Renewable energy technology: the next major Kiwi export?
New Zealand companies helping to drive innovation in low-impact energy initiatives.
In a nation which already punches well above its weight in the innovation stakes, renewable energy presents an enticing prospect as, around the world, people look for better ways to power their lives. In 2015 alone, some US$12-billion was invested in renewable technology – and that’s why Callaghan Innovation is getting behind this industry, making available resources to boost the sector and stimulate what it believes could be a major new export income earner.
That’s according to Chris Thomson, energy sector manager at Callaghan Innovation, the government agency which helps businesses succeed through technology. “Renewables in New Zealand is interesting because we have always had a high percentage of our electricity being ‘green’. That means, as a nation, we are an example for other countries around the world which want to increase their use of lower-impact energy sources,” he points out.
However, while renewable electricity generation holds a significant place in the energy mix, there is a lot more to it, confirms Thomson. “We’re looking to work with companies and individuals innovating across the board in the renewables space. That ranges from control and instrumentation – working with the frequency and voltage issues which arise from renewable sources – to those who have innovated around data and information sharing to create new business models.”
Callaghan is also engaging with companies active in the oil and gas space, and those focused on improving efficiency and performance from the industrial use of coal and heavy fuels.
New Zealand, says Thomson, has some unique features which combine to accelerate innovation, not the least of which is an engaged and approachable regulatory environment. There are also the advantages of accessibility to industry, support networks and even ‘field’ environments.
“Our country really is an extraordinarily enabling place to innovate and take products to market. There are few places where you can, owing to the size of the market, engage so readily with regulators, the complete supply chain, consumers and work sites to get it done and get a product offshore.
“We’ve seen how deregulation of the electricity industry has spurred innovation with the emergence of retailers with new business models. The regulator has actively worked with these companies to help them shape up their value propositions, rather than standing in the way.”
The results of this approachable, collaborative environment are tangible: he points to online electricity retailer Powershop, which has ‘exported’ its business model to Australia and the UK; he also said regulators in other industries, such as aviation and transport, haven’t stood in the way, but have facilitated the introduction of innovations such as drones and ride sharing.
And in terms of accessibility to ‘the coalface’, Thomson notes that Auckland headquartered Petromac has rapidly developed a well-inspection solution. “Part of that success is owing to its ability to get right into the oil industry and literally down the wells without any fuss.”
Petromac was recently named a winner in the Deloitte Energy Excellence Awards’ Energy Technology of the Year category, and has received Callaghan support in the development of its products.
He adds that with the emergence of more engaged consumers, through apps and domestic controls, a new frontier has opened up in the ability to create valuable products and solutions which could have appeal around the world.
“Internationally, there is growing demand for renewable solutions which span the full energy sector. There are countries and industries which want to improve their efficiency and environmental performance, while lowering costs. And there are New Zealanders and their companies who have expertise they can share with these markets – and Callaghan wants to help them make it on that global stage,” he concludes.