Statement of Performance Expectations - D.1.SPE(21) High contrast version - 1 July 2021 - 30 June 2022 - EECA
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D.1.SPE(21) High contrast version Statement of Performance Expectations 1 July 2021 – 30 June 2022
Contents
Foreword from the Board 2
Our strategy 6
Our three levers 7
Defining our purpose 8
The role of energy in climate change 10
The make-up of energy-related emissions 11
Our desired outcome 12
Our 2021/22 outcomes framework 14
Our funding 16
Our strategic focus areas 19
Productive and low-emissions business 20
Efficient and low-emissions transport 22
Energy efficient homes 24
Government leadership 26
Engage hearts and minds 28
Financial information 30
Financial Statements 31
Statement of Accounting Policies 35
Glossary 40
Presented to the House of Representatives pursuant to section 149 of the Crown Entities Act 2004.
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in Malborough, New Zealand. in Canterbury, New Zealand.
Credit: Naz Abbas. Credit: Little Leaf Photography.
Te whakataki mai i te Poari
Foreword from the Board
Te Tari Tiaki Pūngao the Energy Efficiency to develop tailored low-emissions
and Conservation Authority’s (EECA) transition pathways and complete more
goal is for Aotearoa New Zealand to have Energy Transition Accelerator (ETA)
a sustainable energy system that supports plans than we’ve ever achieved before.
the prosperity and wellbeing of current Now, with the launch of the Government
and future generations. Investment in Decarbonising Industry
(GIDI) Fund, industry is able to accelerate
In the past year, our work towards that goal
their decarbonisation plans faster than
has been bolstered with new programmes
anticipated. We will also commence a
across the public and private sectors which
programme to help higher emitting sectors
now allow EECA to co-fund more initiatives
of the economy decarbonise through
that will accelerate the transition to a low
sector-specific decarbonisation plans.
carbon economy.
Our Gen Less platform, which was
The Board has also reviewed the Statement
established in 2019 to engage hearts
of Intent (SOI) which covers the period
and minds, continues to build momentum
2021–2025. The new SOI highlights our through public engagement campaigns
recent strategic refresh through a refined across each of the strategic focus areas.
set of outcomes for maximum impact EECA Board members (left to right):
The ambition for Gen Less is to be a Karen Sherry, Catherine Taylor, Norman Smith, Elena Trout, Dr Linda Wright and David Coull.
and the specification of priority actions leading platform for climate-positive action
that EECA will focus on to achieve these and to catalyse collective action across
outcomes. As part of this refreshed individuals, businesses and communities
strategic direction, EECA has committed and this work will continue to build
to the development of a Māori Engagement
Strategy, which aims to build appropriate
into 2021/22.
Statement of Responsibility
relationships and partnerships with Māori Transport has proven to be one of EECA’s
bigger challenges as barriers to the This Statement of Performance Expectations for 1 July 2021 – 30 June 2022 has been
based on priority areas of engagement
adoption of low-emissions vehicles and prepared in accordance with the Crown Entities Act 2004 and has been agreed with the
relevant to EECA’s purpose, strategic levers
wider transport options remain, despite Minister of Energy and Resources – the Minister responsible for overseeing and managing
and work programmes.
reduced movement brought about by the Crown’s interests in EECA. In signing this statement, we acknowledge our responsibility
This year is a critical one in the country’s COVID-19. However, we remain resolute for the information contained in this document and confirm EECA’s systems and processes
response to climate change. The to leverage our transport programmes and provide reasonable assurance about the integrity and reliability of its prospective
Government’s first emissions reduction push for change, with a specific focus on operations and financial statements.
plan, based on the Climate Change new low-emissions infrastructure and fuels
Commission’s recommendations, will be and the increasing uptake of low-emissions
in place by the end of 2021. These are technologies.
the Governments’ proposed initiatives
It is a key objective of the Government
to achieve the adopted budgets. EECA is Signed on behalf of the Board
to accelerate Aotearoa New Zealand’s
already playing a key role in accelerating
transition to a low carbon future and
emissions reductions across the economy,
EECA is better placed than ever to play
using the levers at our disposal to help
a substantial part in this transition and
ensure the country meets its future
this document outlines how we will deliver
carbon budgets.
on the expectations and confidence
Our Warmer Kiwi Homes programme saw an placed in us. Elena Trout Catherine Taylor
additional budget allocation in 2020/21 and
We again look forward to working alongside Heamana Poari / Board Chair Heamana Tuarua / Deputy Chair
an increased grant rate (to 90%) which has
the various parts of Government and the
boosted demand dramatically and with high
increasing number of players who are
demand forecast to continue into 2021/22.
committed more than ever to addressing
In 2021/22 we will continue to work the greatest sustainability challenge
with large energy-using businesses faced by humanity.
2 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 3
April 2021 Ministerial announcement for Round 1 recipients of the Government Investment in Decarbonising Industry (GIDI) fund at Woolworks. From left to right: Nigel Hales (Managing Director, Woolworks), Hon Dr Megan Woods, David Ferrier (Owner, Woolworks), Hon James Shaw, and Andrew Caseley (Chief Executive, EECA). 4 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 5
Our strategy Our three levers
Our purpose
Achieving a bigger impact
Mobilise New Zealanders to be world leaders We work to create positive change across systems,
in clean and clever energy use. using a combination of three important levers.
Our strategic principles Co-investing We co-invest in energy efficient technologies and the use
of renewable sources of energy.
When there are financial barriers, we help to overcome these and
appropriately share the financial risk to incentivise energy users
Focus Understand Define Join Display to invest in technologies and renewable sources of energy that
on impact the customer the problem the dots leadership
can make a real difference.
Pursue high-impact Focus on those it is Identify what’s Work with and Be proactive,
change with agility important to influence blocking progress connect people and have a fact-based point
and at pace. and influence them and tackle it organisations who of view, own it.
based on what they head on. can be part of achieving
care about. our purpose.
Motivating We motivate people to make clean and clever energy choices.
people We develop and communicate credible information that
will help targeted audiences to make informed choices,
Our strategic focus areas and to take action.
Productive and Efficient and Energy Government Engage hearts
low-emissions low-emissions efficient homes leadership and minds
business transport Regulating We regulate proven technologies and processes.
