OPINION

Businesses looking to reduce their costs and environmental impact may find one of the most efficient ways to do it is to start generating their own electricity.

By taking ownership for generating at least
some of the energy they use, businesses and individuals are able to neatly skirt the issues of partly or fully relying on the national grid, while also becoming more sustainable.

The national energy supply has served New Zealand adequately for many years, but there are considerable problems becoming more and more apparent.

Energy security is a huge concern worldwide and in New Zealand, and this has been highlighted in a variety of ways in recent years.

Infrastructure breakdowns, human error and geopolitical tensions have shown the fragility of energy supply in this country, and even freak events like bird strikes have left thousands being left without power.

Every winter in New Zealand seems to be marked with warnings about tight power supply. Earlier this month, homes and businesses in north Auckland faced 5 degree mornings without power for two days in a row.

We may have just passed the shortest day of the year, but that’s by no means the middle of winter so it’ll be some months until we’re out of the woods.

When businesses can get power, it’s expensive.

In GHD’s recent SHOCKED report, conducted among global energy sector senior executives, 74 per cent of energy sector leaders said energy prices were the biggest contributor to inflation.

Closer to home, the report found 72 per cent of New Zealand energy leaders said energy supply disruption was the number one concern for their organisation.

Energy prices are expected to keep increasing in the coming years.

All of this is happening against the backdrop of energy suppliers and businesses coming under increasing pressure to decarbonise. It’s a massive, multidimensional squeeze, and one that 94 per cent of global energy leaders, including those in New Zealand, have told us is the most severe energy crisis their market has ever experienced.

These issues could be addressed in part by some businesses establishing their own supply.

Solar and wind electricity generation technology tend to be best suited for businesses. The technology around these options has advanced rapidly in the last decade, to the point where they can provide a significant proportion of the energy businesses require to operate.

In doing so, those businesses that are heavy users of power could not only offset energy insecurity and rising costs, but can go a long way to achieving carbon neutrality.

Products that claim to be “green” are increasingly being seen as premium on the global market, sought after by end consumers and businesses that take into account the sustainability of their partners and suppliers.

Now is the time to start looking into energy generation. The ideal solution is different for each business, based on a range of different factors.

Understanding what that looks like, and importantly, what the upfront investment is, means you can plan ahead of time and action it when you’re ready.

Businesses making the leap into energy generation now have the opportunity to position themselves as sustainability leaders.

The private sector has an important role to play in New Zealand’s transition to a carbon-neutral economy by 2050, and there’s significant value in being an enabler in this space.

Not only is it a sound business decision, it’s a chance to invest in an aspect of your operation that will only become more significant in the coming years.

Nick Eldred is GHD Future Energy Technical Director