Moving away from fossil fuels, electricity costs could rise

Tāmaki Makaurau - As New Zealand moves away from fossil fuels to climate-friendly renewable electrical energy, demand for electricity is going to rise.

For households purchasing an electric vehicle (EV), this may become the single biggest electrical appliance.

So as EV numbers grow, people will need to think about when and how we use electricity. If we all continue to plug in without considering the overall load on the grid, the current supply may not easily be able to keep up with demand.

The good news is, Aotearoa can reduce the need for expensive new electricity generation infrastructure and keep power bills down by being smarter about how and when people use electricity.

A smart home isn’t the building itself, but a clever system that ensures home electricity use is as efficient as possible.

In a fully set up smart home, electrical appliances communicate with a flexibility supplier that manages the supply of electricity to the home making sure people’s needs are met while also managing the overall demand on the electricity supply network.

The point is to keep costs down and reduce generation of electricity that isn’t really needed.

For a smart home set-up to work, appliances need to either have smart technology built into them or be connected via a smart plug or thermostat.

A fully functional smart home can also include a home energy management system that links all the smart appliances in the home together to maximise efficiency overall.

Smart appliances optimise for efficiency, reducing unnecessary power use. For example, a smart thermostat fitted to the hot water cylinder maps usage patterns and turns off or down when not needed.

A home energy system enables centralised control within the home and allows smart appliances to work together to maximise overall household efficiency.

A flexible demand service that is connected to the electricity supply network communicates with the smart appliances or system.

This service optimises household electricity supply based on user needs and overall network demand, keeping household costs down and relieving pressure on the grid.

For a true smart home, people to be connected to a flexibility supplier. In New Zealand this service doesn’t exist yet, but Kiwis can expect it to come within the next year or so.

In the meantime, there are things people can do to be prepared, like keeping smartness in mind when buying new appliances, getting an electrician to fit the hot water cylinder with a smart thermostat, buying smart plugs for appliances and installing a home energy management system.