1

Future Christchurch:
A Green Economy
Zhi Jian (David) Wong
4937263
University of Auckland
2
esis Statement
We are living in a world with nite resources
but with innite opportunities. e age of the
industrial economy is over and we are now
entering a new age dened by exponential
innovation. Human beings have always used
technology to overcome obstacles; the industrial
age for instance was a product of cheap fuels and
the invention of assembly line production. is
was an age of manual labour and high costs to
the planets natural resources. Today we are faced
with climate change, dangerously high pollution
levels and increased health eects due to how we
have used our planets recourses, the time is now
to use technology and innovation to solve the
urgent environmental challenges. I agree with
Einstein when he said, we cant solve problems by
using the same kind of thinking we used when we
created them. (Einstein n.d.) In order to solve
our current global economic and environmental
crisis, we need a completely new system and not
just one where we improve the current way of
operating. Fortunately because we live in an age
of innovation there are many sustainable solutions
being developed, at the moment they oen remain
as untested theories yet to be put into practice. But
the crisis in Christchurch provides an opportunity
to implement green economic strategies and test
how a city could be a prototype for the future.
CHRISTCHURCH TODAY AND
TOMORROW
Aer the devastating earthquakes of 2010 and
2011, the city of Christchurch was le with
its Central Business District (CBD) in ruins
and its infrastructure heavily damaged. At the
time of writing this thesis it is estimated that
approximately 8000 buildings will have to be
demolished in the whole of Christchurch (3
News 2012) and the estimated total costs of the
earthquake to the government will be $13 Billion
New Zealand Dollars (NZD); with the estimated
cost of rebuilding Christchurchs infrastructure
(NZD) to be $2 Billion. (Fairfax NZ News
2011) Additionally 30,000 homes are in need
of serious repair with each exceeding more than
$100,000 in damage costs. Christchurch is now
faced with the largest reconstruction project in
New Zealand history, but with this they have the
unique opportunity to recongure the urban plan
to create a more ecient and sustainable city. e
question is, will the people of Christchurch choose
to rebuild in the same way it was before, or will
they take this opportunity to rebuild a sustainable
and resilient city that is prepared for the future?
WHAT IS SUSTAINABLE?
We hear the phrases, sustainable and green used
oen, but what does it mean to be sustainable and
what are green principles? For the sake of this
thesis, I have dened sustainability as the ability
to sustain or maintain development without
compromising future developments. rough
this research lead design thesis I will describe
how a green economy could rejuvenate the city
of Christchurch and at the same time dispel
the common perception that economics and
sustainability are mutually incompatible.
A green economy is suitable for Christchurch
because:
- Firstly because New Zealand claims to be clean
and green and particularly the South Island
which is known for its beautiful scenic natural
environments. Further, Christchurchs identity is
the Garden City, which if taken seriously could be
the impetus behind promoting a Green economy.
- Secondly, with the impending global energy
crisis, the age of cheap energy is over. Because we
have passed peak oil, we need to start planning
how to supply our growing energy demands with
renewable sources.
- Which leads me to my third point; Christchurch
is fortunate with an abundance of water, long solar
hours, and arable land. e geographic location of
Christchurch is positioned well to take advantage
of its natural resources and create a sustainable
energy strategy to support the city.
- And lastly, the size of Christchurch makes it a
perfect candidate to be a prototype city to test
a holistic energy strategy. Christchurch has a
population of approximately 370,000 residents;
which makes it large enough to be relevant as
a major city centre but also small enough for
technology and infrastructure to be implemented
quickly and eciently. e speed of adoption
and evaluation can be analysed a lot faster in
Christchurch compared to a large metropolitan
city; where various governing bodies may impede
such a progress.
3
ENERGY
At the heart of a green economy is energy
use. In Christchurch, electricity comes mainly
from renewable sources, particularly the hydro
electricity dams in Benmore, Manapouri, and
Clyde. (EECA n.d.) e energy produced from
these hydroelectric dams is then feed into a
centralized grid and distributed across the country.
A centralized power grid is vulnerable to failure
due to unforeseen circumstances, which can leave
large areas without power. e reason being is
that it only takes one of the connections into the
main grid to fail to leave the whole city without
power. Evidence of this is seen in the increased
amount of diesel usage aer the earthquakes as a
back-up source for power. (Christchurch Agency
for Energy 2012)
Land transportation fuels contribute to 60% of the
citys total energy demand which the majority is
largely due to the car culture of the city. e result
of using these fossil fuels as a source of energy
contributes to the air pollution in Christchurch;
which is costing the city, $168 million per annum.
(Spronken-Smith 2002)
Another contributing factor to air pollution is the
use of domestic log burning replaces which oen
heat homes that lack insulation and therefore
demand greater heating loads particularly
during the winter months. e consequence are
unnecessary health costs due to the use of excessive
energy, which could be minimised substantially
through retrotting buildings and replacing
the inecient log burning replaces to a more
ecient lower emission design. Christchurch is in
a state of reconstruction which creates the perfect
opportunity to upgrade its existing housing stock
to be more energy ecient. For example, by
adding ceiling insulation in a pre 1960s house,
which typically does not have insulation, a cost
to benet ratio could be 7 times the investment
over a 30 year period. In other words the cost
of retrotting this house with insulation would
benet the residents 7 more times than it costs
to install the insulation over a period of 30 years.
(Beacon Pathway Limited 2009)
INVISIBLE ECONOMY
Unfortunately while the government purports
to be green, their actions are oen conicting
and they lack the ability to support planning for
long term benets, as is seen from their recent
commitments to start oil and fossil fuel exploration
at the expense of the natural environment. ere
are various examples of what happens when the
government takes proprietary control over natural
resources that show their short sightedness and
motivation is focused on immediate gains. An
example of this can been seen in China when
they expanded their timber industry and caused
excessive deforestation, which consequently
eected the environment. e market price for
timber was only half of what the Chinese had to
pay due to external environmental costs such as
desertication and loss of water runo. (TEEB
e Economics of Ecosystems and Biodiversity
2011) e reason why this happens is largely due
to the fact that the natural economy is an invisible
one, by this I mean the cost of natural resources
and their benets beyond their commercial value
are oen not calculated into their true costs.
Unfortunately when something is given for free,
the human mentality tends to make this mean it
as having no value. erefore when you try and
weigh the pros and cons of development at the
expense of natural environments, there seems
to be no loss of value but only prot to be made.
However as described in the previous example,
when you actually take into account the invisible
economy of ecosystems; the remaining balance
is quite dierent. e people who benet from
such short-term decisions are the few that stand
to make a prot; where as it is the majority who
will ultimately bear the costs of their actions. e
reason policies like these have gone through in the
past is because the hidden external costs of such
decisions has be blinded by the illusionary great
short term gains. ankfully, this notion of the
invisible economy is starting to be more prominent
into todays politics. e Greens party in New
Zealand is strongly opposed to the exploration of
fossil fuels and have reported of the extreme risks
that are related to deep sea drilling. If a major oil
spill was to happen it could be a loss of over $20
billion in terms of external costs towards the New
Zealand economy; and as stated before there is no
guarantee that this will not happen. (Green Party
2011) e total value in terms of future royalties
from this is only to be approximately $8 Billion
(National Party 2011); in which the majority of
the prots would go to foreign oil companies.