Motivate decision Switch to efficient Optimise New Zealand’s Lead the transition Create an enabling
We help prevent inefficient products and appliances from being
makers to accelerate low-emissions use of renewable energy to a low-emissions environment for
sold in New Zealand. We support the development of energy-related
the transition to a technologies and at home. economy. systemic change,
low-emissions fuels to move people where clean and clever policies that create the “enabling environment” energy users need
economy. and goods. energy is expected to transition to a low-emissions economy.
and demanded.
Our desired outcome
A sustainable energy system that supports the prosperity
and wellbeing of current and future generations.
6 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 7
Defining our purpose
To be clean and clever, first, we must change.
We’re talking to everyone in Aotearoa, This is a journey of growth, to adopt new
We are advocates for clean and clever energy across the generations, from our pakeke technologies, to use our power as consumers,
use. We are enablers who approach our to our mokopuna. It will take all of us and to create the system change necessary
kaupapa with passion and enthusiasm. to make this work. to sustain our future.
Our purpose: Mobilise New Zealanders to be
world leaders in clean and clever energy use.
We are a small but nimble country. We have Clean energy is renewable, low- Anything that gives you more while Energy is in everything. If making,
a role on the global stage to show what can be done emissions energy. It focuses on oranga using less energy is clever. We advocate moving, using, or throwing it away
– taking a leadership position, embodying the that balances the needs of people with for smart, adaptable, conscious, reliable produces energy-related greenhouse
ethic of kaitiakitanga, so others will follow suit. the needs of our ecosystems. ways to make and use energy. gas emissions, then it’s in our lane.
8 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 9
The role of energy The make-up of
in climate change energy-related emissions
INDUSTRIAL WASTE
PROCESSES
Climate change is the most urgent global environmental challenge
of our time. We must be bold and accelerate decarbonisation 13.6% LIGHT VEHICLES
in order to leave future generations a planet that is healthy, e.g. emissions from cars and vans
4.0%
stable and prosperous.
6. 2
%
9.3% MANUFACTURING INDUSTRIES
Ka ora a Papatūānuku, Ka ora Te Tangata.
e.g. dairy, meat, textiles, products
When the earth is well, the people will be well.
& CONSTRUCTION
ENE
e.g. plumbing, electrical services
When it comes to climate change and reducing Nearly 42%
RGY 41.7%
greenhouse gas emissions, understanding the role
of NZ’s greenhouse 6.1% OTHER TRANSPORT
of energy-related emissions is key. Emissions are
gas emissions come e.g. freight, buses, rail, domestic
created when we burn fossil fuels in our business
operations, in our homes, and in the ways we get
from energy use aviation
around – whether burning gas for manufacturing,
AGR
burning coal to create electricity, driving a petrol
I CU
5.1% ELECTRICITY GENERATION
or diesel vehicle, or catching a flight.
LT
RE e.g. gas, coal, geothermal sources
U
We cannot continue to operate in this way. 48 for electricity production
We must act urgently and decisively to reduce .1%
our energy-related emissions while adapting
to the current consequences of climate change. 3.2% AGRICULTURE, FORESTRY,
Improving energy efficiency, conserving energy FISHING
e.g. dairy/stock farming,
and increasing our use of renewable sources
horticulture, aquaculture, fishing
of energy are crucial steps we must take
to reduce our emissions profile. & COMMERCIAL
e.g. retail, hospitality, education,
For EECA, understanding the make-up
healthcare
of energy-related emissions is fundamental
to accelerating the transition to a low-emissions
economy. This is at the centre of our decision-making.
We seek to determine where we can make the biggest
impact in the shortest amount of time, then take action. 0.8% HOUSEHOLDS 1.5% OTHER ENERGY INDUSTRIES 2.1% FUGITIVE EMISSIONS
e.g. gas and wood use e.g. petroleum refining, e.g. methane release from coal
manufacture of coal and wood seams in mining, flaring of waste
gases in oil and gas production
Source: Greenhouse Gas Inventory 1990-2019, Ministry for the Environment (2021); Light
vehicles and Other transport estimates are based on data from the Ministry of Business,
Innovation & Employment (MBIE) 2019 energy balances and MBIE Energy in New Zealand
(2020). Percentages may not add up to 100% due to rounding.
10 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 11
Our desired outcome A sustainable energy system that supports the prosperity
and wellbeing of current and future generations.
Government agencies Government agencies Businesses change their attitudes and
New Zealand benefits from low-emissions collaborate on transition to a behaviours to reduce emissions
transition lessons low-emissions policies low-emissions
and initiatives economy
Government’s low-emissions policies and
Government establishes low-emissions regulations are bold and credible
transport policies and initiatives
Businesses benefit from improved
energy productivity New Zealanders
Businesses meet emissions Businesses utilise low-emissions
reduction targets choose innovations and insights
low-emissions
mobility options
New Zealand households benefit from an
efficient, well-integrated, and resilient
renewable energy system
New Zealanders change their
New Zealand adopts low-emissions New Zealanders live in energy efficient homes climate-related attitudes and
transport technologies and fuels that are warm, dry, and healthy behaviours
12 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 13
Our 2021/22 outcomes framework The activities we deliver in 2021/22 will contribute
to achieving our overall desired outcome – that
New Zealand has a sustainable energy system that
expectations set out by the Minister of Energy and
Resources in her 2021/22 Letter of Owners’ Expectations.
The work in each of our focus areas also contributes
supports the prosperity and wellbeing of current and
to a number of Sustainable Development Goals and
future generations. Our work programme aligns with
domains of the Living Standards Framework.
