demand in winter, resulting in greater GHG emissions and also contributes to poor health for occupants;
Green growth means fostering economic growth and development while ensuring that the natural assets continue to provide the resources and environmental services on which our well-being relies. To do this, it must catalyse investment and innovation which will underpin sustained growth and give rise to new economic opportunities.
OECD. Towards Green Growth: A summary for policy makers, May 2011
Greening New Zealands Green Growth. Report of the Growth Advisory Group (2011). Ministry of Economic Development. Wellington, New Zealand It is estimated that between 20% and 33% of homes in the Auckland region have little or no insulation, and 57% of the regions 439,000 homes were built prior to 1978, when the first requirements for insulation were introduced
Greater resilience to oil price volatility and potential supply disruptions through reduced dependency on imported transport fuels; Enhancing Aucklands profile and reputation through green growth, as an emerging innovation hub of the Asia Pacific Rim and reinforcing our position as a key export and tourism hub.
A low carbon economy is the fastest growing market globally. It is estimated that a clean economy could result in a NZ$150 billion high value low carbon export economy by 2025.
PricewaterhouseCoopers (2009) A clean economy vision for New Zealand in 2025. NZTE, Auckland, New Zealand
Transforming Auckland to a sustainable, low carbon future, through a focus on green growth brings many challenges including the need for high levels of investment. However, the costs of inaction will be even higher3.
The Stern Review into The Economics of Climate Change in 2006 (and subsequent revisions) estimated a cost of 2% of annual global GDP to stabilize global emissions, compared with costs of between 5% and 20% in a business-as-usual scenario. Stern, N (2006) The Economics of climate change: Client report for HM Treasury. London, United Kingdom
OUR RESPONSE
Auckland Council and its partners and key stakeholders (including government, business, non-government organisations, academia and communities) are working together to develop an Energy and Climate Change Mitigation Strategy. It is a strategy for Auckland, rather than an Auckland Council strategy and its development and implementation will be collaborative and transformational. This discussion document starts the conversation on the development of the strategy by: Introducing the key energy and climate change mitigation (reducing our emissions) issues, Setting out initial ideas and thinking, and Asking how Auckland, in becoming the worlds most liveable city, can: plan quality, compact communities and development, secure reliable, efficient, clean and affordable energy, reduce greenhouse gas (GHG) emissions, and maximise the economic opportunities from the transformation to a sustainable, low carbon city.
Projections indicate that without interventions, Aucklands GHG emissions could increase by up to 46% by 2025, a faster rate than New Zealand as a whole. This is expected to be strongly driven by Aucklands fast growing population and associated development, and an economy, urban form and lifestyle which are based on high energy consumption, especially transport and electricity.
Target Agriculture Waste Industrial Process Fugitive (non energy) Transport - Air
Transport - Sea
4000 2000 0
Transport - Land Stationary Energy Manufacturing and Industrial Stationary Energy - Commercial
-2000
Stationary Energy - Residential
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1990 2009 2031 nBAU (No ETS) 2031 nBAU (No ETS) 2031 GHG Mitigation Target
Forestry
Figure 2 Aucklands emissions projections5,6 As New Zealands largest and fastest-growing city, reducing Aucklands emissions can increase the citys living standards and economic prosperity. Doing so represents an enormous challenge and a unique opportunity. The challenge for Auckland is to separate the link between GHG emissions and development, economic growth and energy use. This will require a transformation from a fossil fuel-dependent, high energy-using, high-waste society to a more liveable city based on; sustainable resource use (including waste minimisation and recycling), a quality compact form, an eco-economy and the pursuit of green growth, and efficient transport and energy systems that maximise renewable resources, and minimise reliance on fossil-based fuels.
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Ibid This projection is based on a simplistic or nave Business As Usual (nBAU) model of applying current consumption levels to projected population and economic growth
This commitment is conditional on a global agreement being secured that limits carbon dioxide equivalent (CO2-e) to 450ppm and temperature increases to 2C, effective rules on forestry, and New Zealand having access to international carbon markets.
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A direct and immediate economic cost is also incurred on greenhouse gas emissions through the introduction of the emissions trading schemes putting a price on carbon both in New Zealand and overseas. While the New Zealands Emissions Trading Scheme (ETS) is the primary mechanism to achieve low-cost national emissions reductions, local government can play an important role in supporting a range of complementary measures needed to work alongside the mandatory approach of the ETS. Issues to be considered include: addressing market failures not expected to be adequately addressed by the ETS or that impinge on its effectiveness in driving emissions reductions (e.g. research and development failures, infrastructure provision, and information failures), removing barriers that may prevent the take up of otherwise cost effective abatement measures (e.g. split incentives9), identifying sectors of the economy where price signals may not be as significant a driver of decision making (including land use planning), and policy options which have a high cost of abatement but include substantial co-benefits.
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Auckland Council (2012) The Auckland Plan, Auckland, New Zealand A split incentive occurs when those responsible for paying the bills are different to those making capital investment decisions on the property. This leads to a split between the tenant incentive for energy efficient technology (which reduces operational costs) and the building owner who would make the capital investment in the technology (but who sees no immediate benefits from the investment).
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Our existing buildings, particularly industrial buildings, are responsible for a large share of Aucklands energy consumption and GHG emissions. Significant improvement in the energy efficiency of all types of buildings is required to moderate the projected increase in energy demand. Future increases in household energy consumption and/ or energy prices present the very real risk of increasing the number of Aucklanders experiencing fuel poverty, or finding it difficult to afford a quality lifestyle. An under- or non-insulated domestic housing stock which is cold and damp in winter and can overheat in summer, results in inefficient or unnecessary electricity usage, placing pressure on the national grid. Increased energy efficiency provides tremendous co-benefits through reduced energy costs, enhanced property values, and health benefits associated with lower levels of air pollution. Reduced energy demand may also reduce or delay the need to build new energy generation facilities, providing further capital cost savings. The Auckland Plan sets out a commitment to support the national target that 90% of electricity generation will be from renewable sources by 2025. The Auckland Plan also establishes ambitious policies to improve energy efficiency and conservation, as well as developing diverse energy resources and fostering greater use of renewable energy resources (refer to appendix 1 for more information).