From this we can draw a direct comparison to
Chinas example of deforestation and can see that
the external costs and potential risk is clearly
more than the short -term benets.
ECONOMIC CATALYST
e sustainable solution to the ever-increasing
energy needs and a potentially very strong
economic catalyst for Christchurchs recovery,
could be one in the same. Solar energy is an
unharnessed potential in New Zealand with less
than 1% contribution to the total energy sector.
4
e estimated solar exposure is 2,050 hours
annually, which is equivalent to 1360kWh per
square metre, or approximately $360 a year of
energy at 27c per kwh. (Energy Eciency and
Conservation Authority 2001) Countries such as
Australia and Germany are successful examples
where solar power is a viable and promising source
of energy. Australia has similar solar conditions
as New Zealand but has a solar adoption rate
50% (the rate of which solar technology is being
implemented in new infrastructure); whilst New
Zealand is merely 2%. (B. Moore 2012) Australia
is planning to intensify its clean energy industry
by striving to become a zero-carbon country
by 2020; to do this they have produced a ten
year plan with strategic energy saving strategies
implemented in stages. By capitalizing on this
natural source of energy solar Christchurch could
learn from other global leaders and lead the way
within the New Zealand context.
New Zealand has an advantage over Australia as
it is smaller country which means less output for
infrastructural projects. As well the majority of
New Zealands energy is already from renewable
sources, so if New Zealand wanted to was to set the
same aim to achieve a zero carbon energy strategy,
it could do so with less time and investment.
New Zealand was on the right track with using
renewable energy but is now slowly shiing its
focus to fossil fuels. Surprisingly, this is at a time
when the demand and interest for renewable
energy is increasing globally; hence it would seem
unwise to stray away from the green agenda.
Another country leading the green revolution
is China, New Zealands second largest trading
partner. New Zealand, and specically
Christchurch could take advantage of its good
trading relationship with China and be a part
of Chinas 10 Trillion Yuan investment plan to
grow its clean technology industry by supplying
innovative ideas and products to the Chinese
market. If Christchurch invested in the technology
and industry driving the green energy industries,
and lead by example to becoming a truly green
energy city, it could potentially become a source
for producing and distributing both the solutions
and the technology behind renewable energy
sources.
Christchurch is at a cross roads, it can either take
the path of a Green Economy which would be
ecologically and economically responsible, or
continue down the road of Business as Usual
which neglects the long term consequences of
immediate returns. If Christchurch continues
the path of the Business as Usual Scenario,
nothing really changes, and a select few gets will
become richer, mainly the people who have a
share in the non-renewable sector. Energy prices
will continue to increase as the supply for fossil
fuels will inevitably run out, at which time New
Zealand will be forced to import Clean tech from
abroad, which by then will have become the
norm for energy production and consumption.
is would have a negative consequence on New
Zealands image as a clean, green country as well
it would lend to the continued degradation of the
air quality through pollution which has the related
consequences of negative health eects.
However, if Christchurch takes the steps towards
a Green Economy and focuses on further
investing in renewable energy technologies, it
could lead the way for New Zealand in choosing
a responsible and economically sound future. If
Christchurch catches the green wave by funding
and further developing a renewable energy
strategy, it could become a prototype city for the
rest of New Zealand and the world, and instead
of falling behind it could lead the way. e
city could build on New Zealands identity as a
clean green country to capture the attention of
foreign investors looking to invest in sustainable
technologies. e green economy is about the bare
essentials of everyday life, Energy (food as a source
of energy for humans), being aordable for every
household in Christchurch and in New Zealand.
e green economy is also about maintaining
the priceless scenic natural environment of New
Zealand to create an environment for innovative
individuals who want to stay in Christchurch;
where professionals gather to see how theories
of sustainability is put into practice to rejuvenate
life and activity within this fallen city. e green
economy is not about getting rich quickly but
rather to create a high quality of life that everyone
would want to live in. To start the momentum
for this transition towards a green economy a few
catalyst projects around Christchurch would just
be needed to activate certain areas as once people
start to hear about it and experience the change;
the concept will spread like a bug, the Green bug.
5
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GREEN ECONOMY BUSINESS AS USUAL ECONOMY
T.E.E.B. -
The Economics of
Ecosystems and Biodiversity
Placing Value in Nature,
and the Nature of Value
Green Energy and Clean
Technology
Investing in Renewable
Energy Systems
Green Jobs
Green Architecture
Passive Sustainable Design
Energy Ecient Systems
Sustainable Retrotting
New Zealand Policies
The Governments plan for
action for the future
economy of NZ
ECOLOGY ECONOMY EFFICIENCY EQUALITY
VS.
FUTURE CHRISTCHURCH: A GREEN ECONOMY
THESIS FRAMEWORK
COMBINING ALL THESE ASPECTS TO CREATE A CATALYST FOR CHANGE
ANALYSING THESE ASPECTS AND ITS RELATIONSHIP WITH CHRISTCHURCH
The Economic Value
Analysing the invisible
economic value of
Christchurchs environment
and ecosystems
Current Energy Plan
The current and proposed
energy plan for
Christchurch
Existing Architecture
State of the infrastructure
in Christchurch
Potential for retrotting in
Christchurch
New Zealand Policies
The Governments plan for
the reconstruction of
Christchurch
INVESTMENT IN GREEN RENEWABLE TECHNOLOGIES architecture as a driver to encourage :
What is the opportunistic potential in the rebuilding of Christchurch?
URBAN PLAN: Planned for future developments that will incorporate and encourage sustainable technologies and systems.
Future plans designed for the Future. To ensure plans do not get outdated before it is realized.
BUILDING DESIGN: A catalyst to encourage green technologies being implemented and to be a case-study model for future developments.
To show and proof the legitimacy of the theories of Green research into practice.
Future designs planned for the Future. To ensure design do not get outdated before it is realized.
