The New Zealand Green Building Council welcomes the Government’s Gas Transition Loan Guarantee Scheme announced today, with our big gas users needing help like this to speed their journey towards electrification and greater use of bio energy.
Read the Government announcement here
New Zealand’s declining natural gas supply has pushed electricity prices to record levels, forced industrial users to scale back production, and increased the risk of winter shortages. We have lost $5.2 billion in GDP already due to gas shortages.
Energy costs are a contributing factor to large reductions in production of some industries – our nation’s energy intensive industries saw a 57% reduction between 2020 and 2025.
Now that big industry has been offered some much needed assistance, it’s time to look at the large amount of gas being used inefficiently in New Zealand homes, says NZGBC chief executive Andrew Eagles.
“This is great first step and one that we’ve been calling for, “he says. “Now it’s time to offer similar help to those households who have faced multiple energy price rises recently, some of 20% or more.”
There is a risk that lower income families get left behind - unable to afford to move off gas they are faced with higher and higher prices.
There are huge opportunities to save both electricity and gas in the domestic market. Recent NZGBC research shows supporting homes and buildings come off inefficient resistant heaters and on to heat pumps for space and hot water could deliver $1.5bn in savings for NZ households and save 6-10% of all electricity -enough to power all of Wellington.
“Support should be provided for hot water installations as other countries are doing including Australia, Europe, the United States and Canada,” says Eagles. “Rolling out hot water heat pumps to New Zealand homes means much cheaper power bills for families and healthier homes.”
“We would also urge Government to take this opportunity to permanently shelve its plans for an LNG importation facility,” says Andrew Eagles. “Our research finds the Government’s plan to start importing LNG for electricity generation would cost households and businesses $6.9 billion by 2050, drive up energy prices, and as we have seen recently, exposes the country to another volatile global fuel market.”
“New Zealand can meet its looming energy shortfall cheaply and more securely by accelerating hot water heat pump update and solar.”
This is a great step from Government. Something we have been calling for for some time. As we move away from dependence on gas, lets finish the job. Let’s see a similar programme being provided for Kiwi families to electrify their homes.
NZGBC has just released its election year manifesto – outlining a suite of options to help cut energy bills for New Zealand businesses and families, while increasing energy resilience.
Read that here
More NZGC energy research:
Protecting industry, jobs and household budget as the gas runs out
Heat pumps could cut household energy bills by $1.5bn per year, help protect thousands of Kiwi jobs.