We need to develop a secure, clean and affordable energy future for all Aucklanders
Why a more secure energy future is important for Auckland Energy is vital for Aucklands liveability and economic prosperity. Auckland must have certainty that it can secure long-term, reliable and affordable energy, and be able to secure renewable sources. Energy efficiency and conservation is a key opportunity in the short-term. Significant reduction in energy demand in the longerterm requires consideration of the wider system. Overall, efficient practices help to reduce levels of consumption and emissions, and thereby reduce or delay the need for costly infrastructure investment. Within the next 25 years, global energy consumption is expected to increase by one third. By comparison Aucklands energy demand is projected to increase by approximately 65% by 2031. Without effective interventions Aucklands reliance on imported energy supplies which make us vulnerable to disruptions and shortages in supply, as well as increases in the cost of energy, will become more pronounced. Auckland currently spends around $5 billion per year on energy or around 5% of its gross regional product. Forecasts indicate that by 2031 Auckland could be spending 10% of its GDP on energy, which is nearly double current levels.
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Barriers and opportunities for a more secure energy future Aucklands relatively inefficient energy use is both a hindrance to, and an opportunity to promote, the action necessary to avert the 65% growth in energy demand otherwise likely to occur over the next 20 years. It is estimated that businesses and households could reduce between 10% and 30% of the energy costs of most businesses and households can be reduced through better energy management. It is also estimated that applying currently available technologies can save 30% to 40% of energy use and GHG emissions in new buildings, when evaluated on a life-cycle basis. Aucklands electricity generation capability typically provides less than 25% of our peak demand. Auckland has a number of renewable energy generation opportunities which could assist in reducing electricity generation related greenhouse gas emissions. Opportunities are diverse and include large scale wind power, micro hydro, bioenergy, small-scale solar photovoltaics and solar hot water. The potential for greater uptake of renewable energy can be constrained by economic viability and balancing local values (e.g. natural landscapes and amenity) with broader national and global benefits. Regulatory and market barriers (including fee structures and upfront capital costs ) in building design, electricity pricing, and the availability of climate-friendly technologies, products and services, all affect the potential to bring into general use the GHG-reducing technologies and practices that will improve resilience. Some of these obstacles are market imperfections that justify policy intervention to support the diversification (the location, type and scale) of new electricity generation options and the provision of the advanced energy networks. A key driver of Aucklands energy use is an economy that is dependent on imported fossil fuels for transportation, due in most part to a high usage of private motor vehicles. This means that Auckland is vulnerable to international supply and/or price disruptions. A more efficient transport system, a wide range of transport modes, and a greater diversity of transport
fuels and alternative energy efficient technologies will reduce reliance on imported fossil fuels. Given the growth in Aucklands demand across all energy supplies, there are a number of near-term infrastructure issues which must be addressed: pressure points in the local transmission grid and distribution networks which can result in untimely outages, incompatible land uses along transmission and distribution corridors which affect their efficient operation, maintenance, and upgrade potential, the undergrounding or rerouting of transmission and distribution corridors in order to unlock development potential and improve amenity, increasing dependence on the Northland and Waikato Regions for secure and reliable fuel delivery and electricity services to be routed through Auckland, a lack of diversity in the energy system, particularly the lack of renewable energy generation capacity, Aucklands liquid fuel supply is reliant on a single pipeline from the Marsden Point Refinery to the Wiri Oil Terminal, and a further pipeline from the Terminal to the Airport. These assets are affected by incompatible land uses, given their potentially hazardous nature and the risks associated with their operation, increasing demands for secure energy stock, including natural gas, for rural production, and with the electrification of the rail network and the growth in electric vehicles, further demand will be placed on electricity generation, transmission, and distribution networks.
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The global leadership of cities Cities and urban areas are estimated to account for 80% of global GHG emissions. In response, cities around the world are leading the way in transitioning to a low carbon future (e.g. Vancouver, London and Copenhagen). Auckland recognises the urgency for decisive action and is committed to playing its part in national and international efforts to reduce GHG emissions. Ultimately, the extent of climate change and our capacity to adapt will be determined by global effort and central government policy. However, there is much Auckland can do to play its part in reducing global emissions, safeguarding its communities against the effects of climate change, and improving Aucklands liveability through greater energy resilience and security. Success in achieving our GHG reduction targets is dependent on action by everyone. Auckland Council is committed to working with government, business and local communities to identify the best policies and approaches to ensure we are ready to deal with the risks, uncertainties and opportunities associated with critical climate change and energy issues.
The need to inform planning, policy and funding plans The Energy and Climate Change Mitigation Strategy will help identify projects and initiatives requiring funding. Any new council initiatives will need to be considered in future long term plans. We will not be able to carry out all of the projects identified in the Energy and Climate Change Mitigations 30 year timeframe, and we will need Aucklanders to help us prioritise which projects should be carried out first. A new Unitary Plan is being prepared for Auckland, superseding the current regional policy statement, regional plans and district plans. The Energy and Climate Change Mitigation Strategy will help to guide the policies and rules in the new Unitary Plan. The need for comprehensive and cohesive action including many players Many projects are underway or currently being investigated that will contribute to the Energy and Climate Change Mitigation Strategy objectives. These include Transpowers North Auckland and Northland (NAaN) Grid upgrade, the Gas Industry Companys Gas Transmission Investment Project, rail electrification and the City Rail Link Project, and the Auckland Waterfront Development Plan which includes the revitalisation of Wynyard Quarter. The Energy and Climate Change Mitigation Strategy will be developed collaboratively with these partners to provide an integrated framework for project planning and delivery.