the Government’s priorities and is consistent with the
Government JUST TRANSITION FUTURE OF WORK MĀORI AND PACIFIC CHILD WELLBEING PHYSICAL AND MENTAL WELLBEING
Supporting New Zealanders in the Enabling all New Zealanders and
priorities¹ transition to a climate-resilient, New Zealand businesses to benefit from
Lifting Māori and Pacific incomes,
skills and opportunities,
Reducing child poverty
and improving child wellbeing
Supporting improved health outcomes
for all New Zealanders and keeping
sustainable and low-emissions economy new technologies and lift productivity and and combatting the impacts COVID-19 out of our communities
while building back from COVID-19 wages through innovation, and support into of COVID-19
employment those most affected by COVID-19,
including women and young people
Our desired Outcomes 2021/22 Sustainable The Living Standards
outcome by focus area Activities Development Goals2 Framework domains3
Productive and low-emissions business
Environment
» Businesses meet emissions reductions targets SEE PAGES
Jobs and earnings
» Businesses utilise low-emissions innovations and insights 20-21 Knowledge and skills
» Businesses benefit from improved energy productivity
New Zealand has
a sustainable energy Efficient and low-emissions transport
Environment
system that supports » New Zealand adopts low-emissions transport technologies and fuels SEE PAGES Knowledge and skills
the prosperity
» Government establishes low-emissions transport policies and initiatives 22-23 Health
» New Zealanders choose low-emissions mobility options Subjective wellbeing
and wellbeing
of current and Energy efficient homes Health
» N
ew Zealanders live in energy efficient homes that are warm,
future generations dry, and healthy SEE PAGES
Housing
Knowledge and skills
» N
ew Zealand households benefit from an efficient, well-integrated, 24-25 Income and consumption
and resilient renewable energy system
Environment
Government leadership Civic engagement and governance
1 https://www.budget.govt.nz/budget/2021/
bps/index.htm » Government agencies transition to a low-emissions economy SEE PAGES
Environment
2 In 2015, the United Nations adopted 17
global goals to end poverty, protect the
» New Zealand benefits from low-emissions transition lessons 26-27 Cultural identity
planet and ensure prosperity for all. Each » Government agencies collaborate on low-emissions policies and initiatives
goal has a number of targets to be achieved
by 2030. EECA’s activities and programmes
contribute to achieving the listed goals.
3 The Treasury’s Living Standards Framework Subjective wellbeing
identifies 12 domains that contribute to Engage hearts and minds
Knowledge and skills
how New Zealanders experience wellbeing. » New Zealanders change their climate-related attitudes and behaviours SEE PAGES
EECA’s activities and programmes help to Environment
improve the listed domains. » Businesses change their attitudes and behaviours to reduce emissions 28-29 Cultural identity
» Government’s low-emissions policies and regulations are bold and credible
Health
14 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 15
Our We are funded by the Crown from the following six Energy and Resources
appropriations within Vote Business, Science and Innovation. This Statement
of Performance Expectations provides prospective information on what
Table 2: Budget for 2021/22 by output class
funding is intended to be achieved with these appropriations, what the expected
costs will be and how performance will be assessed.
Budget 2021/22
Forecast
2020/21
Productive Efficient
and low- and low- Energy Engage
emissions emissions efficient Government hearts and
business transport homes leadership minds Total Total
$000 $000 $000 $000 $000 $000 $000
Energy Efficiency This appropriation is intended to achieve improvements in energy efficiency,
Operating revenue
and Conservation energy conservation and use of renewable energy. It includes support (a mix
Energy Efficiency and Conservation
of operational and grant funding) for decarbonisation in the State Sector
Decarbonisation Fund (SSDF), Government Investment in Decarbonising Crown funding 8,639 2,435 368 1,192 5,650 18,284 41,007
Industry (GIDI), the Low Emission Transport Fund (LETF) and the Carbon Support for decarbonisation 3,980 3,980 1,990
Neutral Government Programme (CNGP). in the state sector (SSDF)
Each year EECA makes a request to the Minister of Energy and Resources Government investment in 200 200 200
seeking an appropriation of public money. The Crown recovers the cost decarbonising industry (GIDI)
of some of this funding through three levies: the Electricity Industry Levy Carbon neutral government 8,246 8,246 -
programme
(electricity levy); the Gas Safety, Monitoring and Energy Efficiency Levy (gas
levy); and the Petroleum or Engine Fuel Monitoring Levy (petroleum levy). Low emissions transport fund 6,760 6,760 -
Electricity levy funding 3,543 - 1,560 397 - 5,500 5,500
Prior to making our request for 2021/22, we consulted stakeholder groups
representing those affected by the levies on our proposed level of funding Gas levy funding 967 - 135 198 - 1,300 1,300
and the intended work programmes that will use the funds. The outcome of Petroleum levy funding - 7,500 - - - 7,500 7,500
this consultation was reported to the Minister at the time the appropriations
request was submitted. 13,349 16,695 2,063 14,013 5,650 51,770 57,497
Grants scheme for investment in 14,000 2,500 7,511 24,011 -
Grants Scheme for This appropriation is for the implementation of the projects EECA
infrastructure projects (IRG)
Investment in Infrastructure is overseeing as part of the $3 billion ‘shovel ready’ infrastructure
Grant scheme for government 19,600 19,600 -
Projects programme, which is part of the Government’s response to COVID-19. investment in decarbonising
industry (GIDI)
Government Investment This appropriation is for grants to decarbonise industrial process Grant scheme for Warm Dry - - 72,480 - - 72,480 102,950
in Decarbonising heat through energy efficiency, technology innovation, and fuel Homes
Industry (GIDI) switching where they directly reduce the use of fossil fuels. Operational support of the - - - - - - 250
investment in infrastructure
projects (IRG)
Grant Scheme for This appropriation is for grants to achieve energy efficiency and health
benefits for households through the Warmer Kiwi Homes programme. Implementation of grant scheme - - 5,272 - - 5,272 4,822
Warm, Dry Homes for Warm Dry Homes
32,949 30,695 82,315 21,524 5,650 173,133 165,519
Implementation This appropriation is for the implementation of the Warmer Kiwi Homes Other revenue 376 - - - - 376 515
of Grant Scheme for grants programme. Total operating revenue 33,325 30,695 82,315 21,524 5,650 173,509 166,034
Warm, Dry Homes
Operating expenses
Crown Energy This appropriation is for loans to fund the delivery of energy efficiency
Financial and industry support 24,608 23,166 74,980 14,052 - 136,806 140,726
Efficiency projects in the public sector.
expenses
Other operating expenses 9,113 4,179 7,335 3,089 5,650 29,366 25,870
Total operating expenses 33,721 27,345 82,315 17,141 5,650 166,172 166,596
Table 1: Budgeted capital expenditure Budget Forecast
2021/22 2020/21 Surplus/deficit (396) 3,350 - 4,383 - 7,337 (562)
$000 $000
Non-departmental capital expenses
Information technology - 332 Crown energy efficiency - - - 2,000 - 2,000 1,000
Office equipment, Loans to support the investment 2,500 - - - 2,500
150 0
fittings and furniture in infrastructure projects (IRG)
150 332 Total capital funding - 2,500 - 2,000 - 4,500 1,000
16 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 17Our strategic focus areas
In 2021/22, we will deliver activities in five strategic focus
areas to achieve the outcomes we seek.