6
Contents
esis Statement 2
A Green Economy 8
Economics of Energy 10
Economics of Eciency 12
Economics of Equality 15
Economics of Ecology 17
e Solar Economic Plan 20
Summation Diagram 24
Design Brief 26
Bibliography 27
7
List of Figures
Figure 1: e state of Christchurch 8
Figure 2: Injection of Economic activity needed 8
Figure 3: Re-Imaging the relationship 9
Figure 4: Linear Progressive Economic Model 9
Figure 5: Circular metabolism Economic Model 9
Figure 6: Decision Tree for Christchurchs energy
implementation (MWH, PWC, Taylor Baines &
Associates 2011) 13. 10
Figure 7: Typical Energy Use Prole (Beacon Pathway
Limited 2007) 12
Figure 8: Table of Housing Typology and its BCR values
for retrotting all measures Data Source: (Beacon
Pathway Limited 2009) 13
Figure 9: Graph of Housing Typology and its BCR
values for retrotting all measures Data Source:
(Beacon Pathway Limited 2009) 13
Figure 10: Table of Housing Typology and its BCR
values for types of retrotting Data Source:
(Beacon Pathway Limited 2009) 14
Figure 11: Fiscal Implications of the Green Party Plan
(100,000 green jobs for New Zealanders 2011) 19. 16
Figure 12: Forest ecosystem services and timber prices
in China. (TEEB e Economics of Ecosystems and
Biodiversity 2011) 11. 17
Figure 13: Comparison of land use values per ha,
Southern ailand. (TEEB e Economics of
Ecosystems and Biodiversity for National and
International Policy Makers 2009) 18. 18
Figure 14: Estimated costs of specic health eects used
in the analysis (G. Fisher 2005) 10. 19
Figure 17: Smog Diagram (Science Learning Hub 2008)
Original Source: e University of Waikato 2008. 19
Figure 15: Estimated annual costs of air pollution in
Christchurch by source and by eect (G. Fisher 2005) 10.
19
Figure 16: Annual PM exposure map. (G. Fisher
2005) 7. *PM10 particulate matter with aerodynamic
diameter of 10 micrometers or less 19
Figure 18: New Global Investments in Renewable
Energy (United Nations Environment Programme
2011) 211 20
Figure 19: Comparison of dierent levels of investments
in life cycle cost for a commercial oce in a tropical
climate (United Nations Environment Programme
2011) 348 20
Figure 20: Retrotting existing oce buildings in the
USA (United Nations Environment Programme 2011)
351 21
Figure 21: Table for dierent solar panel options and its
relative costs 22
Figure 22: Cost Trend for Solar PV (United Nations
Environment Programme 2011) 29. 23
8
A Green
Economy
A green economy is an economic development
model based on sustainable development. Its
most distinguishing feature from prior economic
regimes is direct valuation of natural capital and
ecological services as having economic value.
WHAT IS SUSTAINABLE?
Sustainability being able to maintain a steady
level of development without exhausting natural
resources or causing severe ecological damage.
Growth is acceptable if it doesnt involve exploiting
the natural or human resource for the benet of
economic growth.
Conventional Approach:
Pick ONE only: Economy / Sustainability
A Green Economy =
A Sustainable Economy
e point above illustrates the misguided
public perception on sustainability and how
they view it as a sacrice to the economy if they
wanted to achieve sustainability. is is far
from the truth which is what my thesis will be
illustrating. e complete opposite is what I am
going to be achieving as in our time of a great
economic recession and energy crisis. ere is
an opportunity for a more sustainable and green
economy to emerge as the practical solution to
help regenerate Christchurchs economy aer the
devastating earthquakes.
Figures 2 and 3 illustrates the current urban
state of Christchurch. e need for an economic
catalyst is necessary to shi Christchurch from
a bearable state into a more sustainable one.
Which further proves that an economic catalyst
is necessary for Christchurch not just from a
capitalist point of view but also from a sustainable
one.
However even though growth of economic
sector needs to happen. e process for this to
happen should be carefully considered. As what
is necessary is a balance of development and not
just irresponsible expansion.

BALANCED GROWTH:
Sustainable growth is a self-evident oxymoron,
as growth describes by Cato below describes
this dilemma well. Hence, the key to sustainable
growth is balance. Only when there is an
equilibrium between the economic, social and
ecological systems can there be true sustainable
growth.

It is not the result of growth that is important
to the people who make it happen. What matters is
the process itself; and the more of that process there, the
better politicians and business people like it. Growth
means change. More rapid growth means even more
change; more change means more market opportunities
to be turned into prots and more prots are not only
the systems motivating force but the source of the
nancial resources needed for it to grow faster still.
For a company director, corporate growth creates a
virtuous cycle with increased prots leading to increased
investment leading to more growth, more prots and
more investment still.
(Cato 2009) 38.
Figure 1: e state of Christchurch
Figure 2: Injection of Economic activity needed
9

Economy
Social
Ecology
Figure 3: Re-Imaging the relationship
REIMAGINING THE RELATIONSHIP
BETWEEN SOCIETY, ECONOMY AND
ECOLOGY
In the conventional views as seen in Figures 1 and
2, the elements interact but are not interdependent.
e elements are the three pillars of urban
development; economy, social and ecology.
e elements are drawn of equal size; which
symbolizes their importance. Although in reality
the economic realm carries a lot more importance
in decision making, with the communities bearing
the cost and the environment paying the highest
price of all. is is evident in the conventional
view of economists as they view their waste and
destruction happening somewhere else and not in
their realm. But of course, there is no somewhere
else; and this is shown below in Figure 4: Re-
Imagining the relationship. (Cato 2009) 37.
is diagram realistically depicts what is
happening in the world we live in. e human
society lives within the ecological system; and the
economic organization is developed within the
human society. From this we can see that society
and economy both are dependent on ecology.
Figure 4: Linear Progressive Economic Model Figure 5: Circular metabolism Economic Model
e green economic process however utilizes a
circular metabolism approach; also known as the
closed loop system. is is where the resources
and its waste are utilized as eciently to ensure
that there is no waste.
Hence no subsystem should be able to expand
beyond the capacity of the total system in which
it is a part of.
What Christchurch needs is a steady-state
economy and not a quick x. e green
economy is about living in balance with the
environment; almost like how an eco-system
works. At the moment Christchurch like most
cities are using the traditional linear progressive
economic model. is has to change as we are
running out of resources and the wastes that
is generated is just simply uneconomical; as
described later in the research.
10
Economics of
Energy
e economics of energy is a discussion on the
current state of Christchurchs energy situation,
its proposed future energy plans and the
repercussions of each.
Why Energy?
Energy is at the centre of the urban web, which
we call civilization. We need energy to survive;
energy from the foods we eat, energy to heat
or cool our homes and energy to power our
everyday appliances.
THE CURRENT AND PROPOSED
ENERGY PLAN FOR CHRISTCHURCH
Original Data Source:
(Christchurch Agency for Energy 2012)
e Base load for energy is from non-renewable
sources mainly from petrol and diesel sources.
e distribution between non-renewable and
renewable energy sources is 61:39. Land transport
fuels comprise of 52% of which the majority of
this is from vehicles.
Christchurchs electricity generation is 98% from
the renewable source of hydro dams. However
this renewable source is seasonal and helps to
reduce the peaks in energy consumption during
winter.
e energy usage trend is relatively static and
is declining due to the lack of activity aer the
Christchurch earthquakes, However we can see
that a slight trend of using non-renewable energy
at the present seems to be arising.
Commercial and residential are the major
consumption in electricity but yet prices are
increasing only for the residents. is provides
incentives for a better eciency in homes to
reduce the economic burden.
Solar and Wind technologies are not being used
enough to have an impact. e renewable hydro
source takes a large capital and time to set up.