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OPPORTUNITY 1: PROVIDING GREATER TRANSPORT CHOICE AND REDUCING PRIVATE MOTOR VEHICLE DEPENDENCY
Aucklanders are highly dependent on motor vehicles as their primary method of transport. As a result, the transport sector is responsible for more than half of Aucklands GHG emissions. Furthermore, this dependence means Aucklanders are highly vulnerable to increasing and volatile international oil prices. In order to meet emissions reduction targets and improve energy resilience, Auckland needs to reduce its dependency on motor vehicles in favour of alternative transport options. The NZ ETS and rising fuel prices will provide greater incentive for Aucklanders to reduce travel and/or shift to less GHG emission intensive modes of travel. In order for this shift to be maximised and sustained alternative transport modes must be accessible, affordable and meet user demands.
Options include pull measures, such as cost incentives, increased access to and choice of transport modes, ease of use, or desirability of active or public transport; and push measures which remove some of the comparative benefits of private vehicle transport (e.g. road pricing).
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Active transport infrastructure Investment in active transport infrastructure has been found to directly correlate to increased uptake of active transport. Active transport infrastructure includes: dedicated and safe routes for walking and cycling; urban design principles to improve access and connectivity of town centres; and end of trip facilities such as secure cycle storage and changing rooms. Public transport infrastructure Investment in quality public transport is critical to provide Aucklanders with an attractive transport alternative that is a less emissions intensive, fosters compact land-use patterns and reduces reliance on imported fuels. Electric rail, while costly, is particularly beneficial from this perspective as it can reduce GHG emissions, road congestion and local pollution to a greater extent than road based options. Freight Consolidation Centres Freight consolidation centres (FCC) are distribution centres situated close to a town centre, shopping centre or construction sites, at which loads are consolidated. FCCs reduce the number of consolidated loads delivered to the target area for the final mile of the delivery. FCCs are often used near major airports and large construction projects. Freight transport infrastructure Both rail freight and pipeline transport offer opportunities to reduce road congestion, GHG emissions and local pollution, and improve energy resilience. These options require significant capital outlay and long term planning in order to provide viable alternatives to road-based distribution.
How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
The above solutions will reduce the extent of growth in travel on Aucklands road networks and therefore and will accordingly become relatively less reliant on imported fossil-based fuel.
Aucklands public transport patronage has more than doubled since 1994, from 33 million trips to 70 million trips in 2011. 16
Case Study
City Centre Transport Access Between 2001 and 2010, the number of people entering Auckland City Centre in the morning peak increased with growth in employment and student numbers. At the same time, the number of people coming into the city centre by car dropped by over 4,000 while the number of people coming in by public transport increased by over 10,000. In addition, the number of people walking and cycling into the City Centre increased during this same period. This means that between 2001-2010 all of the growth in peak travel to the City Centre (and more) was by public transport, walking and cycling while the number of people coming by car dropped.
Figure 4 The Northern Busway The Northern Busway, a dedicated rapid transit bus facility on Aucklands North Shore was opened in stages between 2005 and 2008. The busway has been instrumental in encouraging people into public transport and reducing growth in car use. Between 2007 and 2011 the number of vehicles per hour crossing the harbour bridge increased slightly (1.4%) during the morning peak, whereas the number of bus passengers coming across the harbour bridge increased by 41%.
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Between 2007 and 2011 public transport patronage increased from 52 million to 70 million, an average growth rate of over 8% for each of the past four years.
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The Auckland Plan sets a target to double public transport from 70 million trips in 2012 to 140 million trips by 2022.
processing and supply has GHG impacts, they are significantly lower than those from conventional oil based fuels. Electric vehicles Electric vehicle (EV) technologies are developing at a rapid pace, potentially offering a near-term low-GHG alternative to the petrol and diesel powered vehicles of today. With adequate investment in the necessary infrastructure, and supportive government policy, a large scale transition to EVs and plug-in hybrid electric vehicles (PHEVs) could be achieved in Auckland. This would provide lower overall GHG emissions, reduced oil dependence and many co-benefits, such as improved air quality. Ongoing public transport improvements Electrification of the Auckland rail network is occurring and by 2013 new electric trains will be operating. The existing commuter trains run on diesel. Cleaner, low emission buses also have a critical role in providing an alternative to driving. This would reduce per capita emissions of the transport system, and provide further co-benefits such as improved air quality.
How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
A shift to higher vehicle fuel efficiency, electric vehicles and biofuels would significantly reduce the consumption of oil based fuels as well as reduce GHG emissions.
Aucklands Rail patronage has increased from 2.4 million in 2002 ( the year before Britomart station opened) to 10.8 million in 2011 an increase of 350%.
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Buildings and facilities consume the vast majority of electricity and natural gas within Auckland. Increasing the energy performance of existing residential, commercial, manufacturing and industrial buildings as well as encouraging, and, over time, mandating best practice to be adopted in new buildings, will reduce total energy consumption. Reduced consumption will improve energy resilience and contribute to GHG emissions reduction.
Households account for 42% of Aucklands electricity demand (EECA, 2004). Approximately one third is used for water heating (BRANZ 2004). 20
A standard solar thermal system can produce around 55% of a households water heating needs.
Mandate compliance for new buildings with minimum design standards within specified timeframes.