We have outlined how we intend to measure the success
of these activities and we will report against each of these
measures in our 2021/22 Annual Report.
This will enable the public, Parliament, Ministers and
the Ministry of Business, Innovation and Employment (MBIE)
to track our progress against the commitments made
in our Statement of Intent (2021–2025).
Image: Britomart Train Station
in Auckland, New Zealand.
18 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 19The outcomes we seek
PRODUCTIVE » Businesses meet emissions reductions targets
AND LOW-EMISSIONS
BUSINESS » Businesses utilise low-emissions innovations and insights
40% of New Zealand’s energy-related
emissions comes from business
Motivate decision-makers to accelerate (12.8 MTCO2e)
» Businesses benefit from improved energy productivity
the transition to a low-emissions economy
Why business? How much it will cost The actions we will prioritise and how our success will be measured
A massive 40% of New Zealand’s energy- Budget 2021/22 STRENGTHEN IMPACT INVESTIGATE ACCELERATE
related emissions come from the business $000 MEASUREMENT NEW OPPORTUNITIES THE TRANSITION
sector. This is why business is one of EECA’s
key focus areas, we support the business Operating revenue Improve our capability to support Explore new sectors and Fast-track investment and
sector to be more productive with less businesses’ low-emissions interventions and develop implementation where high-impact
Energy Efficiency and Conservation
pathways through better data the most promising opportunities. opportunities have been identified,
emissions. Crown funding 8,639 utilisation. using all available tools and levers.
The largest portion of energy-related A
t least eight projects that
Government investment in 200
Anticipated work in this area includes demonstrate new technologies A
t least 115 ktCO2e of energy-related
emissions from businesses comes from decarbonising industry (GIDI)
in priority sectors are co-funded.
developing and implementing a plan emissions are saved annually through
the burning of fossil fuels for ‘process heat’ Electricity levy funding 3,543 to improve the way that data and EECA business co-investments.
– the steam, hot water or hot gases used 967 insights are obtained, analysed and D
ecarbonisation roadmaps are
Gas levy funding
in industrial processing, manufacturing and disseminated. completed for at least two new A
t least 90% of the emissions
13,349 priority sectors. reductions (weighted average)
space heating. The good news is, there are
Grant scheme for Government 19,600 delivered through the Government
a number of low-emissions alternatives investment in decarbonising
Decarbonisation partnerships are Investment in Decarbonising Industry
available for businesses that not only reduce industry (GIDI) developed with at least three priority (GIDI) Fund and Direct Engagement
emissions but can also lower energy costs sector organisations. business programmes are at an
32,949
and improve profitability. abatement cost to EECA below the
Other revenue 376 market price of carbon.
Businesses need to act now. EECA motivates Total operating revenue 33,325
the business sector to step up and accelerate EXPLORE NEW FUNDING A
t least 20 businesses complete an
MECHANISMS Energy Transition Accelerator (ETA).
the transition to a low-emissions economy.
Operating Expenses
B
usinesses save at least 0.5 PJs
Financial and industry support expenses 24,608 Explore new funding and delivery annually and reduce their
Other operating expenses 9,113 approaches that address the energy-related emissions as a
decarbonisation challenge. result of purchasing new energy
Total operating expenses 33,721
efficient appliances that are subject
Surplus/deficit (396) Anticipated work in this area includes to Minimum Energy Performance
exploring and evaluating alternative Standards (MEPS) and Mandatory
financing structures that leverage Energy Performance Labels (MEPL).
Government support to accelerate
the decarbonisation process. A
testing programme is completed
for at least two product classes to
assess performance against MEPS
requirements.
20 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 21The outcomes we seek
EFFICIENT AND » New Zealand adopts low-emissions transport technologies and fuels
LOW-EMISSIONS
TRANSPORT » Government establishes low-emissions transport policies and initiatives
51% of New Zealand’s energy-related
emissions comes from transport
Switch to efficient low-emissions (16.4 MTCO2e)
» New Zealanders choose low-emissions mobility options
technologies and fuels
to move people and goods
Why transport? How much it will cost The actions we will prioritise and how our success will be measured
Transport is the cause of over half of our Budget 2021/22 SCALE TRANSITION LARGE DEMONSTRATE LOW-EMISSIONS
energy-related emissions, which is why this $000 INFRASTRUCTURE FLEETS TECHNOLOGIES
is a key focus area for EECA. When we burn
fossil fuels like petrol and diesel to power Operating revenue Support the development of Work with large fleets to adopt Encourage innovation and prove the
our cars, trucks, buses, boats, trains and vehicle charging and refuelling transition plans, and provide advice application of scalable low-emissions
Energy Efficiency and Conservation
infrastructure, and increase the and technical assistance to make technologies and fuels.
planes, we produce harmful emissions Crown funding 2,435 adoption of commercially available informed decisions.
that contribute to the negative effects low-emissions vehicles and other A
t least $10 million of the Low
Low emissions transport fund 6,760
of climate change. support services. A
t least three large energy users Emissions Transport Fund (LETF)
Petroleum levy funding 7,500 incorporate transport-related is committed.
EECA will provide support and insights A
national public charging emissions into their Energy
16,695 A
t least two rounds of the LETF
to help New Zealand optimise the way infrastructure plan is completed. Transition Accelerator (ETA).
people and goods are transported, and Grants scheme for investment in 14,000 are completed.
infrastructure projects (IRG)
to utilise efficient low-emissions technologies A
t least 30% of transport
30,695
and fuels. This enables New Zealanders co-funding is committed to scalable
to get more out of life using transport Other revenue - INFLUENCE POLICY AND low-emissions technologies and fuels.
SUPPORT INITIATIVES
options that produce fewer emissions. Total operating revenue 30,695
As an example, increased uptake of petrol Provide data and market knowledge
Operating Expenses
hybrid and electric vehicles could reduce to support initiatives that improve
Financial and industry support expenses 23,166
New Zealand’s carbon emissions efficiency, optimise or reduce
by 1.4–5.1 million tonnes by 2035¹. Other operating expenses 4,179 transport-related emissions, and
Let’s change the way we move. Total operating expenses 27,345 influence low-emissions transport
policy options.