What is missing is the increased energy load that
Christchurch will inevitably be facing when it
experiences growth. Solar and Wind technologies
has the potential to deal with this increase. Solar
and wind are also a lot more prominent from
a social awareness point of view. As if a Green
economy was to be developed; they could act as
the icons for change and could be integrated with
the landscape and architecture to highlight this.
EFFECTS OF THE EARTHQUAKE:
Christchurchs total energy use has not varied
substantially since 2008, but has reduced by 8.3%
following the February earthquake
Electricity use in Christchurch has reduced by
approximately 15% as a result of the earthquakes;
possibly due to inactivity.
Diesel use has increased due to the increase
of diesel generators being used to handle the
additional stresses on the centralized energy
grid demand during a disaster. Solar and Wind
generation helps to decentralize the energy grid
which makes the supply of power a lot more
resilient in times of needs. If the main grid was
cut o for some reason; these renewable energy
sources could be used to power the essentials to
keep the city alive.
e Christchurch Agency for Energy
An agency that has been set up to raise awareness
of and promote the use of renewable energy in
Christchurch through:
- evaluation of sites for production of
renewable energy
- encouraging the use of bio-fuels
- encouraging the use of solar heating
(Christchurch Agency for Energy 2012)
eir website, http://cafe.gen.nz, helps to provide
simple information about sustainable energy
practices and up to date information about
Christchurchs energy usage. e rst steps has
already been made for Christchurch to start and
grow a Green Economy.
FRAMEWORK FOR DECISION MAKING
IN THE DISTRICT ENERGY SCHEME
e Christchurch Agency for Energy realizes
these aspects and will hopefully use the proposed
Decision Tree process; which will help promote
sustainability. Solar and wind technologies
according to the decision are both able to GO
ahead.
Figure 6: Decision Tree for Christchurchs energy
implementation (MWH, PWC, Taylor Baines &
Associates 2011) 13.
11
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DISTRIBUTIONOF ENERGY
NON-RENEWABLE TOTAL RENEWABLE TOTAL
Electricity
35%
Petrol
27%
Diesel
25%
9%
Biofuels
4%
ENERGY SUPPLY TYPE
98%
1%
0% 0%
1%
ELECTRICITY COMPOSITION
HYDRO ENERGY
WIND ENERGY
GEOTHERMAL
BIOMASS
FOSSIL FUEL
98%
37%
40%
ENERGY USE BY SECTOR
INDUSTRIAL
COMMERCIAL
RESIDENTIAL
Other fossil fuels
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Energy Usage
Poly. (Energy Usage)
ENERGY USAGE TREND
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DIESEL USAGE TREND
Diesel Usage
Poly. (Diesel Usage)
0%
SOLAR
WIND
ENERGY
Data Source: (Christchurch agency for Energy 2012)
$
CHRISTCHURCH ENERGY
12
Economics of
Eciency
Economics of eciency is an analysis on existing
possible solutions to make the residential sector
of Christchurchs building stock more ecient.
e reason being that the residential sector as
mentioned before is the largest sector in terms of
energy use and because of its inecient heating
system during the winter; causes health problems
due to air pollution of inecient replaces. is
will be discussed later in the Invisible economy
section.
First the housing stock is categorized into the
typology that it suits and is weighted against its
Benet-Cost Ratio (BCR). e BCR is a ratio
to identify the relationship between the cost and
benets of the proposed investment.
e percentage of Non-Insulated Pre-1980 homes
in the Canterbury region is 129,389 out of 194,818
(66%) Whilst the average New Zealand total is
65% and for Auckland it is 59%. Because of this
lack of insulation we can see that in a typical
energy use prole of what a household uses their
energy for we can see that space heating plays
a signicant role in the energy demand cycle.
(Beacon Pathway Limited 2007)
COST BENEFIT RATIOS
Reference: Figure 8 and 9
rough the analysis of the housing typology
and its relative benet cost ratio; we can see
that the house typology of the 1940-1960 mass
construction type would be the most economical
to retrot. Due to it being the most common
housing typology in Christchurch and with the
highest Benet-Cost Ratio.
eoretically, it would cost approximately $1.6
billion dollars to retrot all 91,000 houses of this
type. However the net present value (NPV) for
this stock would be $2.6 billion; aer a period of
30 years through saving 630 Giga-Watt hour per
year (GWh/yr).
Interestingly, these were the same type of houses
that was damaged the most because of the
earthquakes. e reason being the unreinforced
masonry and monolithic structures that formed
cracks due to torsion and movement during the
earthquakes.
TYPE OF RETROFIT
Reference: Figure 10
rough the analysis of the housing typology and
its relative type of retrot; we can see that:
Firstly, adding R4 ceiling insulation in a house
with no existing insulation has the highest BCR of
around 7. However, this is only true for housing
constructed prior to 1980.
Secondly, adding draught proong, an ecient
wood burner and a heat pump seem to be another
good option for retrotting with BCRs ranging
from 3.2 5.5.
irdly, adding or replacing windows, curtains or
replacing the walls would seem to have a low BCR
compared to the other types of retrotting. ese
range from 0.5 (uneconomical) 1.7 (barely
economical)
Data Source: (Beacon Pathway Limited 2009)
Figure 7: Typical Energy Use Prole (Beacon Pathway Limited 2007)
13
Typology Stock Numbers
Total Inial Cost
$Million (negave
value)
GWh/yr Saved NPV $million BCR Average Prot p.a BCR * STOCK
Villas 20,099 422 162 679 2.61 22.6 52,438
20s Bungalows 18,013 364 140 575 2.58 19.2 46,468
Art Deco 12,428 238 91 375 2.58 12.5 32,010
Mass 40s-60s 91,337 1596 628 2557 2.60 85.2 237,671
Mul Units 1960-1979 18,172 230 88 298 2.30 9.9 41,717
House 1970-1978 28,892 568 226 977 2.72 32.6 78,588
House 1979-1989 30,211 419 151 699 2.67 23.3 80,611
House 1990-1996 20,578 275 105 462 2.68 15.4 55,149
Mul Units 1980-1996 11,969 126 41 128 2.02 4.3 24,128
House 1996 - 34,162 476 164 732 2.54 24.4 86,697
Mul Units 1996 - 5,412 60 18 59 1.98 2.0 10,734
Assumpons: 18 Degree Heang KEY: ABOVE AVERAGE
Period- 30 yrs
Discount rate = 5%
Energy takeback = 30%
Energy Price escalaon = 3%
0
50
100
150
200
250
300
Villas 20s Bungalows Art Deco Mass 40s-60s Mul Units 1960-
1979
House 1970-1978House 1979-1989House 1990-1996Mul Units 1980-
1996
House 1996 - Mul Units 1996 -
S
C
A
L
E
D

A
X
I
S
HOUSING TYPOLOGY
CHRISTCHURCH HOUSING TYPOLOGY BENEFIT-COST RATIO
Stock Numbers (#/500) Total Inial Cost $Million (-#/10) GWh/yr Saved (#/10) NPV $million (#/10) BCR (#*10) Average Prot p.a BCR * STOCK (#/1000)