Commercial buildings (including Industrial and Manufacturing) Work with developers to identify older commercial or residential areas for urban renewal projects to rejuvenate areas and improve existing building stock, Prioritise targeted large scale energy efficient retrofitting of Aucklands existing buildings by developing an incentivised retrofit programme. This might initially target owners, tenants and property developers and operate in conjunction with existing work such as EECAs energy efficiency funding programmes and the measurement of performance through the soon-to-be-introduced National Australian Building Environment Rating Scheme (NABERS), Develop innovative approaches to incentivise and promote wide spread voluntary adoption of energy efficiency and improvement programs (e.g. Toronto and Sydneys Better Buildings Partnership). Over time, increase uptake through the mandatory use of NABERS energy performance ratings on display inside buildings, Encourage the construction and operation of new world class green buildings and developments through the use of best practice standards, incentives (development bonuses to encourage green building design, use of green leases), and rewards (whole-building performancebased publicity), Introduce a mandatory disclosure policy (initially a voluntary programme) requiring commercial buildings to report on energy performance at the point of sale (and possibly for commercial leases).
Residential buildings Adopt a residential rating tool to encourage the retrofit and upgrade of existing homes to higher standards of efficiency, Introduce a mandatory disclosure policy (initially a voluntary programme) requiring property owners to report on energy performance at the point of sale (and possibly for leases), Set best practice standards for the energy efficient development of new homes and require performance demonstration with specified timeframes, Expand Auckland Councils Eco Design Advisory services in building and resource consent applications to provide one-on-one guidance on how to improve the sustainability of all new residential development, Increase Auckland Councils awareness and understanding of best practice to support green building design at all stages of contact with the building and construction supply chain.
Communities Require the planning, design and development of new urban neighbourhoods to embody sustainability principles, Zone areas as low carbon/low energy precincts to encourage and enable exemplar approaches to sustainable, energy efficient building design. For example, new developments would be designed and located to maximise passive environmental design in heating, cooling and ventilation.
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How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Reducing both total consumption and peak energy demand will over time defer the need for local network improvements, improve energy resilience and reduce GHG emissions.
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Case Study
Auckland Council helping Auckland homes go solar Auckland residents are now able to take part in a renewable energy scheme that will help them save on power bills. In an effort to create a more sustainable, resilient and liveable city, Mayor Len Brown has launched the Auckland Solar Project. The project aims to install more than 250 solar hot water heating systems in homes and businesses across Auckland this year, says Len Brown. Alongside the environmental benefits, the system can save the average household $500 on their annual power bill. As the first beneficiaries, Ruth MacClure and Tony Morpeth had solar heating panels installed in their home last August as a case study for the project and say the system has taken between 20 and 30 per cent off their power bill. Auckland Council has streamlined the consenting process and employed a leading solar energy expert to provide specifications for best-practice technology suited to Aucklands environmental conditions. There is significant quality variation in solar water heating technology. This scheme aligns best practice technology with a range of financial options that make installation affordable while still saving money on the monthly bill. The pilot scheme was endorsed earlier this year by the councils Environment and Sustainability Forum, and will be managed by Auckland-based company, Solar Group. Solar Group offered a solution to the entire project so we could sit back while it was being installed and then watch the savings kick in, says Mr Morpeth. The scheme is designed to make things easy for home and business owners, with Solar Group taking care of everything from consent application to installation.
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Slowing the growth in peak electricity demand is critical to improving Aucklands electricity resilience. It will also reduce the need to build additional electricity infrastructure and in turn, reduce upward pressure on electricity prices. Electricity security is harder to maintain when peaks in demand, and the overall shape of demand profiles, do not match the capacity of the electricity supply system. This mismatch generally requires the construction of new generators as well as additional electricity transmission and distribution networks just to meet the small time period in which peak demand occurs. Peak demand is currently supplied by natural gas which may be subject to resource and infrastructure constraints in the short to medium term.
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obtained from the industrial sector and from off-peak tariff switching of domestic electric hot water systems. Smart meters and in-home displays, when combined with appropriate retail tariffs have the potential to incentivise consumers to shift demand away from network peaks Investigate opportunities to support the fast-track roll-out of smart grid technology across Auckland, Prioritise funding of smart grid infrastructure, Develop regulatory requirements: for demand management projects to be identified and implemented by major energy consumers, and mandating major end users to install demand management technologies (e.g. smart grid technology) in new buildings.
processes to reward and incentivise sustainable performance, Develop innovative incentive approaches through public-private partnerships to support energy efficiency improvement programmes, e.g. rebates, financing pay as you save, payment through utility bills or performance contracting, Demonstrate the benefits and costs of Low Carbon Precincts to generate districtwide solutions, Reduce emissions from the manufacturing and industrial sectors by encouraging industries to collaborate and colocate to share materials, energy and byproducts, Establish a Clean Energy Innovation hub or centre to fund and to foster cross-sector collaboration and knowledge transfer, and to pilot emerging technologies, Benchmark overseas best practice to import global leadership, emerging technologies, and new thinking into New Zealand and to evaluate suitability to local conditions and market requirements.
Integrate energy efficiency information into LIM reports and through consenting processes to inform real estate agents, home buyers etc., Continue to implement smart meters and other demand management measures which will facilitate participation in peak demand management programs across Councils asset portfolio and investigate co-location opportunities for distributed energy generation and storage, Investigate options to use regulatory tools to manage potential peak demands arising from electric vehicles, Review the potential to streamline processes for connecting embedded generation including the potential for new network tariff structures that may include avoided distribution and transmission charges, Incentivise and incorporate peak demand reduction within network planning, Develop collaborative partnerships to deploy energy demand management initiatives, Introduce positive consenting or business rating
Over the next 25 years, worldwide energy use is expected to increase by one third. By comparison Aucklands energy demand is projected to increase by approximately 65% by 2031
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How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Increasing the distributed (localised) generation options reduces GHG emissions through reductions in line losses. Network improvements such as having smarter grid communications improve both network reliability and resilience. A key benefit of improved energy management is that of reduced energy demand.