Surplus/deficit 3,350
Anticipated work in this area includes
1
The lower limit applies to the Tui scenario where climate change Non-departmental capital leveraging insights to contribute
is competing with other priorities, while the upper limit applies expenses to a suite of initiatives that will improve
to the Kea scenario where it is seen as the most pressing issue Loans to support the investment in 2,500 the efficiency and emissions intensity
in New Zealand. These are results from the TIMES-NZ 2.0 model infrastructure projects (IRG) of the transport sector.
developed by EECA, the Business Energy Council and the
Total capital funding 2,500
Paul Scherrer Institute.
22 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 23The outcomes we seek
ENERGY » New Zealanders live in energy efficient homes that are warm, dry, and healthy
EFFICIENT
HOMES » N
ew Zealand households benefit from an efficient, well-integrated,
7% of New Zealand’s energy-related
emissions comes from households
and resilient renewable energy system
Optimise New Zealand’s (2.2 MTCO2e)
use of renewable energy
at home
Why homes? How much it will cost The actions we will prioritise and how our success will be measured
Our homes are the beating heart of our nation, Budget 2021/22 IMPROVE EXISTING DELIVER STANDARDS EXTEND REGULATORY
where friends and whānau gather to eat, work, $000 HOMES AND GUIDANCE ACTIVITIES
sleep, celebrate and everything else
in between. Our energy consciousness starts Operating revenue Increase the energy efficiency Develop Publicly Available Extend Minimum Energy
here. This is why homes are included as one of existing homes through Specifications (PAS) to accelerate Performance Standards (MEPS)
Energy Efficiency and Conservation
improved insulation and heating. the adoption of new technologies, to include additional products and
of EECA’s five main focus areas, to ensure Crown funding 368 and focus on standards and increase levels for existing products
New Zealanders consume less energy at A
t least 28,000 insulation or guidance for Demand Flexibility/ as necessary; refine and promote
Electricity levy funding 1,560
home to live more vibrant and healthy lives. heating retrofits are installed
Demand Response technologies Mandatory Energy Performance
Gas levy funding 135 in qualifying homes.
We use energy in our homes to power that accelerate market uptake. Labelling (MEPL), working in synergy
2,063 A
t least 95% of sampled retrofits with increased MEPS levels; and
everything from appliances to hot water. A
t least two Publicly Available
Grants scheme for investment in 2,500 comply with the installation continue to enforce regulations.
The dominant energy source is our highly Specifications (PAS) are developed.
infrastructure projects (IRG) standard.
renewable electricity system, but households C
onsumers save at least 0.6 PJs
Grant scheme for Warm Dry Homes 72,480 annually and reduce their
have a significant impact on New Zealand’s
peak electricity use – when electricity Implementation of grant scheme 5,272 energy-related emissions
for Warm Dry Homes as a result of purchasing new
generation tends to be at its least renewable
82,315 energy efficient appliances that
and most expensive to produce (for example, are subject to Minimum Energy
winter evenings). Other revenue -
Performance Standards (MEPS)
Total operating revenue 82,315 and Mandatory Energy Performance
Improving the energy efficiency of
Labelling (MEPL).
New Zealanders’ homes not only reduces
emissions, it plays a vital role in making sure Operating Expenses Anticipated work in this area also
whānau can enjoy warm, dry and healthy Financial and industry support expenses 74,980 includes facilitating a market
surveillance programme of retail stores
homes – without increased energy costs. Other operating expenses 7,335 to assess performance against MEPL
Total operating expenses 82,315 requirements.
Surplus/deficit -
24 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 25The outcomes we seek
GOVERNMENT » Government agencies transition to a low-emissions economy
LEADERSHIP
» New Zealand benefits from low-emissions transition lessons
Lead the transition
to a low-emissions economy
2% of New Zealand’s energy-related
emissions comes from
Government agencies
(0.6 MTCO2e)
» Government agencies collaborate on low-emissions policies and initiatives
Why Government leadership? How much it will cost The actions we will prioritise and how our success will be measured
The transition to a low-emissions economy Budget 2021/22 TAKE DIRECT ACTION LEARN AND SHARE DISPLAY THOUGHT
calls for the Government to have its own $000 AS AN AUTHORITY LEADERSHIP
house in order and to blaze the trail when
it comes to generating more with less. Operating revenue Effectively allocate public sector Capture, anaylse and Focus our efforts where we are
transition funding and provide disseminate knowledge and best-placed to advance the
Government agencies must both demonstrate Energy Efficiency and Conservation
support for cross-government data from New Zealand’s transition, and provide insights
the action required to accelerate the transition Crown funding 1,192 transition initiatives. transition in a timely manner. to policy input.
and influence New Zealanders to do the same, Support for decarbonisation 3,980
in the state sector (SSDF) A
t least 80% of State Sector Anticipated work in this area includes Anticipated work in this area includes
which will be a priority for EECA. This means
8,246
Decarbonisation Fund (SSDF) sharing insights and information contributing to policies and relevant
developing bold policies, modelling clean Carbon neutral government
programme project milestones are met through on New Zealand's transition to initiatives that advance the transition
and clever energy use, and sharing EECA’s monitoring of State sector a low-emissions economy. to a low-emissions economy.
Electricity levy funding 397
low-emissions lessons. organisations.
Gas levy funding 198
For example, Government agencies own T
he remainder of the SSDF
14,013 is committed to decarbonising
over 16,000 vehicles – many of which are
fossil-fuelled and will eventually supply Grants scheme for Investment in 7,511 State sector organisations.
infrastructure projects (IRG)
the second-hand market – and many public A
t least 13 State sector
21,524
hospitals, universities and schools still use organisations complete an Energy
fossil-fuels for heating. We have work to do. Other revenue - Transition Accelerator (ETA).
Total operating revenue 21,524 A
t least 10 State sector
organisations complete a fleet
Operating Expenses optimisation plan.
Financial and industry support expenses 14,052
A
t least $1.5 million in Crown
Other operating expenses 3,089
Loans is given to enable public
Total operating expenses 17,141 sector organisations to save
Surplus/deficit 4,383 energy and reduce their
energy-related emissions.