Figure 8: Table of Housing Typology and its BCR values for retrotting all measures Data Source: (Beacon Pathway Limited 2009)
Figure 9: Graph of Housing Typology and its BCR values for retrotting all measures Data Source: (Beacon Pathway Limited 2009)
14
Figure 10: Table of Housing Typology and its BCR values for types of retrotting Data Source: (Beacon Pathway Limited 2009)
TYPE OF RETROFIT
Typology
R4 CEILING (NO
INSULATION)
ADD 2.8 (R1.5
EXISTING)
WALL R2.8
REPLACE
CLADDING
WALL R2.8
REPLACE LININGS
TIMBER FLOOR,
R2 INSUALTION
DRAUGHT
PROOFING
NEW DOUBLE
GLAZING
SECONDARY
GLAZING
CURTAINS WOOD BURNER HEAT PUMP HEAT TRANSFER
Villas 7.20 2.10 0.50 1.30 3.40 5.40 1.10 1.20 1.30 5.10 5.30 3.20
20s Bungalows 7.20 2.10 0.50 1.30 3.40 5.00 1.10 1.20 1.20 5.00 5.20 3.10
Art Deco 6.80 2.00 0.50 1.40 3.30 4.60 1.10 1.20 1.10 4.80 5.00 2.90
Mass 40s-60s 6.80 2.00 0.60 1.60 3.30 4.20 1.10 1.20 1.00 4.70 4.80 2.90
Mul Units 1960-1979 6.80 2.00 0.90 2.40 3.30 3.20 1.00 1.00 1.10 3.40 3.30 2.30
House 1970-1978 6.80 2.00 0.60 1.60 3.30 NA 1.10 1.20 1.20 5.00 5.30 3.00
House 1979-1989 1.30 2.00 NA NA 1.40 NA 1.20 1.50 1.30 5.00 5.30 2.00
House 1990-1996 1.30 2.00 NA NA 1.40 NA 1.20 1.50 1.30 4.80 5.30 2.10
Mul Units 1980-1996 1.30 2.00 NA NA 1.00 NA 1.00 1.00 1.40 3.20 3.40 1.50
House 1996 - NA NA NA NA 1.50 NA 1.20 1.50 1.50 4.40 5.10 1.40
Mul Units 1996 - NA NA NA NA 1.10 NA 1.00 1.00 1.70 3.20 3.50 1.10
BCR KEY
0-2
2-4
>4
GERMAN POLICY
In 1999, a serious energy ecient initiative was
started by the German government and in the
process stimulated growth in the insulation
and energy ecient sector. Between 2001
and 2006, a public investment of 3.8 billion
stimulated a further 15.2 billion in investments
and retrotted 342,000 homes. is initiative
created 25,000 jobs and saved 116,000 jobs in
the declining construction sector. Furthermore
this created a catalyst for demand in the energy
ecient sector; which led to growths in other
energy ecient technologies such as photovoltaic
panels and ecient ventilation systems. is is
just one example from a green economy principle
and has proven to yield such impressive results.
In 2010, according to Environment Minister
Sigmar Gabriel, the green jobs sector employs
about 1.8 million, which is a 50 percent increase
in just three years.
(Fitzgerald 2010) 82.
15
Economics of
Equality
e economics of Equality is an overview on
the current and future government policies that
aects the social aspect of a sustainable economy.
NEW ZEALAND CURRENT
SUSTAINABLE STATE
Currently, New Zealand is doing relatively well
in terms of being a sustainable and green country
compared to other countries globally. In late
2011, the Green Economy Index was published
analyzing the performance and perception of 27
countries and scored New Zealand rst in overall
performance. (Building a Bluegreen Future 2012)
Under the Emissions Trading Scheme (ETS),
there has been no new fossil fuel power plants
and has been a ve-fold increase in renewable
technology. e government intends to maintain
the $25/ton xed price option until at least 2015.
From 2008; there has been a dramatic change in
which the ETS provides incentives to plant trees
and to stop deforesting. Water is abundant in New
Zealand compared to the rest of the world; which
has resulted in poor management and being too
carefree about this valuable resource. (Building a
Bluegreen Future 2012)
FUTURE ENERGY PLAN FOR NEW
ZEALAND
However there is no time for celebration not just
yet; as this ranking maybe about to change very
soon. is can be seen in the current economic
development action plan that describes the focus
and steps the government will take to build New
Zealands economy.
What is worrying is that there is absolutely
nothing on renewable energy or incentives to
grow the clean energy sector. Furthermore, the
government intends to invest $12 billion more on
roads. However, what is the most disturbing is that
in the energy sector of the plan, the government
only focus is to build up and promote the oil and
gas sector. e next steps in the governments plan
is not to encourage renewable energy but promote
the non-renewable sector. (National Party 2011)
WHY?
According to the governments (National) report,
Our petroleum estate is under-explored. An
independent valuation has put a value of $8 billion
to $12 billion on potential future royalties from oil
and gas production.
However there has been no real costs published
about the true value of such operations and who
benets.
Key Points on why this does not make economic
sense: (Clendon 2011)
- OMV and Shell announced today that
the exploration rig to survey the Great South
Basin is going to arrive fully staed, so will oer
no New Zealand jobs.
- Taranaki's entire gas and oil industry
directly employs fewer than 800 people.
- Shell Oil just spilled more than 200
tonnes of oil into the North Sea, while OMV had
a spill o the Kapiti Coast last year. ere is no
guarantee of safety in oshore drilling.
- If a major oil spill was to happen it could
be a loss of over $20 billion in terms of external
costs towards the New Zealand economy; and as
stated before there is no guarantee that this will
not happen. (Green Party 2011)
OIL SPILLS
Petrobras and Anadarko are two companies
who have been granted permits to explore for
oil in deep New Zealand waters. Petrobras has a
history of accidents with 27 oil rig blowouts since
1980 and 282 deaths from accidents, explosions
and res in the last 15 years. Furthermore, the
American company Anadarko had a 25% stake
in the Deepwater Horizon well. e deepwater
horizon oil spill or the Gulf of Mexico oil spill
in 2010 had a total costs of $40 billion. (Graeme
Wearden 2010) is disaster could happen in New
Zealand waters and through the Rena disaster we
saw that New Zealand is unable to cope with small
oil spill in shallow water; let alone a deep water
oil spill.
ALTERNATIVE TO THE OIL ECONOMY
e Green Party has proposed and planned out an
alternative to the oil economy, a green economy
plan, 100,000 green jobs for New Zealanders,
ree main points on how they are planning
to achieve this: (100,000 green jobs for New
Zealanders 2011)
16
1. Directly investing into extending home
insulations to a further 200,000 homes. is
would result in an annual energy saving of $144
per household.
2. Using New Zealand energy companies to
drive exports. e global market for renewable
energy technology is forecast to reach an annual
value of $590$800 billion by 2015. If we can
secure just 1% of this market, we can build a
new $68 billion export industry here at home,
creating 47,00065,000 new clean-tech, high-
value jobs (59,00081,000 new jobs if you include
indirect and upstream employment eects).
