Smart electricity management:
Opportunities for the public sector
Report prepared for Singer Electric by Martin Jenkins
Final Report
Disclaimer
This report has been prepared solely for the purposes stated in it. It should not be relied on for any other purpose.
No part of this report should be reproduced, distributed, or communicated to any third party, unless we explicitly consent to this in advance. We do not accept any liability if this report is used for some other purpose for which it was not intended, nor any liability to any third party in respect of this report.
Information provided by the client or others for this assignment has not been independently verified or audited.
Any financial projections included in this document (including budgets or forecasts) are prospective financial information. Those projections are based on information provided by the client and on assumptions about future events and management action that are outside our control and that may or may not occur.
We have made reasonable efforts to ensure that the information contained in this report was up to date as at the time the report was published. That information may become out of date quickly, including as a result of events that are outside our control.
MartinJenkins, and its directors, officers, employees, agents, consultants, and advisers, will not have any liability arising from or otherwise in connection with this report (or any omissions from it), whether in contract, tort (including for negligence, breach of statutory duty, or otherwise), or any other form of legal liability (except for any liability that by law may not be excluded). The client irrevocably waives all claims against them in connection with any such liability.
This Disclaimer supplements and does not replace the Terms and Conditions of our engagement contained in the Engagement Letter for this assignment.
Contents
- Unlocking the potential for better public sector energy management — 2
- The public sector is a large consumer of electricity — 4
- Public sector electricity demand will rise in step with the economy — 5
- The technology exists to better manage demand — 7
- Companies like Singer Electric can help the public sector better manage its electricity use — 10
- Opportunities for better energy management in the public sector — 11
- Steps to realise the benefits of better electricity management — 12
Figures
- Figure 1: Defining Smart Energy Management — 2
- Figure 2: Estimated public sector electricity consumption (2023) — 4
- Figure 3: Public sector demand scenario – electrified grid — 5
- Figure 4: Public sector demand scenario – freight rail — 6
- Figure 5: Public sector demand scenario – public EV charging — 6
- Figure 6: Case study – smart EV charging in New Zealand — 7
- Figure 7: Case study – smart grid management in Spain — 8
Preface
This report has been prepared for Singer Electric by Michael Mills and Natalie James from MartinJenkins (Martin, Jenkins & Associates Ltd).
For over 30 years, MartinJenkins has been a trusted adviser to clients in the government, private, and non-profit sectors in Aotearoa New Zealand and internationally. Our services include organisational performance, employment relations, financial and economic analysis, economic development, research and evaluation, data analytics, engagement, and public policy regulatory systems.
We are recognised as experts in the business of government. We have worked for a wide range of public-sector organisations from both central and local government, and we also advise business and non-profit clients on engaging with government.
Kei te āwhina mātau ki te whakapai ake i a Aotearoa. We are a values-based organisation, driven by a clear purpose of helping make Aotearoa New Zealand a better place. Our firm is made up of people who are highly motivated to serve the New Zealand public, and to work on projects that make a difference.
Established in 1993, we are a privately owned New Zealand limited liability company, with offices in Wellington and Auckland. Our firm is governed by a Board made up of Executive Partners and Independent Directors. Our Independent Directors is Chair David Prentice. Our Executive Partners are Sarah Baddeley, Nick Carlaw, Allana Coulon, Nick Davis, and Richard Tait. Michael Mills is also a non-shareholding Partner of our firm.
Unlocking the potential for better public sector energy management
Through embedding good energy management practices using existing technologies
Smart energy management presents an opportunity for significant electricity efficiency gains, more effective public services, and maximum value for money through more impactful spending. This paper explores electricity demand across the public sector, focusing on the large fiscal and economic benefits of applying existing technologies to reduce and better manage public sector energy consumption.
Government departments are big users of electricity, yet they largely lack modern tools to effectively manage their electricity use. The current focus of government electricity procurement is on reducing the average price of electricity to government agencies, but not on ensuring the effective use of the electricity purchased.
Clear expectations of government agencies for smarter energy management are needed. Government is not using the levers available to it to realise the benefits of scale within and across the public sector in order to optimise its use of electricity.