Non-departmental capital
expenses
Crown Energy Efficiency 2,000
Total capital funding 2,000
26 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 27The outcomes we seek
ENGAGE HEARTS » New Zealanders change their climate-related attitudes and behaviours
AND MINDS
“Clean and clever energy use is about living » Businesses change their attitudes and behaviours to reduce emissions
Create an enabling environment differently, in a way that gives us more.”
for systemic change, where clean
and clever energy is expected
Andrew Caseley, EECA Chief Executive » Government’s low-emissions policies and regulations are bold and credible
and demanded
Why hearts and minds? How much it will cost The actions we will prioritise and how our success will be measured
Every day, we make decisions about how Budget 2021/22 INSPIRE LONG-TERM BEHAVIOURAL SHIFTS COLLABORATE ACROSS GOVERNMENT
we use energy. It’s in everything we do, use, $000
make or buy. That’s why EECA will focus
on engaging hearts and minds to encourage Operating revenue Inspire long-term attitude and behaviour changes, Focus our efforts where we are best-placed to lead
New Zealanders to get more out of life, while and gain social licence to drive support for the intervention and seek to leverage others’
Energy Efficiency and Conservation
systemic change. resources to deliver shared outcomes.
saving money and reducing carbon emissions Crown funding 5,650
- to live more with less energy. A
t least 16% of individuals and 16% of businesses Anticipated work in this area includes seeking to be a leading
5,650
are aware of the Gen Less brand. agency for climate-related behaviour change and leveraging
Efficient use of renewable energy can deliver Other revenue - the Gen less platform for clear, effective messaging.
some serious benefits, but it requires A
t least 37% of businesses are actively seeking
Total operating revenue 5,650 to reduce the impact of their energy use and
collective action. If every New Zealander
makes even small improvements to how they transport choices.
Operating Expenses
use energy, if businesses invest in energy Financial and industry support - A
t least 32% of individuals understand that
efficiency and commit to decarbonising, expenses transport is the biggest contributor to New Zealand’s
and if effective policies are adopted, energy-related emissions.
Other operating expenses 5,650
we’ll see a significant decrease in our A
t least 46% of individuals say they are likely
Total operating expenses 5,650
energy-related emissions. to consider a low-emissions vehicle as their
Surplus/deficit -
next car purchase.
This isn’t just achievable – it’s necessary.
Anticipated work in this area also includes promoting
low-emissions transport modes and encouraging
New Zealanders to incorporate them into their lifestyles.
28 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 29Financial Statements
Financial
Statement of forecast comprehensive revenue and expense
information
Forecast Budget
2020/21 2021/22
$000 $000
Revenue
Funding from the Crown 165,519 173,133
Interest revenue 220 125
Other revenue 295 251
Total revenue 166,034 173,509
Expenditure
Personnel 11,281 13,228
Financial and industry support 140,726 136,806
Other operating expenses 14,266 15,771
Depreciation and amortisation expense 323 367
Total expenditure 166,596 166,172
Net surplus/(deficit) (562) 7,337
Other comprehensive revenue and expense - -
Total comprehensive revenue and expense (562) 7,337
The accompanying notes form part of these financial statements
Woolworks Timaru – hot water used for 3 wash cycles in the wool scouring process
30 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 31Statement of forecast financial position Statement of forecast changes in equity
Forecast Budget Forecast Budget
2020/21 2021/22 2020/21 2021/22
$000 $000 $000 $000
Assets Opening equity 22,442 21,880
Current assets Total comprehensive revenue and expense (562) 7,337
Cash and cash equivalents 4,923 5,164 Closing equity 21,880 29,217
Receivables 300 300
Investments 27,000 32,000 Analysis of closing equity
Prepayments 270 270 Contributed capital 545 545
Crown loan debtors 1,418 1,418 Accumulated surplus/(deficit) - financial & industry support commitments 13,336 23,405
Total current assets 33,911 39,152 Accumulated surplus/(deficit) - other 7,999 5,267
Non-current assets 21,880 29,217
Crown loan debtors 2,379 2,379
Property, plant and equipment 181 244
The accompanying notes form part of these financial statements
Intangibles 487 207
Total non-current assets 3,047 2,830
Total assets 36,958 41,982
Liabilities
Current liabilities
Payables 9,900 7,500
Employee entitlements 747 926
Crown loan creditors 1,418 1,418
Lease incentives 57 57
Provisions 195 140
Total current liabilities 12,317 10,041
Non-current liabilities
Crown loan creditors 2,379 2,379
Employee entitlements 100 120
Lease incentives 282 225
Total non-current liabilities 2,761 2,724
Total liabilities 15,078 12,765
Net assets 21,880 29,217
Equity
Contributed capital 545 545
Accumulated surplus/(deficit) 21,335 28,672
Total equity 21,880 29,217
The accompanying notes form part of these financial statements
32 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 33Statement of forecast cash flows Statement of Accounting Policies
Forecast Budget
2020/21 2021/22
$000 $000
Reporting entity
Cash flows from operating activities
Receipts from the Crown 172,254 173,133 The Energy Efficiency and Conservation Authority (EECA) is a Crown entity as defined in the
Receipts from other revenue 295 251 Crown Entities Act 2004 and is domiciled and operates in New Zealand. The relevant legislation
Interest received 220 125 governing EECA’s operations includes the Crown Entities Act 2004 and the Energy Efficiency and
Conservation Act 2000. EECA’s ultimate parent is the New Zealand Crown.
Payments to employees (11,345) (13,029)
EECA’s primary objective is to provide services to the New Zealand public. EECA implements
Payments to suppliers (14,136) (15,883)
New Zealand Government strategies for energy efficiency, conservation and renewable
Financial and industry support payments (141,357) (139,206) energy in both the private and public sectors. EECA does not operate to make a financial
Net cash flows from operating activities 5,931 5,391 return.
EECA has designated itself as a Public Benefit Entity (PBE) for financial reporting purposes.
Cash flows from investing activities These prospective financial statements allow the Minister of Energy and Resources to consider
Receipts from sale of investments 83,000 88,500 our funding requirements and planned performance for 2021/22. Use of this information for other
purposes may not be appropriate. Readers are cautioned that actual results are likely to vary
Receipts from sale of property, plant and equipment - -
from the information presented here and that the variations may be material.
Receipts from the Crown - loan funding 1,000 2,000
The prospective financial statements were authorised for issue by the Board on 15 June 2021.
