"The world faces two big challenges with energy.
One: We have to make sure we have enough of it so that all people have the ability to realise their aspirations - as individuals and as nations.
Two: We have to manage the consequences of using it – especially global warming and climate change.
New Zealand isn’t immune from those challenges. They’re our challenges too.
And they’re big challenges.
How do we tackle them?
How does New Zealand play its part?
Are they too big? Should we even bother to try?
At Meridian, we choose to see these twin challenges as opportunities, rather than threats.
They’re opportunities, because we believe that humans have an almost unlimited ability to imagine new ways of doing things.
But imagination is not enough. The idea must be followed by action, or else there is no change, no progress.
Today I would like to tell you about four things that Meridian has imagined, and which we are now putting into action.
Each of these ideas flows naturally from our commitment in 2004 to developing only renewable electricity generation. We made that commitment, not because it was going to be easy, but because it was the right thing to do for New Zealand. The right thing for security of supply, the right thing for keeping prices as low as possible, and the right thing for the environment.
These ideas also flow naturally from our achievement in February this year of carbon neutral certification of our electricity. And we are still the only company to provide certified carbon neutral electricity in New Zealand; possibly also the world.
They flow naturally from my commitment earlier this year that Meridian will transform the customer experience of electricity over the next three years. And that is a commitment that flowed from our decision to start the first mass rollout of smart meters in New Zealand, to our customers in Central Hawkes Bay, Christchurch and parts of Canterbury.
The first thing that I am proud to announce today is that Meridian will proceed with construction of Project West Wind.
From the beginning we’ve said West Wind will be the world’s best wind farm. Its productivity will be the envy of the world’s wind industry.
I’m particularly proud as a Wellingtonian to know that we are harnessing the natural resource for which we are famous around the world to power our homes and businesses.
West Wind won’t be quite as big as we planned initially. Originally we proposed and were given consent for 70 turbines of up to 3 megawatts each. The Environment Court reduced that by four to 66.
The turbines we will choose for the site are somewhat smaller than 3 megawatts, and four of the more exposed turbine sites are not suitable for these particular machines, so the farm will comprise 62 turbines with a total capacity of a bit more than 140 megawatts.
The economics of this site have been particularly challenging, and the selection of these turbines is key to making it commercially viable. We have also been fortunate that the very recent exchange rate spike has worked in our favour and just at the right time, even if they have not been great for exporters.
West Wind will be a huge asset for Wellington, and I know the vast majority of Wellingtonians will welcome this announcement.
We plan to formally turn the first sod on Project West Wind in late September – although some preparatory work, such as roading, will be getting under way very shortly.
While West Wind is big and its productivity will be unrivalled, we have even bigger wind plans going through the resource consent process right now. Most of you will know about Project Hayes on the Lammermoors, in Central Otago.
That project will make a huge contribution – not only to reducing our greenhouse gas emissions, but also to ensuring security of supply in the South Island. It’s a fantastic match-off with our existing hydro assets in the South Island. When the wind blows we can store water in the lakes. When the wind doesn’t blow, we tap into the stored energy of the water.
Simply brilliant. We are proving once again that New Zealand truly has some of the world’s best resources and is God’s Own country.
On Monday this week, we also began hearings on our application for water-only consents for a tunnel-based hydro scheme on the lower Waitaki river. If we are successful in gaining these consents, we will then move to full engineering feasibility studies and land resource consent applications.
My second announcement today concerns the establishment of a new subsidiary company to lead the charge for New Zealand homes to become, not only healthier and more comfortable, but at the same time much more energy efficient.
It’s called “Righthouse”. It will provide a service for homeowners or homebuilders planning a new house, or new housing projects, who want to create high-performing homes that are cheaper to run. It will integrate a full package of technologies with design and installation services to create an exceptional standard of health and comfort. We have already fitted some pilot demonstrator homes.
The really gratifying lesson from the early pilots is that the relatively modest extra cost of designing and building such homes is significantly outpaced by their increased market value.
Righthouse will be formally launching in Auckland later this year, and intends to extend its service throughout New Zealand over the next three years.
The launch of our Righthouse subsidiary comes at an interesting and appropriate time for Meridian, as we’re about to move into a new home here in Wellington – just outside this window actually. And it’s a very interesting home that, just like Righthouse, proves that investment in thoughtful design and resource efficient appliances is good for the environment, good for people, and good for accountants.
Maybe that came out a bit wrong.
What I mean is that Meridian’s new head office building, which is having the finishing touches put to it right now, is going to provide a highly productive working environment, while designed to use 70 percent less water and 60 percent less electricity than other commercial buildings. The electricity consumption will be less than one third that of our current converted warehouse in Allen St.