By leveraging existing technologies, the public sector can achieve significant savings, ease pressure on the electricity grid, and set a strong example for other large energy consumers. Reducing the demand of large consumers strengthens the wider system, making energy more affordable and reliable for all (Peñate-Valentín MC, 2021).
Figure 1: Defining Smart Energy Management
(EV charging / smart system image)
Smart energy management systems optimise energy production, distribution, and consumption by leveraging technologies like smart grids and buildings, energy storage systems, load sharing, and data analytics.
These systems empower users to improve efficiency and reduce consumption through demand-side management strategies.
Source: (Mahmood, 2024)
This is a practical and achievable step to advancing key government priorities
A more efficient public sector
The Government aims to maintain prudent levels of public debt and return the operating balance to surplus by 2027/28, with a focus on improving the efficiency of public spending (Treasury, 2024).
With the public sector’s annual electricity bill exceeding $262 million¹, smarter energy management is needed to optimise use, eliminate waste, and save up to 30% on electricity bills (ABB, 2025) and up to 40% in maintenance costs (ABB, 2025).
Ensuring effective public services
New Zealand’s public sector is committed to meeting the high expectations of its citizens by delivering clear priorities, performance objectives, and measurable outcomes. This includes the need for agencies to reprioritise resources to deliver better outcomes and services (PSC, 2024).
Smart electricity systems empower agencies with insights about their electricity consumption and where to make changes. This enables the reallocation of money spent on electricity to public facing services. Greater visibility of electricity consumption also improves transparency and accountability.
Delivering net zero carbon emissions by 2050
The Government has set ambitious targets to achieve net-zero greenhouse gas emissions for New Zealand (excluding biogenic methane) by 2050, with the Electrify NZ plan aiming to double renewable energy by then (MfE, 2024).
However, clean energy generation cannot achieve a smooth transition alone. It is also necessary to reduce demand to ensure a reliable supply of electricity from intermittent sources. With smart systems, government agencies can reduce their consumption and therefore emissions, while also decreasing their impact on the national energy system, especially during peak demand periods.
Achieving greater value from public spending
Smart energy management systems offer solutions to align supply with demand and prevent disruptions, while lowering the need for costly investment in new electricity generation (EECA, 2025). This balance helps to alleviate market strain, prevent price surges, and ensure a dependable electricity system. This supports the Government’s commitment to ensuring efficient investments for reliable and cost-effective electricity supply (Beehive, 2024).
The public sector can also take control of its electricity consumption to position itself as a more attractive consumer, securing favourable contracts and dynamic pricing models, driving further cost savings in the long-term.
¹ This is an indicative figure from MBIE’s AOG Electricity Contract management records, not an official statistic.
The public sector is a large consumer of electricity
It consumes 6% (or more) of electricity in New Zealand
Based on estimates of available data, in the year 2023, public sector entities² used approximately 8,887 terajoules of electricity, accounting for around 6.4% of total electricity consumption. Overall consumption has stayed relatively stable with a gradual increase since 2017 (EECA, 2023). Future use will increase as New Zealand (including the public sector) decarbonises.
The public sector spends at least $262 million per year on electricity
Approximately 415 public sector entities participate in the All-of-Government (AOG) electricity contract, which accounts for around 3% of New Zealand’s total electricity consumption. The associated annual electricity spend is estimated at $262 million, a substantial figure.
However, this represents only a portion of the public sector spend, as not all public sector organisations procure their electricity through the AOG framework. The total public sector spend is likely more than $500 million.³
Figure 2: Estimated public sector electricity consumption (2023)
Source: (EECA, 2023)
Notes
- There may be crossover within these classifications across public and private domains. This assessment serves as an estimate rather than an accurate calculation of total public sector energy consumption. This should not be read as official statistics.
- We have used the following industry classifications to distinguish between public entities and residential or private businesses: Public administration and safety, Local government administration, Defence, Education and Training (including pre, primary, and secondary schools, and tertiary and other education), Healthcare and social assistance, and Rail transport.
- This is indicative information from MBIE’s AOG Electricity contract management records and should not be taken as official statistics.
