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Renewable Energy in New Zealand Slide 2 Introduction NZs energy supply NZs renewable energy supply NZs renewable electricity supply NZs renewable energy policy China vs. NZs energy supply very different Population: China 1.3b, NZ 4m Real GDP: China NZ$3000b, NZ NZ$128b Annual energy production: China 58000 PJ, NZ 550PJ Annual electricity consumption: China 1800 Twh, NZ 36 TWh Slide 3 Total Primary Energy Supply Slide 4 1990 & 2004 Fuel Shares of Total Primary Energy Supply Slide 5 Total Energy Consumption by Fuel Type Slide 6 Renewable Primary Energy Supply Slide 7 Renewable Primary Energy Supply 1990 & 2004 Slide 8 Renewable Energy Consumption Slide 9 Renewable Energy Consumption 1990 & 2004 Slide 10 Net Electricity by Fuel Type Slide 11 Net Electricity 1990 & 2004 Slide 12 Total Electricity Generation Capacity Slide 13 Electricity Generation Capacity 1990 & 2005 Slide 14 Structure of the NZ electricity industry Slide 15 Electricity by Consumption Slide 16 Gross CO 2 by Sector Slide 17 1990 & 2004 Shares of Gross CO 2 Emissions by Sector Slide 18 Renewable Energy Policy Energy Efficiency and Conservation Act 2000 Four government agencies involved in renewable energy policy Ministry of Economic Development, Ministry for the Environment, Electricity Commission and EECA Governments overarching goal for energy To ensure the delivery of energy services to all classes of consumer in an efficient, fair, reliable, and sustainable manner Energy Policy Framework 2000 Seeks a Progressive transition to renewable sources of energy NEECS 2001 - Renewable energy target of an additional 30 PJ of consumer energy from renewable sources by 2012 - Achievement of the target should increase NZs supply of renewable energy by a further 22 per cent by 2012 - Target is expected to be met by contributions from renewable electricity, renewable heat and biofuels Slide 19 Progress towards the target Slide 20 Renewable Energy Policy Climate Change Policy (under review) - NZ is a signatory to the Kyoto Protocol - NZ is required to reduce its CO2 emissions to 1990 levels - Carbon tax (capped at $25 a tonne) no longer applies - Projects to reduce emissions programme - awarded carbon credits to renewable energy projects that are not quite economic programme under review Government Policy Statement on Electricity Governance (2004) Electricity industry is to ensure that electricity is delivered in an efficient, fair, reliable and environmentally sustainable manner to all classes of consumer Resource Management Act 1991 - NZs main environmental statute - Renewable energy projects need to obtain approval under the RMA (e.g. for land use, water takes) - RMA specifically recognizes the importance of renewable energy and energy efficiency New policy developments - Mandatory sales target for biofuels - National energy strategy - Replacement NEECS - New climate change policy Slide 21 Renewable Energy Market Development Renewable Technologies Slide 22 Aotearoa Wave & Tidal Energy Association AWATEA will promote, aid and foster a vibrant and profitable marine energy industry in New Zealand National association for representation of marine energy interests 1. Promote the marine energy industry 2. Increase utilization of marine energy 3. Central advocate for marine energy 4. Information exchange for marine energy 5. Meeting place for industry participants 6. Represent NZ marine energy industry internationally Slide 23 Photovoltaics in New Zealand New Zealand Photovoltaic Association Very small base Cottage industry struggling to achieve mainstream Receives limited government support Slide 24 Photovoltaics in New Zealand Grappling with net billing and connection NEECS feed in tariffs Research PV strategy under development Slide 25 Solar Water Heating in New Zealand Government support over recent years Generic marketing Quality assurance standards, training, monitoring Financial assistance scheme Industry association support Good growth from small base - 40% last year Slide 26 Solar Water Heating in New Zealand Price still number 1 barrier Complete system $5,000 to $6,000 installed NZ suppliers price takers Economy of scale difficult to achieve Traditional systems and running costs still more attractive System performance still to be measured Major project under way Slide 27 Solar Water Heating in New Zealand New home market attractive Building code provides an opportunity (Spain & some states of Australia) Strong government support Slide 28 www.eeca.govt.nz

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