Total cost of occupancy is no more than other comparable A-grade commercial buildings, while the use of natural light, fresh air and smart technology will mean that our staff are happier, healthier and more productive.
This outcome could only be achieved by very close cooperation between Meridian as head tenants, Wellington Waterfront as the ground lessor, Dominion Funds as the owner, and Studio of Pacific Architecture and Fletcher Construction; together with BECA’s, Davis Langdon, Dunning Thornton, and Warren and Mahoney.
This is a development that will set new standards for New Zealand, and which is already attracting national and international attention.
There is a very long list of innovations in this building, but let me pick out a few.
A double-skinned façade to manage the internal environment
Solar hot water heating for bathrooms and showers.
Photovoltaic solar panels to generate electricity, albeit quite small amounts
Collection of rain water for flushing toilets
Chilled beams and heat pumps for cooling and heating
And a full-on computerised building management system that automatically adjusts windows, lights and air conditioning for the weather conditions outside.
Sustainable construction practices, with Fletcher’s reducing site waste to landfill by an amazing 60 percent. Sustainable thinking also applied to material selection, such as using cement with 65 percent recycled content to substantially reduce embodied energy.
I want to acknowledge our partners on this project. We couldn’t have done it without you – and I suspect you wouldn’t have done it without us.
I am pleased to announce today that Meridian will take occupation of the new building on October 15, and it will be officially opened later that month.
One of the thing that is missing from the new building – that is deliberately missing – is car parks. There are none. One of the criteria for the location of a new office was that it had to have excellent public transport links. And while there are no car parks, there are plenty of bike racks.
The transport sector is, of course, one of the biggest users of energy in New Zealand. And one of the biggest emitters of greenhouse gases.
And that brings me to my final, and I think most important, announcement today.
Early next year Meridian will commence a small scale demonstration of electric cars.
We have been closely watching overseas developments in electric vehicles, and I am convinced that the technology is about to reach a tipping point.
Advances in motor and control technology, and especially battery technology, mean that all -electric cars will come to market in the not too distant future.
In the last few years we have seen the success of hybrid cars, and plug-in hybrids are now coming to market. All-electric cars are not far behind.
Meridian has three goals in conducting this trial:
First, to find out how electric cars perform in New Zealand conditions
Secondly, to find out what New Zealanders think about electric cars
And thirdly, to convince the world’s major automakers that New Zealand is the best place to introduce new electric vehicles.
Why do I think New Zealand is the best place? A couple of reasons.
We’re a pretty small market, so it’s easy to test new offerings.
We’re a country of early adopters – given half a chance.
But most importantly, because a huge chunk of our electricity is produced from renewable sources.
And the absolute prize in making the move to electric vehicles comes when you recharge them with renewable electricity. Renewable, zero-emission electricity. Meridian will be able to demonstrate renewable, zero-emission, certified carbon neutral mobility.
There is no point in somebody feeling good about driving round town in an electric vehicle if the electricity they’re using has come from a coal-burning plant. All they’ve done is shifted the emissions from their tail pipe to a smoke stack over somebody else’s town.
But that prize, of New Zealanders driving electric vehicles charged up with the plentiful wind and water resources of our own country – that prize is worth pursuing.
Think about it.
Better air quality for our cities and towns.
A better balance of trade as we reduce our dependence on imported hydrocarbons.
Lower transport costs, because you’ll need less energy, and it’s at a lower price
Reduced greenhouse gas emissions, with a big pay off for our Kyoto obligations.
No longer exposed to the volatile prices of international oil markets
That’s a prize worth pursuing. That’s a dream that we want to turn into reality.
Let me be clear. Meridian will not be getting into selling cars, now or in the future. This trial will be about testing New Zealanders’ interest in these vehicles, so that we can convince the auto majors to make us a priority market.
A demonstration market. The world leader in reducing the environmental impact of personal transport by using renewable, certified carbon neutral energy.
I am convinced that it is a question of when, not if, electric vehicles have a big impact on New Zealand’s energy profile. Our demonstration is designed to make that moment come sooner rather than later.
So there you have it – four dreams becoming reality.
West Wind starting construction in September.
Righthouse launching in September.
Meridian’s new head office setting new standards for commercial buildings from October.
And a trial of electric vehicles starting next year.
I’d like to finish by paying tribute to the Meridian staff who are putting their heart and soul into making these ideas a reality.
It is a real privilege to lead a team that believes there is nothing New Zealanders cannot do if we want it enough. Who believe that our future is limited only by our imagination. And who have the drive and the skill to make dreams come true.
Thank you for your time today. I would be pleased to take any questions."