3. To help grow the clean technology sector,
support for greening of Small Medium Enterprises
(SME) will help drive growth in the private sector
via tax incentives and start-up funds.
e Green Party also has calculated how it
intends to pay for its costs and have created an
approximate scal implication on its plan; to show
the economic viability of their plan. See Figure
11 for more details. (100,000 green jobs for New
Zealanders 2011)
In summary, the amount of eort and investment
needed to encourage this risky operation of oil
exploration would be better spend into providing
green jobs for the people of New Zealand.
Unfortunately the government in power at the
moment is National; but the Green party has
slowly been climbing in popularity and is the
third most inuential party at present.
PRIORITY JOBS Green Party Aotearoa New Zealand 19
Fiscal implications
This is a summary of the scal implications of our priorities for 2011/122013/14.
Increased tax revenues
from raising the
minimum wage $519m
Raising a levy on the
commercial use of water
$370-570m per year $1110m
Comprehensive tax on
capital gains (excluding
the family home),
up to $4500m per year $1000m
A temporary levy
on income to fund
the rebuilding of
Christchurch
$1000m per year for ve
years $3000m
Reprioritised
government spending on
new motorways
$3500m saved over the next
ten years $1050m
Phase out on-going ETS
subsidies $1200m
Additional mining
royalties & concessions
$50m per year $150m
Bringing 100,000 kids
out of poverty by 2014 priceless
TOTAL
REVENUES
$8.029
billion
Extending the In-Work
Tax Credit
$300m per year $900m
Reinstating and
extending the Training
Incentive Allowance
$40m per year $120m
Temporary transitional
fund to help small
businesses adjust to a
minimum wage increase
$20m per year $60m
Clean Rivers initiatives
$138m per year $414m
Extending Heat Smart to
200,000 more homes $350m
Build an additional 2000
new social housing units $670m
Conservation initiatives,
additional to Clean Rivers
initiatives $432m
Forestry initiatives
$12m per year $36m
Boost R&D funding to
$500m in 2014 $1000m
New start-up fund for
clean technology SMEs $100m
TOTAL
COSTS
$4.082
billion
Revenues Costs
Ending Child Poverty Priority Ending Child Poverty Priority
Clean Rivers Priority
Clean Rivers Priority
Green Jobs Priority
Green Jobs Priority
Figure 11: Fiscal Implications of the Green Party Plan (100,000 green jobs for New Zealanders 2011) 19.
17
Economics of
Ecology
Figure 12: Forest ecosystem services and timber
prices in China. (TEEB e Economics of
Ecosystems and Biodiversity 2011) 11.
e economics of ecology is a study on revealing
the otherwise invisible economic value of nature.
e invisible economy is vital for current urban
development as at present we have this mentality
that just because something is free; it does not
have value. Hence it is crucial to quantify and
put a value on eco-systems; as at the moment in
todays market rate, they are valued at $ ZERO;
because these natural resources are given to
use for free. e Economics of Ecosystems and
Biodiversity is thinking of the entire life cycle of
a development and end-user products to ensure
the decisions we make are based on the true
values of the resulting consequence. (TEEB
e Economics of Ecosystems and Biodiversity
for National and International Policy Makers
2009)
PLACING VALUE IN NATURE, AND
THE NATURE OF VALUE
Valuing the Invisible Economy:
- Conserving forests avoids greenhouse
gas emissions worth US$3.7 trillion
- Global sheries underperform by
US$50 billion annually due to over shing
- Bee keeping generates US$ 213 million
annually in Switzerland
(TEEB e Economics of Ecosystems and
Biodiversity 2011)
THE TRUE VALUE OF
UNSUSTAINABLE DEVELOPMENT
By applying the T.E.E.B. principle the true value
of a timber industry in China can be shown and
be weighed in an economic term between its
pros and cons. From Figure 12, we can see that
the Market Price of Timber (prots) is half of
what the external costs is to the country. ese
external costs range from ooding damage in
1998 to desertication. (TEEB e Economics
of Ecosystems and Biodiversity 2011)
Another example of this is in ailand where an
economic comparison to convert a mangrove
forest into a shrimp farm is used to show the
true value of not valuing the invisible ecological
economy and the reason why this is still
happening. In Figure 13, we can see that the
initial prots from the prawn farm would be a
clear decision but when you take away subsidies
and include restoration costs; the entire scenario
is changed. e result of the prawn farm would
result in a negative value whilst the mangrove
forest is actually producing that same loss value
as a prot for the community.
is explains why policy makers approve such
decisions to go forward as the initial conversion
decision is clearly an easy one for those making
the private gain but the conclusion changes if the
resulting costs and benets to society are also
included in the picture.
THE ECOLOGICAL VALUE IN
NEW ZEALAND
Valuing the Invisible Economy in New Zealand:
e Te Papanui Conservation Park in New Zealands
Lammermoor Range provides the Otago region with
water for free that would cost NZ$ 136 million to bring
in from elsewhere. e 22,000 hectares tussock grass
area acts as a natural water catchment, supplying water
ows valued at NZ$ 31 million for hydroelectricity, NZ$
93 million for urban water supply and NZ$ 12 million
for irrigating 60,000 hectares of Taieri farmland. e
total benet is equivalent to the cost that would have to
be paid to get the water currently provided free of charge
from nature.
(TEEB e Economics of Ecosystems and
Biodiversity for National and International Policy
Makers 2009) 19.
18
Figure 13: Comparison of land use values per ha, Southern ailand. (TEEB e Economics of
Ecosystems and Biodiversity for National and International Policy Makers 2009) 18.
THE ECOLOGICAL VALUE IN
CHRISTCHURCH
CHRISTCHURCH AIR QUALITY
Eighty percent of Christchurchs winter air
pollution comes from wood or coal burners and
open res. Only 10 percent comes from vehicles
and 10 percent from industry.
e older and less ecient a re is, the greater
the quantity of emitted dangerous ne particulate
emissions (known as PM10). On cold, still winter
nights, these particles can form into choking,
brown smog.
For up to 50 days each winter, the level of PM10
particles in the air in Christchurch exceeds
Ministry for the Environment guidelines.
Research indicates each year this pollution is
responsible for:
- serious health problems for several
thousand people, such as respiratory and cardiac
illness (causing them to take time o work,
which aects the local economy)
- the premature deaths of more than 130
people due to respiratory or cardiac illness
- higher health costs for everyone, due to
heavier demand on the health system
- a damaging eect on the public image of
Christchurch.
(Science Learning Hub 2008)
e economic health costs can be estimated to be
costing Christchurch $168 Million per annum.
In addition, premature deaths because of air
pollution are 158 lives lost a year.
(Spronken-Smith 2002)
19
Figure 14: Estimated costs of specic health eects
used in the analysis (G. Fisher 2005) 10. Figure 15: Estimated annual costs of air pollution in Christchurch by source and by eect
(G. Fisher 2005) 10.
Figure 16: Annual PM exposure map. (G. Fisher 2005) 7.