Aucklands electricity demand is forecast to grow on average by 2.1% annually over the next 15 years higher than the national average of 1.7%. (Transpower, 2012)
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Case Study
ASB - EECA Awards 2012 Large Business Award Winner Energy use is down by 23% and carbon emissions by 30% and with more large-scale projects in train, ASBs energy saving is still building momentum The banks Save Watt programme, initiated in 2004, has seen a concerted focus to improve energy use across every facet of operations. ASB has invested more than $2 million in energy efficiency projects, which has already paid for itself ongoing savings are in the region of $850,000 a year. As each success is achieved, the projects become more ambitious: starting with automated lighting and HVAC upgrades, ASB now makes energy efficiency a cornerstone of new builds and refurbishment projects, with features such as LED lighting becoming de rigeur. Its new head office, ASB North Wharf, is set to be a flagship of sustainable design when it opens next year. The bank puts automation to work through lights and PC shut-down, but still focuses on the all-important human factor, using an online tool, Energy Tracker, to help influence staff behaviour. Its now looking at sharing the tool with other organisations, such as schools.
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A growing number of cities across the world are increasing the generation of electricity within their borders in order to increase energy resilience. Building integrated renewable energy, distributed hydro plants, biogas cogeneration facilities and wind farms are all examples of local generation options. Auckland has many resource opportunities available to increase locally generated electricity. However current technologies and the complex economic and governance structure of energy supply present a number of barriers to distributed (local) generation. Intermittent (for example, electricity generated by wind and solar resources which are not constant) and local generation can produce grid instability, particularly if uptake occurs in an unplanned manner.
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Small scale distributed generation The price of building renewable energy technologies is decreasing while electricity prices continue to increase. Solar potential could reduce demand for imported supply of electricity and reduce natural gas consumption. An example of a local energy producer is Watercare Services, where the wastewater treatment plant produces around 40% of its total energy needs. Large scale renewable generation Aucklands wind resources provide the largest scale opportunity for renewable generation in the region. Tidal resources may also be capitalised upon in the future. The intermittent nature of these sources must be understood and managed in order for them to play a significant part in Aucklands energy future. Key actions could include: Use planning and zoning processes to enable the diversification (the location, type and scale) of energy sources available in the region, Review, simplify and fast track statutory and regulatory instruments, as well as council processes to remove barriers to and improve the uptake of low emissions and renewable energy technologies, including small-scale generation schemes (e.g. Solar photovoltaics and solar hot water) and integrated micro generation and distribution solutions, Identify potential partnerships to establish additional peaking generation that can both supply the peak electricity demands of Auckland and provide security of supply during periods when wind, solar or tidal generation may be unavailable, Identify potential partnerships to fast-track the adoption of new and emerging renewable and low carbon technologies through catalyst projects to demonstrate commercial viability and foster education and awareness. For example, demonstration projects in schools, and tertiary institutions.
The Auckland Plan sets a target to support the national target that 90% of electricity generation will be from renewable sources by 2025.
Auckland Councils to seek partnership opportunities to trial integrated renewable technologies and embedded generation across its portfolio of buildings and facilities to demonstrate commercial viability, Adopt a district or precinct-based approach to optimise renewable energy generation and take advantage of otherwise marginal or undevelopable land,
Investigate opportunities to establish thermal networks in dense regional centres to capitalise on potential solar thermal and geothermal resources and industrial waste heat, Seek opportunities to establish an invest-tosave fund to support early adopters of greener technologies and practices, and thereby encourage innovation among their suppliers, Ensure large scale development, particularly greenfield subdivisions, are designed to accommodate neighbourhood and site scale renewable energy generation along with distributed generation and smart grid networks. For example, new developments of appropriate scale could generate a proportion of their energy needs (e.g. at least 10%) from on-site renewable energy generation. The most commonly accepted threshold is 10 homes or 1,000m2 of non-residential development though this is sometimes lower, Investigate opportunities to use isolated communities in Auckland (e.g. Great Barrier Island, Waiheke Island) as case studies to showcase clean renewable energy and smart grid networks.
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How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Increased local generation would provide greater energy resilience, reduce line losses and for renewable electricity generation there will be a reduction in GHG emissions.
Approximately 70% of the Auckland peak electricity demand is supplied by generation outside Auckland. (Transpower, 2012)
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Case Study
Vector and Hubbards a partnership for renewable energy As part of their commitment to developing practical renewable energy services for New Zealand businesses, Vector partnered with Hubbard Foods to deliver the very latest solar thin film photovoltaic (PV) technology at Hubbards manufacturing and warehousing site in Mangere, South Auckland. The thin film PV panels at Hubbards are capable of generating 20kW of free, environmentally friendly electricity during peak sunlight hours the equivalent to approximately 28,000 kW/h of electricity per year. Assuming an average household in NZ uses 8,000kw/h per annum, this solar PV system can generate enough electricity to support over 3.5 households annual consumption needs. The installation is proving very useful as an example of a commercial-scale renewable energy implementation in New Zealand. The system has been operating now for over 20 months and during that time the solar array has: Generated over 48,500kWh of electricity, and Avoided over 10.7 tonnes of carbon dioxide (CO2), Saved, as a pure offset of grid electricity (using $0.22/kWh) = $10,670.