Loan repayments received 1,324 2,000
Purchase of property, plant and equipment (97) (150)
Purchase of intangible assets (332) -
Purchase of investments (88,913) (93,500) Basis of preparation
Payments to the Crown - loan repayments (1,000) (2,000)
Loans provided (1,324) (2,000) The prospective financial statements have been prepared on a going concern basis, and the
Net cash flows from investing activities (6,342) (5,150) accounting policies have been applied consistently throughout the periods covered.
Net increase/(decrease) in cash and cash equivalents (411) 241
Statement of compliance
Cash and cash equivalents at the beginning of the year 5,334 4,923
The prospective financial statements have been prepared in accordance with the
Cash and cash equivalents at the end of the year 4,923 5,164
requirements of the Crown Entities Act 2004, which includes the requirement to comply with
Generally Accepted Accounting Practice in New Zealand (NZ GAAP).
The accompanying notes form part of these financial statements.
The prospective financial statements have been prepared in accordance with Tier 1 PBE
accounting standards and comply with PBE FRS42 Prospective Financial Statements.
The prospective financial statements for the year ended 30 June 2022 will be used in the
Annual Report as the budgeted figures.
Presentation currency and rounding
The financial statements are presented in New Zealand dollars, and all values are rounded
to the nearest thousand dollars ($000).
Significant assumptions
In preparing these prospective financial statements, EECA has made judgements, estimates
and assumptions concerning the future. These judgements, estimates and assumptions may
differ from actual results. None of the judgements, estimates and assumptions made are
regarded as being significant.
34 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 35Significant accounting policies Crown loans
Loans are initially recorded at fair value, being the notional value of the loans at date of
acquisition or origination less the discount necessary to take account of the time value
Revenue of money calculated at an interest rate applicable to the creditworthiness of the debtor.
Thereafter, interest is recognised in accordance with the effective interest rate method such
FUNDING FROM THE CROWN that the discount will be amortised at the interest rate applicable to the date of acquisition or
EECA is primarily funded by the Crown. This funding is restricted in its use for the purpose origination.
of EECA meeting the objectives specified in its founding legislation and the scope of the
relevant appropriations of the funder.
Property, plant and equipment
EECA considers that there are no conditions attached to the funding, and it is recognised
Property, plant and equipment consists of the following asset classes: leasehold improvements,
as revenue at the point of entitlement. Revenue from the Crown is recognised as revenue
computer equipment, furniture and fittings, and office equipment.
when earned and is reported in the financial period to which it relates.
All asset classes are measured at cost, less accumulated depreciation and impairment losses.
The fair value of revenue from the Crown has been determined to be equivalent to the
amounts due in the funding arrangements.
DEPRECIATION
Depreciation is provided on a straight-line basis on all property, plant and equipment at rates
PROVISION OF SERVICES
that will write off the cost of the assets to their estimated residual values over their useful lives.
Services provided to third parties on commercial terms are exchange transactions.
Revenue from these services is recognised in proportion to the stage of completion The useful lives and associated depreciation rates of major classes of property, plant and
at balance date. equipment have been estimated as follows:
INTEREST REVENUE Assets Useful life Depreciation rate
Interest revenue is recognised using the effective interest method.
Computer equipment 3 years 33.30%
Financial and industry support Office equipment 2.5 to 6 years 40% to 16.67%
EECA provides financial and industry support to enable energy efficiency and conservation Furniture and fittings 6 years 16.67%
initiatives, including training and building industry capability, to be undertaken. EECA
Leasehold improvements 2 to 8 years 50% to 12.50%
becomes obliged to make a payment against contracts when prescribed activities are
undertaken. Financial and industry support is accrued on the basis of the amount
of work completed. The value of work yet to be completed under the contract Leasehold improvements are depreciated over the unexpired period of the lease or the
is reported as commitments. estimated remaining useful lives of the improvements, whichever is the shorter.
Operating leases Intangibles
An operating lease is a lease that does not transfer substantially all the risks and rewards Intangible assets consist of software applications that have a finite useful life and are recorded
incidental to ownership of an asset to the lessee. Lease payments under an operating lease at cost less accumulated amortisation and impairment.
are recognised as an expense on a straight-line basis over the lease term. Lease incentives
Costs associated with the development and maintenance of EECA’s website are recognised as
received are recognised evenly over the term of the lease as a reduction in rental expense.
an expense when incurred.
CASH AND CASH EQUIVALENTS
AMORTISATION
Cash and cash equivalents includes cash on hand, deposits held on call with banks, and
The carrying value of an intangible asset with a finite life is amortised on a straight-line basis
other short-term highly liquid investments with original maturities of three months or less.
over its useful life. Amortisation begins when the asset is available for use and ceases at the
date that the asset is derecognised. The useful lives and associated amortisation rates have
Receivables been estimated as follows:
Short-term receivables are recorded at their face value, less any provision for impairment.
Assets Useful life Amortisation rate
Investments Acquired computer software 3 to 5 years 33.30% to 20%
Bank term deposits are initially measured at the amount invested. Interest is subsequently
accrued and added to the investment balance.
36 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 37Impairment of property, plant and equipment and intangible assets Provisions
EECA does not hold any cash-generating assets. Assets are considered cash-generating A provision is recognised for future expenditure of uncertain amount or timing when
where their primary objective is to generate a commercial return. there is a present obligation (either legal or constructive) as a result of a past event,
it is probable that an outflow of future economic benefits will be required to settle
NON-CASH-GENERATING ASSETS the obligation, and a reliable estimate can be made of the amount of the obligation.
The carrying amounts of property, plant and equipment are reviewed at least annually
to determine if there is any indication of impairment. Where an asset’s recoverable amount Equity
is less than its carrying amount, it will be reported at its recoverable amount and
Equity is measured as the difference between total assets and total liabilities.
an impairment loss will be recognised. Losses resulting from impairment are reported
Equity is disaggregated and classified into the following components:
in the Statement of Comprehensive Revenue and Expense.
» contributed capital
Payables » accumulated surplus/(deficit).
Short-term payables are recorded at their face value. A significant proportion of the accumulated surplus is the result of revenue received
that has been committed in the form of financial and industry support expenditure
Employee entitlements to be incurred in future years.
SHORT-TERM EMPLOYEE ENTITLEMENTS Goods and services tax (GST)
Employee benefits that are due to be settled within 12 months after the end of the period All items in the financial statements are exclusive of GST, with the exception of trade
in which the employee renders the related service are measured based on accrued debtors and trade creditors, which are stated with GST included. Where GST is not
entitlements at current rates of pay. recoverable as an input tax, then it is recognised as part of the related asset or expense.