*PM10 particulate matter with aerodynamic diameter of 10 micrometers or less
THE ECONOMIC COST
BREAKDOWN
DOMESTIC HEATING IS THE
PROBLEM
Estimated Breakdown of the sources:
- Domestic sources: 76
- Industrial source: 13
- Vehicle sources: 11
(G. Fisher 2005)
SMOG
To further complicate things, in Christchurch
because there are hills nearby, a layer of warm air,
known as an inversion layer, traps the smog down
at street level. is directly aects the people and
is worst in the evenings.
(Science Learning Hub 2008)
Figure 17: Smog Diagram (Science Learning Hub
2008) Original Source: e University of Waikato 2008.
20
e Solar
Economic Plan
e solar economic plan is about realizing the
solar potential in Christchurch and the economic
benets this entails.
GLOBAL INVESTMENT
INTEREST
INVESTING IN RENEWABLE ENERGY
e current economic crisis has led people to
believe that there is not enough money in the
world to be investing in Green technologies. Quite
the contrary as it turns out. Reuters has reported
that Apple Computer (APPL) had $93 Billion in
cash, as well as long and short term investments.
In September of 2011, the Wall Street Journal
reported that corporations had a higher share of
cash on their balance sheets than at any time in
nearly half a century, with the Federal Reserve
reporting that non-nancial companies had more
than $2 trillion in cash and other liquid assets, up
more than $88 billion from the end of March of
2010.
(e Green Economy 2012)
(e Green Economy 2011)
So what are these companies going to invest in?
e renewable market that was niche before has
now matured and has shown signicant growths
world-wide. e reasons being the global energy
crisis and climate change issues has generated
increased demand and interest.
So the question remains, is Christchurch able to
catch the Green wave before it is too late?
MENTALITY OF GREEN INVESTMENTS
e concept of green investments are for planners
who look at the long term prospect of benets
and are not for investors looking to make a quick
buck. e graph explains this concept of a how
a high performance investment may have a high
capital cost but through time this costs more than
pays for itself and becomes a larger prot. is
is shown by expressing the savings as positive
cash ow, and showing the total accumulated
savings (net present value, NPV) over the life
of the technology, it can be seen that the overall
investment (added cost plus accumulated savings)
pays o over time.
CONCEPT OF BALANCE
However this concept of green investment is not
as simple as this, If you invest a large amount of
capital through time you will surely prot even
more.
Green investments are about balance and
tradeos. is can be seen in the table where
a simulation was run to retrot all the oce
buildings in the USA. e rst scenario was to
have an energy savings of 10%; whilst the second
scenario was a savings of 40%. e results was that
both scenarios whilst proved to be protable the
less aggressive plan, 10% savings, proved to have
the higher prot at the end of the scenario, aer
15 years. e reason being the initial capital costs
was far too great for the savings to recuperate in
that amount of time.
Figure 18: New Global Investments in Renewable
Energy (United Nations Environment Programme
2011) 211
Figure 19: Comparison of dierent levels of
investments in life cycle cost for a commercial oce
in a tropical climate (United Nations Environment
Programme 2011) 348
21
Figure 20: Retrotting existing oce buildings in the USA
(United Nations Environment Programme 2011) 351
GLOBAL GREEN WAVE
Globally, this green revolution is everywhere;
some more serious than others. To narrow this
down only Australias and Chinas plans for a
sustainable future will be discussed; for the reason
being that these countries aect the New Zealand
economy the most.
ZERO CARBON AUSTRALIA
STATIONARY ENERGY PLAN
Beyond Zero Emissions is the initiative behind
developing a detailed, priced blueprint for the
Australian economy to transition to be completely
zero carbon by 2020. e Zero Carbon Australia
project consists of 6 transition plans covering the
6 sectors of energy, buildings, transport, land use,
industrial processes and coal exports. (Beyond
Zero Emissions 2010)
STATIONARY ENERGY PLAN:
- Demonstrates that 100 renewable
energy is achievable and aordable
- Is a fully costed and detailed system of
concentrated solar thermal plants and large scale
wind farms
- Proved that with commercially available
and proven technologies renewable energy can
power Australia within 10 years
- Launched in June 2010
(Beyond Zero Emissions 2010) 35.
ECONOMIC ARGUMENT
e total investment to transition Australias
stationary energy sector to renewable electricity
production is $370 billion over the next ten
years, or an average of $37 billion per year. is
is equivalent to 3% of Australias $1,200 billion
annual Gross Domestic Product. While this is
about $260 billion more than the capital spending
required under business-as-usual by 2020, this
investment is easily recouped over the longer
term as the costs of purchasing oil, gas, and coal
are avoided. e net present cost of the ZCA2020
Stationary Energy Plan is approximately equal
to the net present cost of business-as-usual to
2040. e economic cost-benet analysis is
therefore attractive, even without considering
the enormous value of avoiding climate change
costs which, as Sir Nicholas Stern warns, could
reach 20% of yearly GDP by 2050. (Beyond Zero
Emissions 2010) 128.
RELEVANCE TO CHRISTCHURCH
is is important for Christchurch as the demand
for solar and wind technologies will be high in
the near future. Christchurch could tap into our
neighboring countrys emerging market, since an
eective trading platform between New Zealand
has already been established. On the other hand,
if New Zealand does not start to develop their own
innovative sector within the clean technologies;
they will risk losing even more talent over to
Australia and further increase the ever growing
Trans-Tasman exodus.
22
CHINAS AMBITIONS
China has planned to invest 10 trillion Yuan into
developing its clean-tech industries; thus injecting
millions into the New Zealand economy if we
have a part to play even if it is just a small part. (a
1% share would still be 20 million NZD)
Chinas recent global dominance in Solar and
Wind Technologies provides an additional
opportunity to export innovative solutions
to China to do the intensive manufacturing.
Moreover the platform for trade with the Chinese
has been established and is continuing; and has
proven to be successful. e free trade agreement
(New Zealand being the rst developed country
to do so) has already been set up and China
is already the second largest exporter in New
Zealand; with the trade relationship of the two
countries growing stronger because of the strong
dairy and agriculture demand from China. (NZ
Herald 2012)
"With cleantech a big, big component of China's
immediate future, if New Zealand can secure even
a small slice of that business, it will be big news
for local rms and the wider economy," - New
Zealand Trade and Enterprise Guangzhou trade
commissioner John Cochrane. (NZ Herald 2012)
RELEVANCE TO CHRISTCHURCH
Hence Christchurch as a proto-type city is a great
opportunity for potential investors to see Kiwi
ingenuity rst hand. However this shi to clean
technologies has to be done rst domestically
before it can be attractive internationally.
SOLAR POTENTIAL
Solar energy is the most abundant, practically
inexhaustible primary energy available in New
Zealand.
It is a resource of immense potential. Technologies
are available at present to convert this resource to
heat and electricity in a cost competitive manner.
is resource has the technical potential to supply
all present and foreseeable residential energy
needs and contribute substantially to commercial
and industrial requirements as well.
e sun beams down 2,050 hours of energy
every year without fail. is is an equivalent of
1360kWh in every metre square; or approximately
$360 a year of energy at 27c per kwh. (Energy
Eciency and Conservation Authority 2001)
WHY SOLAR AND WIND?