Consistent with the decision to utilise thin film technology, electricity has been generated every day since the system was commissioned. Electricity is generated even in low-light conditions on cloudy days. Together Hubbard Foods and Vector hope to encourage other Kiwi businesses to look at more renewable, environmentally friendly sources of energy to help protect the environment for future generations.
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Projects more than $1 billion are currently underway to improve electricity transmission capacity and resilience to Auckland and Northland.
Land Use Control Auckland Council working with infrastructure providers and local communities to reduce conflicts between infrastructure provision and the aspirations of Aucklands residents. For example: reviewing lower impact designs for electricity transmission, provision/ development of shared infrastructure corridors, and improving regulatory processes for the consenting of energy infrastructure maintenance and the construction of new or upgraded energy assets.
Inter-Regional Connections Auckland Council working with neighbouring local authorities, Central Government, and infrastructure providers to ensure streamlined investment in nationally and regionally significant energy infrastructure. Examples may include the provision of new electricity transmission lines or additional natural gas connections from Taranaki.
How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Providing for major energy infrastructure will ensure that adequate levels of energy can be transported and supplied to Auckland. Otherwise, there is a risk that inadequate investment will be made in generation, transmission, and distribution networks, thereby placing over-reliance on stressed networks.
The Wiri Oil Terminal currently supplies half of NZs fuel supply, including 2.7 million litres per day or 1 billion litres per annum of Jet A1 aviation fuel (70%) of NZs demand. (Wiri Oil Services, 2011)
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Case Study
Transpower North Auckland and Northland Project It has been over 10 years since central Auckland experienced its five week long power crisis in 1998. Since then Auckland has suffered a number of power outages when national infrastructure has failed due to local issues. In one case the failure of a single metal shackle blacked out half of Auckland; in another a forklift hit a power circuit affecting on at least 700,000 people in Auckland and Northland and temporarily shut down fuel production at the Marsden Point refinery.. These incidents have highlighted the risks associated with Aucklands dependence on a small number of corridors for electricity supply as electricity demands continue to grow. Transpowers North Auckland and Northland (NAaN) Grid upgrade is designed to reinforce electricity supply to Auckland and Northland. Construction is underway for a new electricity transmission line running from the Pakuranga substation to Albany via Penrose and Central Auckland. This project involves the laying of 37 kilometres of new cable, a new substation at Albany and substation expansion at Hobson Street and Wairau Park. Costing $415 million, this project will help build the resilience of the national grid and allow for the projected 2.1% p.a growth in Aucklands electricity demand. This project will be followed by other electricity transmission and distribution projects in the coming decades, as aging assets are replaced, electricity demand grows, and the introduction of smart grid technology pushes for new infrastructure design.
Public car parking and charging stations for electric vehicles - Olso, Norway
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Support the transfer, adaptation and adoption of existing knowledge and technology between Auckland and trading partners to support green growth.
How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Green Growth provides opportunities to improve Aucklands economic prosperity. These include the potential to stimulate commercial development opportunities through the development, commercialisation and deployment of clean technologies and smart thinking which will transform existing sectors and create dynamic new ones. The characteristics of a quality compact city support efforts to improve energy efficiency and resilience and to reduce GHG emissions through: the greater use of public transport, and walking and cycling options which benefit Aucklanders health as well as lowering emissions, high density and mixed land use patterns which reduce the demand for travel and shorten trips, potential for more efficient infrastructure, and improved resilience of transport and utility networks and an ability to manage peak demands and resource scarcities including peak oil.
Develop and distribute to interested parties a fact-based narrative about Aucklands place in the world as a competitive trading economy with comparatively strong green credentials,
The OECDs 2011 Economic Survey of New Zealand recommended New Zealand should look to become the leading exporter of technology that mitigates greenhouse gas emissions from agriculture and prioritise green growth. Green growth would be a key advantage and policies to pursue inclusive economic growth with sound environmental effects are essential to secure New Zealands natural advantages in international competition. Developing a well-functioning city Implement the Auckland Plans development strategy for a transition to a quality compact city, supported through the development and implementation of local area plans and appropriate development controls, Invest in catalyst projects and exemplar building design could also assist in delivering the desired outcome, Adopt a low carbon/low energy precinct approach to development incorporating integrated local energy solutions (e.g. distributed generation, smart grid networks, small scale renewable electricity generation), and world class standards for energy efficiency in buildings, infrastructure and travel modes.
The low carbon market is the fastest growing globally. A clean economy could result in a $150 billion high-value low carbon export economy for New Zealand by 2025. 36
Auckland is ranked as the 3rd best city to live in the world in Mercers 2011 Quality of living survey.
The Auckland Plan sets a target to improve Aucklands OECD ranking of cities (based on GDP per capita) of 69th in 2011 by 20 places by 2031.
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Case Study
Air New Zealand - EECA Awards 2012 Supreme Award Winner The airline has rooted sustainability firmly in its brand and culture - slashing fuel use and carbon emissions, and boosting its international reputation. Air New Zealands pledge to grow the business, not our footprint permeates the airlines culture, with every department charged with its own sustainability targets. More than a quarter of Air New Zealand staff have volunteered for the green team, making them eco-champions across the business and externally through community projects in New Zealand and the Pacific. Its drive to cut carbon emissions since 2005 has brought stellar savings of 142,000 tonnes of CO2 a year, through a 15% fuel reduction. To date this has saved more than $500 million in fuel costs. Its scoured operations for efficiencies - reducing on-board weight, introducing just-in-time fuelling and technical innovations including aerodynamic winglets on its Boeing 767s. As well as fuel efficiency, the company is driving a shift to renewables, fuelling on-ground vehicles with B20 biodiesel and trialing the worlds first biofuel-powered commercial flight in 2008. A $2 billion investment will give Air New Zealand by 2014 the worlds newest and most advanced commercial fleet lifting performance even higher.
