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The Big Payback

Our commercial buildings are notorious energy-wasters. But as Sky City has proven, bringing energy under control delivers stellar results. Energy efficiency at a building as iconic as Sky City throws up unique challenges. 

When management turned off the tower’s external lights to do their bit during the midwinter electricity crisis of 2008 they found themselves fielding outraged phone calls from Aucklanders demanding they be turned back on.

“It was public demand – people felt we were being stingy,” Sky City Energy and Environment Coordinator Jonathan Woodbridge Buys says. Not to be deterred, the technology eventually evolved enough for them to install the latest in efficient LED lighting on a remote control system.

The twinkling lights on the skyline are now beacons of efficiency.

When Woodbridge Buys started the role in August 2007 he spent the first few weeks studying the tower and hotel’s $6.5 million energy and utilities budget – concentrating on the areas of biggest spend, looking at where the fastest returns could come from, and investigating new lighting, heating, cooling, and ventilation technology.

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Within a couple of weeks he had saved the company more than $20,000.

He says energy conservation at Sky City works to an “it has to do good not just feel good” mantra. They aren’t going to partake in energy saving initiatives unless they pay themselves off and produce a return on investment. Even the gaming machine manufacturers are doing their bit. Their newest offerings emit less light and heat by using liquid crystal displays, flat tubes and panels, and touch screens instead of buttons.

“If you put your hand on top of an old machine it used to be hot and all that heat had to be got rid of in the gaming space.”

The Sky Tower is a somewhat unique example, but what about the more bog-standard office building? There are around 75,000 commercial buildings in New Zealand, which collectively account for 9 per cent of our national energy use – about the amount of electricity used by 1.2 million homes. Analysis by the Energy Efficiency and Conservation Authority (EECA) shows that most buildings could save 10–15 per cent of this energy, and much of it with paybacks of less than a year.

“It isn’t rocket science. We’ve worked with many businesses which are stronger and more profitable as a result of good energy management,” EECA Business Account Manager Dan Coffey says.

Companies like Sky City that invest in energy efficiency find not only that it’s good for the bottom line, but it makes a happier workplace. In Wellington, the Reserve Bank has just undergone an energy transformation, cutting energy use in its offices by 22 per cent with a programme of ‘continuous commissioning’. This means they constantly monitor and adjust the heating, ventilation and air conditioning systems to optimise their performance.

The project had a payback of 12 months and they say the response from staff has been positive. Research confirms buildings tuned for energy efficiency record improved staff satisfaction. Coffey explains it is because the systems are adjusted to ensure they aren’t fighting each other by overheating or overcooling.

 CEO of the New Zealand Green Building Council Jane Henley says an office is more than just four walls. “Buildings are a powerful business service, which shape the culture and wellbeing of the people who spend day after day in them. Many companies are starting to understand the opportunity to reduce operating costs, and importantly to choose space that has high levels of natural light and zoned temperature control,” she says.

Natural light, fresh air and access to outdoor views, as well as control over their own workspace temperature and lighting, can directly affect staff’s productivity.

 “We’re seeing research overseas that shows companies which invest in these features achieve significant productivity gains and cost savings,” Henley says.

She cites the example of Australia’s first six star Green Star rated office building, where productivity has risen by 10.9 per cent since staff moved in, with an estimated annual saving of $2 million. There is a growing movement towards energy-efficient commercial architecture and design, which EECA says will eventually have a flow-on effect on energy use.

The International Energy Agency’s Dr Nigel Jollands says the high global interest in this field makes energy efficient buildings “the new black”, with lots of R&D now focused on energy efficient buildings.  New Zealand has been slower off the mark in this regard, but there are some stellar local examples. The Selwyn District Council in Canterbury commissioned a new headquarters that made the most of passive solar gains. They ensured an energy audit was carried out on the design before the concrete was even poured.

Realistically, most Kiwi businesses aren’t in a position to commission a brand new eco- building, but as companies like Sky City prove, there’s much positive potential in existing buildings. Getting staff buy-in is crucial for an efficiency programme, Coffey says. Half of the energy used in offices is under their direct control – such as lights and office equipment.

“A simple after hours walk-through can deliver returns. There’s often a surprising amount of plant and equipment running unnecessarily.”

Coffey says he’s seeing energy awareness shift from being confined to engineers, to a general management discipline.

“[It] makes sense because why would any well-run business pour money down the drain?”

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