Contributing to a lower carbon world
We’re committed to Aotearoa’s transition to net zero emissions by 2050. We’re preparing our networks for emerging technologies and low carbon alternatives, and we’re reducing our emissions by improving our ways of working. 

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What we do
Our greenhouse gas emissions
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Goals and targets FY26

Here's what we want to achieve for Pou taiao over the short, medium and long-term.


Short term (1 April 2025 - 31 March 2026)

  • Customer decarbonisation - Measure our contribution to customer decarbonisation through:
    1) Forecast MWh electricity enabled through committed industrial decarbonisation projects (customers changing to a lower carbon energy source). 
    2) Additional MW capacity through public EV chargers on our network. 
    3) Additional MW capacity of Distributed Renewable Energy delivered directly into Powerco's electricity network (projects over 100kW) 
    4) Fossil gas volumes (GJ) displaced by renewable gas.
  • Customer decarbonisation - Reach Final Investment Decision (FID) on at least one biogas project.

 

Medium term (1 - 3 years)

  • Reduce corporate emissions - Reduce generator usage through the management of reactive fault management.
  • Customer decarbonisation - Reduce the average connection time for Electric Vehicle chargers to be installed on our network. During FY26 we will baseline connection times.  
 

Long term (3+ years)

  • Reduce gas fugitive losses - 25% reduction in gas line losses emissions by 2030, based on an FY25 base year.
  • Reduce corporate emissions - Annual emissions reductions to meet  our absolute emissions reduction target of 57% reduction in scope 1 and 2 emissions (excluding electricity distribution line losses) by 2030 from an FY21 base year.
  • Customer decarbonisation - 20% of residential and small commercial gas volume  is renewable by 2030.  Identification of a specific year-on-year targeted renewable gas volume supply for FY26-FY30. 
     
 

What we did during FY25

  • Our new leakage detection vehicle has allowed us for the first time to survey our entire gas network in one year. This is now part of our standard leakage detection programme.
  • Using the last five years of actual gas leakage data, we have successfully established a more accurate baseline emissions value.  This has been reviewed externally and verified as part of Powerco's GHG inventory reporting. 
  • 1) 3.65MW of forecast electricity was enabled though committed industrial decarbonisation projects (customers changing to a lower carbon energy source)
    2) >7 MW of additional EV charger capacity was made available on our network
    3) 4.45 MW of additional distributed renewable energy was delivered directly into Powerco's electricity network (projects over 100kw); and
    4) No fossil gas was displaced by renewable gas.
  • During FY25, carbon emissions from our vehicle fleet reduced by 14%, which far exceeded our target of a 6% reduction.
  • During FY25, with support from an independent specialist sustainability firm, we set an absolute emissions reduction target of 57% reduction in scope 1 and 2 emissions (excluding electricity distribution line losses) by 2030 from an FY21 base year.
  • We undertook feasibility and network integration work to advance our understanding of the technical and economic feasibility of upgrading biogas from landfills and wastewater treatment plants for renewable natural gas integration. 
 
  • Unfortunately FY25 emissions due temporary generation increased.  However, during FY25 we began tracking our specific spend on temporary generation used for electricity faults, with the aim of being able to show the impacts of initiatives focussed on reducing generator costs.  Some of these initiatives will also reduce the emissions associated with generator use on our network.  These include proactive involvement with generator plans, monitoring of generator use and having a specific resource focussed on network faults.
  • Our existing connection system and contractor model, makes it difficult to monitor or report accurately on EV connection timeframes.  From September 2025, Powerco will shift to a Powerco-managed direct customer connection model. At the same time, our connection system will be upgraded. This change will give Powerco greater oversight of connection management, enabling us to track and report on connection timeframes by the end of FY26.  For this reason, our FY25 target has been rolled over to FY26 while we make these changes. 

 
  • Previously our calculation for greenhouse gas emissions from gas line losses, was based on the amount of gas passing through our pipes.  This was inherently inaccurate (being based on a set leakage rate) and did not reflect the outcomes of our targeted pipeline replacement programme. During FY25, we began utilising the Marcogaz model, which uses actual leakage data.  In combination with this, our new leakage detection vehicle means we can find gas leaks faster and this greater data collection is helping to inform our decisions on future improvements to leak repair times and emissions.
  • In FY25, we made progress towards our 2030 renewable gas target by advancing integration planning, engaging with potential developers, and exploring supply opportunities for our distribution network.
 

What we did during FY24

  • Powerco's decarbonisation strategy was completed and published internally. Work on climate change adaptation is underway with plans included in the 2024 AMP.  Longer-term actions will be rolled into our network modernisation plan.
  • A pipeline of load and hosting capacity requirements was established, enabling short and long-term strategic planning.
  • FY24 saw a significant shift in fleet strategy, with our pool fleet electrified and changed 21 diesel utes for hybrid electric vehicles.   Although our target of 15% reduction in vehicle emissions wasn't achieved (in one year), we did reduce fleet emissions by 11%; and importantly we curbed the upward trend.  
  • A business wide public emissions reduction target was not set in FY24.  Significant progress was made in charting emissions reductions pathways for our internal target emissions sources.  We are still focused on setting a target - now proposed to include our gas line losses (originally excluded). 
  • Fast EV charger providers were supported with capacity studies to inform their rollout of chargers.  Process enhancements have been identified for FY25 implementation.  We have also improved the information and enquiry process for EV infrastructure on our website (https://www.powerco.co.nz/get-connected/ev-infrastructure).
  • Powerco's low carbon transition strategy was outlined in the 2023 Gas AMP, published in September - Chapter 2 and 4 External Forces and Future focused strategies.
  • A review on the integration of biomethane into the gas network has commenced. During FY25, we will complete an analysis for the potential to inject 250 TJ into the Manawatū network.

  • Progress towards this goal has been made through our FY24 target to set up a streamlined process. 
  • Technical standards for grid scale distributed energy were published during FY24. 
    A utility scale generation portal is now available on the Powerco website for information relating to large scale generation, including a hosting capacity map.
    We met our target with 225MW of utility scale generation conditionally approved. 

  • Permanent backup network generators - Ongoing monitoring reveals that biofuel or hydrogen-based permanent network generators are not yet commercially available. Grid-scale battery storage for long-duration outages remains prohibitively expensive.  Our current focus therefore remains with combined solar PV, diesel generation and (short-term) battery storage for remote sites.  This is an area that we will continue to investigate and new solutions will be trialed as these become available.

    Temporary generators used during outages - During FY24, we utilised a portable temporary small-scale battery (BESS) for a 7-hour planned outage.  This resulted in a 100% diesel reduction compared to standard diesel-only generation units.  Four portable hybrid generators that include a battery to reduce diesel use, have since been procured and will be used on unplanned outages in FY25.  These will provide insights for the application of this technology to potentially move to larger batteries for higher capacity requirements. 

  • During FY24, we announced two initiatives to investigate using biogas in our network to help customers to decarbonise. During FY25, we will conduct technical analysis and engineering design to understand the upgrading plant and transport methods required to bring the biogas to pipeline specification and inject into our network.

  • In FY24, we undertook a strategic shift in our organisation’s emissions reduction strategy, by directing more of our shorter-term resources into broadening our emissions reductions and setting credible ambitious reduction targets. Offsetting does not form part of this shorter-term focus, but we may revisit its role in the future.

Empowering solar

Our target: to support distributed and renewable generation by enabling our customers' use of solar panels, batteries, and electric vehicles.

Our mahi: we successfully connected Kāpuni solar farm to our electricity network. Kāpuni is able to power more than 520 homes.

Learn more

The pillars of our work