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Auckland sent 1.174 million tonnes of waste to landfill in 2010 (KPMG, 2011)
Forestation of Riparian and Marginal Land Planting forests on riparian and marginal land represents a bio-sequestration opportunity for Auckland, while also addressing land management and water quality issues. Biochar Biochar is the product of thermal degradation of organic material in the absence of air using a process known as pyrolysis and may be used as a soil conditioner. Various potential benefits can be obtained using biochar to lock carbon in soil, improve farm productivity, as well as reduce nutrient leaching. Biochar may also assist the agricultural sector in meeting its 2015 obligations under the NZ ETS. Marine Sequestration In order to enhance and restore the capacity of marine ecosystems to sequester carbon, Auckland Council could invest in the regeneration process by managing coastal ecosystems to create conditions conducive to rapid growth and expansion of seagrass, mangroves, and salt marshes. Industrial process emissions There are opportunities for capturing carbon dioxide from industrial process emissions by trialing and applying new and best practice techniques. For example Glenbrook Steel Mill is using a sequestration process utilising algae, which produces biofuels and/or biopolymers. Zero Waste Recycling has been shown to have a high environmental benefit. There is an opportunity to capture the significant regional biomass resources (including agricultural, vegetable crop and forestry residues and kitchen scrap and garden waste) to be converted to energy or with nutrients returned to the land through composting, with the additional benefit of avoiding the release of methane into the atmosphere. Sewage to energy Aucklands waste water treatment system already produces a significant proportion of its energy needs, but there is a potential to increase that proportion. Agriculture There are a range of farming practices being investigated worldwide to reduce both methane emissions from livestock and nitrous oxide emissions from soils. These include such measures as feed replacement, irrigation management, crop rotations, sowing techniques, liming and enhanced efficiency fertilisers.
How would these solutions contribute to improved energy efficiency, resilience and security, and emissions reduction?
Emission reductions can be achieved for non energy emissions, industrial process emissions, landfill emissions and synthetic gases. Marine and terrestrial sequestrations lock up GHG emissions as well as providing many environmental co-benefits. Waste to energy and sewage to energy offer the dual benefits of reducing emissions and diversifying decentralised energy production.
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Case Study
National Institute of Water and Atmospheric Research - EECA Awards 2012 Innovation Award Commendation Landfill biogas is captured, cleaned and used as truck fuel in a ground-breaking project that creates renewable energy from waste. An innovative collaboration between NIWA, Greenlane Biogas, DieselGas International and landfill operator TransPacific Industries, has created a rubbish truck running on waste-derived biogas at the Redvale Landfill. The truck is used 250 days a year, substituting nearly 12,000 litres of diesel with biogas reducing CO2 emissions by 29 tonnes a year. Unlike other landfill gas projects, the gas is extracted continuously while rubbish is added to fill - recovering 90% of available biogas. Technically advanced gas scrubbing removes impurities and produces biogas with quality close to that of reticulated natural gas - so it can be used as transport fuel with few restrictions. The design of the dual-fuel truck is also an innovation: its powered by a mixture of diesel and bio-methane with a unique fuel feed system which means it can run without modifications to the engine. Its a model that could be easily replicated in New Zealand or overseas. Electricity needed for the process is also generated on-site using biogas, creating a neat closed loop energy supply.
Redvale landfill
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IMPLEMENTATION
Requires multi-sector commitment and actions It is important to note that the Energy and Climate Change Mitigation Strategy is a strategy for Auckland not just Auckland Council. For it to succeed, the strategy needs to have the involvement and support of numerous stakeholders and the Auckland community. The strategy needs to be developed in a collaborative manner as different outcomes could have different lead players. Requires both near-term and long-term focus There is no silver bullet to energy and climate change matters, rather, success requires actions by the various stakeholders and general public over the next 30 years. Because the Energy and Climate Change Mitigation Strategy covers a 30 year period, it allows for the incorporation of new cleaner technologies when buildings are built or upgraded and when new vehicles (such as hybrids/EVs or any better efficiency vehicle) are purchased. There will also be economies of scale once new technologies are widely applied. Requires reprioritisation of funds To be successful and to realise the key co-benefits (refer Appendix 2), the Energy and Climate Change Mitigation Strategy will require significant investment over time. Funding is not something that can, or should, be delivered by the public sector alone. There are opportunities to use existing public sector funding streams to attract and unlock private sector investment. Not all financing will represent new investment and there will be a need and opportunity to reprioritise expenditure within sectors. Requires ongoing monitoring and evaluation Effective monitoring and clear evaluation are critical to the successful implementation of the Energy and Climate Change Mitigation Strategy and its focus on achieving the two Auckland Plan targets of reducing the amounts of anthropogenic GHG emissions and supporting the target of 90% of electricity generation from renewable sources. Reporting back to the community and all stakeholders is essential to demonstrate progress and therefore engender confidence and ownership of the strategy.
Further questions
35. Are there any important matters missing? 36. What should be the three main aims of the Energy and Climate Change Mitigation Strategy? 37. How would you or your organisation like to be involved? 38. Do you have any other comments?
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DELIVERY TIMEFRAMES
Next steps in developing the Energy and Climate Change Mitigation Strategy
Stage 1 Draft Energy and Climate Change Mitigation Strategy discussion document consultation From 11 June to 6 July 2012 Informal public and stakeholder consultation on the discussion document. Stage 2 - Draft Energy and Climate Change Mitigation Strategy consultation September 2012 - public and stakeholder consultation, plus industry and council technical working groups. Stage 3 Final Energy and Climate Change Mitigation Strategy adopted December 2012 Council finalises and adopts the Energy and Climate Change Mitigation Strategy.