Public sector electricity demand will rise in step with the economy
Electricity demand is rising due to growth in business, industry, and electric vehicle use. MBIE predicts that, by 2050, electricity demand will increase by 56.6% according to conservative estimates, or up to 81% under favourable economic conditions (MBIE, 2024).
Demand will be driven by increasing electrification
Including the replacement of fossil fuels with electricity and greater adoption of EVs
Electricity is only one of several energy sources used by the public sector. In 2023, an estimated 65% of public sector energy consumption came from electricity, while the rest came from natural gas (20%), diesel (12%), and coal (3%). Heating and cooling systems account for approximately 61% of the public sector’s total energy consumption, with 38% of this demand still reliant on fossil fuels (EECA, 2023).
As New Zealand decarbonises, the public sector’s overall use of electricity will increase as a proportion of its total energy use, replacing fossil fuel-dependent systems like heating and cooling with electric alternatives.
Transportation, historically reliant on fossil fuels, is set to become a major consumer of electricity as more vehicles shift to electric power. As these electric alternatives replace traditional petrol and diesel-powered transport, the strain on the grid will increase substantially.
Figure 3: Public sector demand scenario – electrified grid
(Hydro dam / grid image from PDF)
If 75% of the public sector were to switch away from natural gas, 50% away from diesel, and 75% from coal, this would increase public sector electricity consumption by around 36%.
This equates to 2066 terajoules of electricity, or enough to power over 80,000 New Zealand households or the entire Northland region for a year.
Source: (EECA, 2023) and (Electricity Authority, 2025)
Notes
- Fuel switching rates for natural gas, diesel, and coal are based on MBIE’s conservative estimates (Reference Scenario for the commercial sector, as outlined in the Electricity Demand and Generation Scenarios report (MBIE, 2024)).
- Between 1 May 2024 and 30 April 2025, Northland residents consumed an estimated 467 GWh of electricity (1,681 terajoules) (Electricity Authority, 2025).
- Comparative household electricity consumption is based on the 2024 average for New Zealand, estimated at 7,140 kWh per year (Electricity Authority, 2024).
Figure 4: Public sector demand scenario – freight rail
(Freight train image)
Currently around 99% of freight rail energy needs are met through diesel, with only 1% coming from electricity.
Passenger rail systems rely on electricity for 68% of their energy consumption.
If freight rail were to transition to a similar level of electricity use, this would result in a significant increase in electricity demand, from 15 to 1,070 terajoules annually—enough to power Taranaki for a year.
Source: (EECA, 2023) and (Electricity Authority, 2025)
Notes
- Between 1 May 2024 and 30 April 2025, Taranaki residents consumed an estimated 285 GWh of electricity (1,026 terajoules) (Electricity Authority, 2025).
Additional Context
The share of electric vehicles in the government fleet has surged from under 1.5% in 2020 to 23.9% in 2025, totalling 3,810 EVs (MBIE, 2025).
Charging these vehicles requires significant electricity—around 7,620 MWh annually⁴—the equivalent of the Arnold Hydro Station’s output or enough to power the entire population of Hanmer Springs (Electricity Authority, 2025).
In 2025, the Government committed to expanding public EV chargers from 1,378 to 10,000 by 2030 (Beehive, 2025). These figures highlight the need for strategic infrastructure planning to manage significant (and growing) electricity demands for EVs.
Figure 5: Public sector demand scenario – public EV charging
(EV charging image)
Installing 8,622 additional public EV chargers would increase electricity demand by 2,492 terajoules annually—enough to power Dunedin’s population.
This demand is also equivalent to dedicating one of Huntly Power Station’s generators solely to EV charging.
Source: (Singer Electric, 2025) and (Electricity Authority, 2025)
Notes
- Looking at government agencies currently under Singer management, the average AC per-charger consumption is 220 kWh per day. For every additional 100 chargers installed, electricity consumption increases by 11 megawatts per month (Singer Electric, 2025).
- Between 1 May 2024 and 30 April 2025, Dunedin residents consumed an estimated 393 GWh of electricity (1,415 terajoules) (Electricity Authority, 2025).
- Assumes an annual energy consumption of 2 MWh per vehicle for a fully electrified public sector fleet (Australia Electric Vehicle Council, 2024).
