Genesis Energy says it will run a trial with 10,000 residential customers to see whether altering the time of their hot water heating will reduce power bills and relieve strain on the national power grid at peak times. 

The trial is the start of an energy flexibility programme that will be rolled out over the next few years, Genesis said. 

NZX-listed Genesis has partnered with Australian technology company and metering business Bluecurrent to remotely control the hot water settings of customers throughout New Zealand over the next 12 months. 

Genesis’ chief retail officer Stephen England-Hall said water heating accounted for about 30% of an average household’s energy use. 

“Around 60% of customers told us through a survey that they would like our help in managing their water heating to maximise efficiency and savings,” he said. 

Adjusting the time when water was heated would reduce strain on the national grid at peak times – usually mornings and evenings, especially in winter. 

“Demand for electricity is increasing as we transition away from gas for heating and cooking, and more people replace petrol vehicles with EVs,” England-Hall said. 

“That’s a good thing as New Zealand heads toward the target of being net-zero by 2050, but it also places more demand on the grid.” 

Between 80% and 95% of New Zealand’s electricity was renewable on any given day, but when demand outstripped supply from renewable sources such as hydro schemes and wind farms, coal and gas may be used to fill the gap. 

Reducing electricity demand at peak times could increase the proportion of renewable electricity used for supply. 

Bluecurrent chief executive Neil Williams said enabling energy load shifting could help achieve a smooth energy transition. 

Genesis Energy’s power generation assets included the coal and gas-fired Huntly Power Station and hydro stations in the central North Island and South Island. 

Last month, the company said a “challenging operating environment” drove its earnings sharply lower over the June year. 

The power generator and retailer’s net profit fell to $131.1 million, down by 33% from the previous year. 

The company’s earnings before interest, tax, depreciation, amortisation and financial instruments came to $407.2m, down 22% from the previous year’s Ebitdaf of $523.5m.