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Appendix 1 - Auckland Plan directions and priorities The following table outlines the Auckland Plans energy and climate change directives, priorities and targets. Aucklands response to energy and climate change Strategic direction Priorities Directives Contribute to tackling climate change and increasing energy resilience 1. Mitigate climate change Make progress towards the Auckland Plans emissions reduction target and take a coordinated approach to transitioning, through green growth, to a sustainable Auckland. Protect, enhance and increase Aucklands green infrastructure networks. 2. Energy efficiency, security and resilience Improve energy efficiency and conservation (in both supply and use) through: A quality compact city form that is well integrated with a multi-modal transport system A transport system that reduces reliance on non-renewable resources and improves energy efficiency Energy efficient development and design, by i. ensuring development is assessed using an appropriate ratings tool along with the provision in Aucklands Unitary Plan and ii. supporting the retrofitting and redevelopment of residential, commercial and industrial buildings. Increase energy resilience by diversifying the location, type and scale of energy sources and fostering greater use of renewable energy resources available in the region. Targets Reduce the amounts of anthropogenic greenhouse gas emissions by: 10%-20% by 2020 based on 1990 emission levels, 40% by 2040 based on 1990 emission levels, 50% by 2050 based on 1990 emission levels. Support the National target of 90% of electricity generation from renewable sources by 2025.
The emission reduction targets set through the Auckland Plan will be subject to periodic review.
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Economic
Environmental
Social
Cultural
Co-benefits
Endurance
Biodiversity
Productivity
Employment
Water quality
Local knowledge
Housing affordability
Waste to landfill
Energy security
Cost of living
Opportunities/Initiatives
Opportunity 1: Providing greater transport choice and reducing private motor vehicle dependency
E.g. Travel demand management, active transport infrastructure, public transport infrastructure, freight consolidation centres.
Appendix 2 - Potential Energy and Climate Change Mitigation Outcomes and key benefits
E.g. Waste to energy, sewage to energy, forestation of marginal and riparian land, biochar and marine sequestration.
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GLOSSARY
Acronyms and abbreviations CO2e ECCM EECA ETS EV FCC GDP GHG IPCC KWh LIM LNG PHEV Carbon dioxide equivalent/s Energy and Climate Change Mitigation Energy Efficiency and Conservation Authority Emission Trading Scheme Electric vehicle Freight consolidation centre Gross domestic product Greenhouse gas Intergovernmental Panel on Climate Change Kilowatt hours Land Information Memorandum Liquefied natural gas Plug-in hybrid electric vehicle
Distributed generation Also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or distributed energy, refers to as small scale electricity generation that is used onsite and/ or connected to the distribution network. Ecological efficiency A measurement of how much energy is used at different stages in the food chain or at different trophic levels. Energy resilience The capacity of an energy system to tolerate disturbance and to continue to deliver affordable energy services to consumers. A resilient energy system can speedily recover from shocks and can provide alternative means of satisfying energy service needs in the event of changed external circumstances. Fuel poverty A household is said to be in fuel poverty when they cannot afford to keep adequately warm at a reasonable cost given its income. Greenhouse gases Water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4) and ozone (O3) are the primary greenhouse gases in the Earths atmosphere. Also includes human-made gases such as the halocarbons and other chlorine and bromine-containing substances. Due to their ability to absorb and emit light of a particular wavelength they contribute to the greenhouse gas effect, whereby more than the normal amount of atmospheric heat is retained in the atmosphere. Industrial activities Manufacturing, construction, wholesale trade, transport and storage sectors of the economy. These activities typically require large sites. Low carbon precinct A defined geographical area where a range of coordinated actions take place over a set period involving stakeholders with the express purpose of reducing carbon emissions.
Auckland Plan The Auckland Plan is a 30-year plan for Auckland. Required by legislation that established the new Auckland Council, it is a comprehensive long-term strategy for Aucklands growth and development and includes social, economic, environmental and cultural objectives. Climate change Climate change refers to a change in the state of the climate that can be identified (e.g., by using statistical tests) by changes in the mean and/or the variability of its properties, and that persists for an extended period, typically decades or longer. Climate change may be due to natural internal processes or external forcings, or to persistent anthropogenic changes in the composition of the atmosphere or in land use. CO2 Equivalent The amount of a greenhouse gas (e.g. methane) needed to have the same greenhouse gas effect (warming of the earths atmosphere) as a defined amount of carbon dioxide.
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Low carbon economy A low carbon economy can be best understood as the range of activities which are supported by the need to reduce the release of carbon dioxide into the atmosphere. This umbrella concept covers activities: Focused directly on using fossil fuels more efficiently and using clean, secure and affordable sources of energy; That prevent the release of emissions into the atmosphere, or remove carbon dioxide from the environment (such as carbon capture and storage facilities); That support the transition to less carbon intensive operations (such as carbon finance and carbon trading activities); That procure and manage resource-efficient, zero or low-carbon infrastructure, buildings, products and services; That support accessible, efficient, low-carbon transport; Whereby consumer decisions are influenced by resource impacts.
Mitigation Actions or interventions to reduce the sources or enhance the sinks of greenhouse gases. Renewable energy Energy generated from solar, wind, hydro-electricity, geothermal, biomass, tidal, wave, or ocean current energy sources. Carbon sequestration Any process, activity or mechanism that removes a greenhouse gas or a precursor of a greenhouse gas from the atmosphere. Smart grids An electricity network that can intelligently integrate the actions of all users connected to it generators, consumers and those that do both in order to efficiently deliver sustainable, economic and secure electricity supplies.
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AC1165