These include salaries accrued up to balance date, annual leave earned but not yet taken The net amount of GST recoverable from, or payable to, the Inland Revenue Department
at balance date and sick leave. (IRD) is included as part of receivables or payables in the Statement of Financial Position.
A liability and an expense are recognised for bonuses where there is a contractual The net GST paid to, or received from, the IRD, including the GST relating to investing
obligation or where there is a past practice that has created a constructive obligation and financing activities, is classified as a net operating cash flow in the Statement
and a reliable estimate of the obligation can be made. of Cash Flows.
LONG-TERM EMPLOYEE ENTITLEMENTS
Commitments and contingencies are disclosed exclusive of GST.
Employee benefits that are due to be settled beyond 12 months after the end of the
period in which the employee renders the related service, such as long service leave and Income tax
retirement leave, are calculated on an actuarial basis. The calculations are based on: EECA is a public authority and consequently is exempt from the payment of income tax.
» l ikely future entitlements accruing to staff based on years of service, years to Accordingly, no provision has been made for income tax.
entitlement, the likelihood that staff will reach the point of entitlement, and contractual
entitlement information; and Cost allocation
» the present value of the estimated future cash flows. EECA has determined the cost of outputs using the cost allocation system outlined below.
PRESENTATION OF EMPLOYEE ENTITLEMENTS Direct costs are those costs directly attributable to an output. Indirect costs are those
costs that cannot be identified in an economically feasible manner with a specific output.
Sick leave, annual leave and vested long service leave are classified as a current liability.
Non-vested long service leave and retirement gratuities expected to be settled within Direct costs are charged directly to outputs. Indirect costs are charged to outputs based
12 months of balance date are classified as a current liability. All other employee on cost drivers and related activity or usage information.
entitlements are classified as a non-current liability. There have been no changes to the cost allocation methodology since the date of the last
audited financial statements.
38 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 39Glossary
Appropriation – a sum of money allocated by the Government Mandatory Energy Performance Labelling (MEPL) – EECA Publicly Available Specifications (PAS) – voluntary State sector – within the state sector lies the state services,
for a particular use. carries out regulation of energy efficiency labelling for products documents developed by Standards New Zealand that provide and within this lies the core public service.
and appliances so consumers can compare the energy use best practice guidance and a technical specification for energy
Carbon equivalent (CO2e) – a measurement unit used Sustainable energy – energy that serves the needs of the
of products and appliances they buy. performance for different technologies.
to indicate the global warming potential of greenhouse gases, present without compromising the ability of future generations
using carbon dioxide (CO2) as a reference gas. Mokopuna – grandchild or descendant. Process heat – energy used for commercial and industrial to meet their needs. It includes renewable energy and
processes, manufacturing and heating. For example, meat and energy efficiency.
Decarbonisation – reducing the amount of carbon emitted Minimum Energy Performance Standards (MEPS)
dairy processors use steam from boilers to sanitise equipment
in the economy, with the ultimate aim of eliminating it in our – EECA carries out regulation of energy efficiency standards Transition – abbreviation for the transition to a low-emissions
and process raw products, such as turning milk into powder.
modern lives. for products and appliances to ensure the worst-performing economy.
It generally involves the use of coal, gas, wood or electricity.
ones are kept out of the New Zealand market.
Emissions – greenhouse gas emissions. Warmer Kiwi Homes – a Government programme run by
Public sector – the public sector comprises four sectors:
Oranga – wellbeing. EECA that offers insulation and heating grants to low-income
Emissions intensity – the volume of emissions per unit public service, state services, state sector and the public
homeowners.
of Gross Domestic Product (GDP). Pakeke – adult or older person. sector. Therefore, it includes both central and local
government organisations. Vote Business, Science and Innovation – the Government’s
Energy – the capacity of a physical system to perform work. Petajoule (PJ) – the unit most often used to measure energy
budget is broken up into buckets of money called Votes.
Energy can be derived from physical or chemical resources, production and use on a national scale in New Zealand. Energy Renewable energy – energy produced from hydro, geothermal,
Business, Science and Innovation is one of those buckets.
such as the sun or fossil fuels. We need energy for everything savings are valued using the marginal cost of electricity supply. biomass, wind, solar and marine sources.
from manufacturing and electricity generation right through
to powering our vehicles and homes.
Energy productivity – the value we get from the energy Image: Gen Less partnered with Haydon Padden and
we consume, defined as GDP per unit of energy. team on the world’s first electric rally car.
Energy Transition Accelerator (ETA) – a Government
programme run by EECA that is available to large
energy-using businesses and public sector organisations
committed to reducing carbon emissions. An expert helps
these organisations to develop a long-term emission
reduction pathway by identifying technically and
economically viable decisions and investments.
Fossil fuels – includes coal, natural gas, LPG, crude oil and
fuels derived from crude oil (including petrol and diesel).
Government Investment in Decarbonising Industry (GIDI)
Fund – a Government fund administered by EECA that aims
to accelerate the decarbonisation of industrial process heat
by assisting private sector businesses with the upfront capital
costs of switching from fossil fuels to renewables to accelerate
their decarbonisation goals.
Greenhouse gases – these include CO2, methane and nitrous
oxide. In the energy sector, the burning of fossil fuels (oil,
coal, gas) for heat, transport or electricity generation creates
greenhouse gas emissions. Greenhouse gas emissions
contribute to climate change.
Kaitiakitanga – the concept of guardianship. In the context of
climate change, this means the intergenerational responsibility
to protect and care for the natural environment.
Kaupapa – a strategy, plan or proposal. For EECA, this is the
work we will do to accelerate the transition to a low-emissions
economy.
Low-emissions economy – an economy that is based on
low-carbon energy sources and therefore produces minimal
greenhouse gas (GHG) emissions into the atmosphere,
specifically carbon dioxide.
Low-emissions vehicle (LEV) – LEVs use our renewable
electricity advantage to significantly reduce greenhouse
gas emissions. LEVs include battery electric vehicles,
plug-in hybrid vehicles and hydrogen fuel cell vehicles
(as long as the hydrogen is produced using New Zealand’s
renewable electricity advantage).
40 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 2021/22 STATEMENT OF PERFORMANCE EXPECTATIONS 41You can also read
