New Zealand is responsible for approximately 78.8 million tonnes of CO2 equivalent emissions annually (2022 figure).
The built environment is responsible for around 15-20% of those emissions.
As we drive down emissions on the journey towards net-zero, our industry is maturing and starting to measure the whole life carbon of our buildings. Carbon in buildings can be quite a complex topic, but one area where there is clarity, is energy. Although, New Zealand’s high reliance on renewable electricity generation means that operational emissions are generally lower compared to buildings in many other countries, the amount of energy that we use in our buildings is high and needs to be reduced .*
*“Commercial buildings use 21 percent of New Zealand’s electricity, costing business $800 million every year. On average, building energy performance could be improved by 20-25 percent.” https://www.nabersnz.govt.nz/about-nabersnz/background/
An area we’d like to delve a little deeper into though is the systems we are using in our buildings. Globally, HVAC systems are responsible for ~40% of the built environment emissions. It is the responsibility of all of us, across the whole sector, to work together to drive down those emissions: from manufacturers of the products to the designers, installers and tenants of the buildings. There is also a very real need for existing technology to be better utilised and implemented to help reduce the performance gap.
Technical Solutions to the Performance Gap.
Let’s start at the end.
It’s impossible to reduce the performance gap without measuring the in-use performance.
Unfortunately, in New Zealand, commercial buildings do not have energy labels, we are one of the very few OECD* countries that don’t have this.
*The Organization for Economic Cooperation and Development is a unique forum where the governments of 37 democracies with market-based economies collaborate to develop policy standards to promote sustainable economic growth.
At product level we recognise the importance of clearly marking how efficient a product is so that consumers can make informed purchasing decisions. However, at building level, most prospective tenants are in the dark as to how that building will perform.
In the place of mandated energy labels, the commercial sector has looked to NABERS NZ (licensed to EECA and managed by NZGBC), which is a voluntary scheme to measure and rate building performance based on the actual resources usage on annual basis. The higher the certification level, the larger the uplift in both rental rates and sale prices compared to non-certified buildings the building owner can expect. According to a JLL (2024) report, buildings boasting the highest possible 6 star Green Star and NABERSNZ ratings command almost 10% premium on sales prices (9.8%), and 6.7% rental premium.
Design stage
In the commercial sector, occupant comfort is essential for productivity and tenant satisfaction. Proper design, commissioning, and advanced controls in HVAC systems ensure ideal indoor conditions without wasting energy. This balance is especially critical in New Zealand’s varied climate, where efficient heating and cooling are needed year-round.
Gathering as much data as possible early on is essential for accurately sizing HVAC systems. Properly sized systems ensure energy efficiency, consistent comfort, and equipment longevity, while reducing energy costs and maintenance needs.
Oversizing leads to short cycling and poor humidity control, while under-sizing causes constant operation, increasing energy bills and wear. Accurate load calculations prevent these issues.
Many of the products and services we offer can require specialist technical support and guidance, at Daikin we have a range of selection and design tools, as well as CFD analysis, to support your projects – please contact our team for more information.
Scheduling and energy management
Many BMS systems are deployed across commercial and non-domestic buildings, often they’re not utilised to their full potential. It’s important to ensure there is a proper handover provided to the users of the building on the control strategy, which includes schedules ensuring systems don’t continue to run unnecessarily outside of required hours.
If you are a building owner or real-estate company with high ESG (Environmental, Social and Governance) targets, or just looking to get a better handle on your building's energy performance, understanding individual tenant energy usage and identifying energy hot spots would be another key component to achieving your objectives.
Energy management systems with individual tenant billing can help with this, and Daikin offer a range of controls systems that have tenant monitoring and billing functions built in, that can help identify energy hot spots. Often heating systems are left running with windows open, or even heating and cooling units operating simultaneously in the same room, all resulting in energy-waste/ higher running costs. Our suite of touch screen control systems includes the iTouch Manager, Reiri for Office as well as 3rd party open protocol devices (such as BACNET, LonWorks). Proper control strategies will also utilise solutions such as system interlocks, which can address inefficiencies and limit multiple conflicting operations.
Remote Monitoring
Data is key to measure and understand building performance; we can utilise controls to measure the systems energy performance as well as identifying any hotspots or outliers where users may possibly be incorrectly using systems, and we can use positive engagement to encourage behaviour change. In the new era of AI, the next uptake for enhanced control, monitoring and predictive logic, would be cloud-based remote monitoring solutions providing real-time data, support from the product-experts (suppliers & maintenance teams), advanced analytics tools and more. It will help building owners identify cost-saving opportunities, increase the lifetime of the equipment and reduce the risk of unexpected issues.
Commissioning & Maintenance
It’s essential for the client and design team to agree on system operation from day one, passing clear instructions to contractors and installers. Systems should start as designed, with proper handover information to ensure schedules are set and operational.
Manufacturers should make systems easy to commission, with training for clients and tenants to maximise energy efficiency. Clear guidance on HVAC controls can improve energy management and align with energy-saving goals. Utilising more advanced settings and copy functions for commissioning via smartphones can help simplifying the process and speed up time on site without impacting performance.
It is the responsibility of manufacturers to make their systems as easy to commission as possible and provide tailored product training courses to the installers. Please, visit our training website to explore the courses available.
Reducing operational energy from HVAC systems and built environment in general is a clear way to lower carbon emissions and help us get towards net-zero. It will also massively help with the overall demand on our grid and required renewable energy supply.
To achieve this, it will also require regulatory improvements, a shift in public and industry attitudes, and significant investment in both new builds and retrofitting old structures.
Let’s work together towards a more energy-efficient future for New Zealand’s commercial sector!
We’ll be releasing a series of upcoming articles featuring in-depth analysis into our latest product specific solutions for this subject. Subscribe to stay updated!
Contributors to this article series include:
Ryan Philp - Sustainability Lead
Mariya Protopopova - Specified Solutions Account Manager
Brendon Dolan - Specified Solutions Account Manager