Energy security has long been defined by how much we can generate. The next phase of progress depends on how well we use every megawatt we already have. Lines companies, large energy users, communities, and the companies that provide and install smart chargers, batteries and control systems all have a role in lowering peaks, sharing capacity, and getting more from the assets in place.
Right now, demand is growing and the grid is under pressure. Recent market reports recorded the highest weekly demand of about 5,449 megawatts in late October, even outside winter and exceeding weekly demand levels observed over the past three years. New Zealand needs power, and using the electricity we already have more intelligently is crucial. Shift more use to off-peak times, add storage where it pays, and give the network better visibility of on-site loads. Done well, that means fewer outages, shorter connection times, and lower peak bills for homes and businesses. Smart charging, batteries, microgrids (small local energy systems that can operate with or without the national grid) and better visibility of load can reduce costs and free up capacity.
Government and regulators can set clear rules and prices that reward using power at off-peak times and make it easier for homes and businesses to participate. Network operators can add more real-time monitoring and smart control so they spot issues sooner and respond faster. Businesses can act now by cutting energy waste, tracking use, and adding on-site solar and batteries. Solar generation, while growing across both utility-scale and residential solar, still only makes up about two percent of total electricity generation in New Zealand, highlighting a big opportunity to contribute to a more flexible and resilient energy system.
Modelling show what works. On the ground, Ngā Hau e Whā National Marae in Christchurch already meets about 64 percent of its needs with solar and batteries, saving around $1,600 a month, and a wind plus battery project on Rēkohu Chatham Islands is expected to more than halve household power bills. Widespread smart EV charging has the potential to cut winter evening peak demand by about 1.9 gigawatts by 2035, roughly an 18 percent reduction that defers costly upgrades.
There is more capacity to unlock in the grid itself. Globally, transmission and distribution losses average around 8 percent, with typical ranges from about 4 to 15 percent. In New Zealand, MBIE data implies losses of about 7 percent in 2023, so every point we shave is capacity we do not need to build. Smart meters, sensors, and software can spot waste, move load away from peaks and reroute power around faults so more of what we generate reaches homes and businesses.
Tool integration is where savings accelerate. In Australia, utilities company UCS Group and Schneider Electric have shown that an intelligent microgrid can use 100 percent of on-site solar and have delivered more than 60 percent monthly bill savings at UCS’s own site. Applied in Aotearoa, similar controls paired with batteries can shift load out of the evening peak, cut demand charges, and relieve pressure on ageing assets far faster and at a fraction of the cost of new build.
On-site and community energy solutions are ready. Businesses, schools and communities can generate and store their own power, easing load on the wider network and providing backup when storms hit. The Papareireia solar farm in Northland will generate up to 32 GWh a year under a long-term agreement to help power Ryman Healthcare villages, a clear example of decentralised generation supporting national supply.
For many organisations, the biggest untapped gains sit inside their own operations. Digital energy management gives real-time visibility of use. AI and analytics can forecast peaks, shift non-critical loads, and coordinate with on-site solar, batteries and EVs to take power when it is cheap and give it back when it is valuable. As EVs scale and data-intensive industries grow, these tools become essential.
This is not a choice between building more generation or optimising demand. We need both. The fastest path comes from collaboration between networks, major users, solution providers and communities to unlock flexibility and resilience while new generation and grid upgrades proceed. The good news is we do not need to wait. Smarter energy management can start today in every substation, business and home connected to the grid.