Protecting our environment

Supporting New Zealand's decarbonisation:

• 11MW of forecast electricity was enabled through committed industrial decarbonisation projects (customers changing to a lower carbon energy source).

• We are currently unable to effectively report on MW of additional EV charger capacity on our network. A change to our Customer Delivery Service information forms will enable this to be reported on in FY27.

• An improvement in our data collection process meant that during FY26 we were able to report on the additional distributed renewable energy capacity for all connections, rather than just the large ones (as previously reported). During FY26, 81.19MW of additional distributed renewable energy capacity (maximum export capacity) was delivered directly into Powerco's electricity network. This was our largest year of additional capacity connected to date.

• No renewable gas (biomethane) was injected into the Powerco gas network to displace fossil gas.

Supporting New Zealand's decarbonisation: A FID for a biogas project was not achieved in FY26. This is still a focus for FY27.

Managing Powerco's operational and corporate climate footprint: We successfully reduced generator usage by approximately 30% - in a year where there was a significant uplift in weather related outages. During FY26, we produced and utilised a dashboard to pro-actively manage the time it was taking to complete faults where generators were required on our network. This looks at leading factors (the amount of generation in use on any day kVA) and lagging factors (such as cost per month by region and fuel type), to more effectively manage the time it's taking for projects to be completed. In addition, we are utilising Powerco's mobile hybrid Stand Alone Power Systems (MHSAPS), and from FY27, our underground cable asset strategy will start to proactively target known cable type issues, which will be carried out over the next 10 years.

Supporting New Zealand's decarbonisation: Baselining EV connection times was unable to be achieved during FY26 because of the transition to a new service delivery model. This is still a business priority and will be baselined FY27.

Managing Powerco's operational and corporate climate footprint: FY26 gas line losses emissions were 6.8% over the projection for our long-term goal of 25% reduction in gas line losses by 2030 from a FY25 base year. This would be on track excluding changes to the global warming potential for natural gas. In order to streamline our emissions reporting and to avoid confusion with targets, our long-term target for gas has been aligned with our overall Emissions Reduction Pathway.

Managing Powerco's operational and corporate climate footprint: Overall, FY26 total target emissions were 2.8% below the Emissions Reduction Pathway. Compared against our FY21 baseline year, emissions from our target sources have reduced by 26% or 22,260.60tCO2e. We remain on track to deliver our 57% reduction in 2030.

Supporting New Zealand's decarbonisation: We currently have no renewable gas in the Powerco gas network. Our target to have 20% of residential and small commercial gas volume renewable by 2030 remains relevant.

• 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.