Solar energy would help New Zealand diversify
its present energy sources and to grow its existing
manufacturing base. Solar and Wind technologies
have a fast set up and implementation time
compared to the other energy generation types.
ICON FOR SUSTAINABLE
Solar and Wind energy systems can also be
integrated within the architecture and landscape
of a community to provide an icon for this
transition to a greener economy. e other
renewable energy sources are either in a remote
part of the country or away from the community.
is disengages the public from energy issues and
separates the connectivity between the source and
user; which is critical to change a community to
become more energy ecient. What could be
more encouraging than a solar panel or wind
turbine reminding you to turn o the lights?
COST OF SOLAR
At present the cost of solar energy from
photovoltaic (PV) panels start at around $8500 for
a 1.52 kW system. e breakeven point for a typical
grid connected PV installation at a New Zealand
urban site can be from 10-15 years. e lifetime
of the panels is guaranteed by the manufacturers
for 20 years. (Market opportunities for dispersed
photovoltaic energy sources in NZ; I. Sanders and
A. Gardiner, Industrial Research Limited 2000.)
Christchurch Calculation:
-1.52 kW system produces 2128 kWh p.a
-Electricity rate in Christchurch is $ 0.3068
-Calculation = 2128 kWh x $0.3068 =
$ 652.87 p.a (savings)
-Cost of 1.52kW system = $8,495
-ROI = $652.87/ $8,495.00 = 7.7%
100/7.7 = 13
Approximately 13 years for a small 1.52kW solar
system to break even at the current rate and
technology.
e lifetime of both solar thermal and solar PV
technologies are greater than 25 years. Solar
PV modules carry a minimum manufacturer
guarantee of 20 years; longer than most power
plants, conventional or new.
Figure 21: Table for dierent solar panel options
and its relative costs
1.5 kWp 3.0 kWp 6.0 kWp
System Price $8,000 $14,000 $25,000
Required Roof area (m2) 12 24 40
Annual generation (kWh) 1850 3720 7600
Annual Savings $486 $978 $1,997
Annual Return 6% 7% 7%
CO2 Savings (kg p.a.) 1140 2300 4700
Original Source: http://www.solarzone.co.nz
23
SOLAR PRICE DROPPING
It is estimated that in a few years times the price
of solar will be on par with fossil fuel prices. e
price for solar in some countries have already
reached parity; where putting solar modules
on the roof to replace electricity purchase from
the grid is a good investment for consumers.
Countries who have already reached this are
Denmark, Spain and Italy. (Eric Roston 2012)
From the graph we can see that the price for
solar energy decreases as we move up in scale.
However for smaller scale projects, it is just a
matter of the economies of scale. Currently New
Zealand does not have the required demand
for solar to justify a larger scale operation. is
is where there is potential for Christchurch to
contribute to the solar future of New Zealand;
it can provide that demand of solar panels.
Due to the vast amount of reconstruction and
reconguring of the city.
As we can see in Figure 22, the price for smaller
more domestic units for solar energy is expected
to drop in price. Which in turn can supply the
residential sector of the energy market; which
will benet the most from this shi in energy
generation.
CURRENT CHRISTCHURCH MARKET
SOLARCITY
New Zealands leading all in one solar
company. Based in Nelson and manufactures
in Christchurch. (SolarCity n.d.) Part of a large
new Christchurch development, Higheld. e
contract will see all 2200 homes in Christchurch's
proposed Higheld subdivision tted with solar
energy systems, with potentially more than
another 1000 in other subdivisions planned by
developer Maxim Projects. (B. Moore 2012)
SolarCity is likely to double the size of the
company over the next year and cement Nelson's
place as New Zealand's solar energy capital, chief
executive Andrew Booth said today. Although
the stable lower prices for solar energy made
it a no-brainer for new homes, New Zealand's
solar adoption rate was well under 2 per cent, Mr
Booth said, compared with up to 90 per cent in
Israel and more than 50 per cent in certain parts
of Australia with a similar solar resource.
GREENWASHING
is may be good news for the solar energy plan;
but what is also important is the way the solar
energy image is being used. e term, green-
washing is where companies or individuals
employ green products or principles to sell their
idea or plan; and when you actually calculate the
implicated costs, the end result is not sustainable.
To create a green economy or sustainable city; it
is not as simple as slapping on some solar panels
on the roofs. ere are other criteria that should
be met as well; such as the urban form and
transportation modes.
ENASOLAR
Based in Christchurch, New Zealand EnaSolar
is a wholly owned and operated solar division of
Enatel Limited.
We've done nothing but grow since the earthquake, and
that's grow in terms of production facility, grow in terms
of the quality of our people, our outlook and market.
ALAN BOOTH, ENASOLAR
Figure 22: Cost Trend for Solar PV (United
Nations Environment Programme 2011) 29.
PERCEIVED BARRIERS TO SOLAR
e cost of PV (compared to coal, gas or even
large hydro based electricity) does not, as
yet, factor in the benets of clean electricity
production and an environmentally friendly
image or do not internalize the costs of
environmental damage and international
obligations. e absence of this price dierential
is a barrier to adoption of PV technology in
particular; where the initial capital costs is quite
substantial. (Energy Eciency and Conservation
Authority 2001)
erefore it is critical to not forget the external
costs and invisible benets for such an
investment option; as discussed previously
in regards to the invisible economy and the
economic implications when investing in solar.
24
$
$
$
$
$
$
$
$
$
$
THE GREEN ECONOMY
ECONOMY
Increase in other renewable technologies
Increase in Research and Development
Increase in Green Jobs
Clean and Green Natural Environment
Attraction of Foreign Investment
Security in Energy Supply
Export of creative technologies and solutions
Energy efficient culture
Better Healthcare
Higher Quality of Life
Increase in Solar Energy
Attraction of Foreign Talent
Localized Food Production
Lower Costs of Living
Community Bonding
Better Transport System
CLOSED - LOOP ECONOMY
Summation Diagram
25
?
$
$
$
$
$
$
BUSINESS AS USUAL
Brain Drain
Rising Oil Prices
Unforeseeable Oil Disaster
Decline In Industrial Market
Inefficient Transport System
Pollution
Defamation Of NZ Brand
Higher Transport Cost
Loss in Tourism
Lower Quality of Life
Lower Quality of Health
Health Problems
Degradation of Natural Environment
Rising Costs (Globalization) Health Care
Food
Energy
Rise in Crime rate
ECONOMY
Consumerism
Lack of Community Spirit
END USE ECONOMY
26
Design Brief
POTENTIAL SITES:
Urban Inll. Large plots of unused land or
damaged areas in the city to regenerate growth.
Perhaps within the nodal points from previous
research.
Possible site scenarios:
1. Large plot of land available for a mixed
used eco development hub.
2. Smaller plots of land within the city to
show potentials of how intensication can also be
done at a smaller scale but at multiple locations.
27
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