NEW ZEALAND: New Zealand Energy Strategy 2011–2021 - Developing Our Energy Potential

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2011
Effective Start Year: 
2011
Effective End Year: 
2021
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Energy, Power, Industry, Transport, Multi-Sector, Other
Energy Types: 
All, Coal, Oil, Power, Gas, Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wave and Tidal, Wind, Other
Issued by: 
New Zealand Government - Ministry of Economic Development
Source: 
Ministry of Business, Innovation and Employment (MBIE)
File: 
New Zealand Energy Strategy 2011–2021
Overall Summary: 
The New Zealand Energy Strategy sets the strategic direction for the energy sector and the role energy will play in the New Zealand economy. The strategy focuses on four priorities to achieve that: diverse resource development; environmental responsibility; achieving efficient use of energy; and promoting energy security and affordability. None of these priorities is more important than the other.
Access
Energy access priorities: 
Areas of focus: Competitive energy markets; Reliable electricity supply. ---Affordable energy is [...] fundamentally important to people, at home and in business. The Government considers that secure and affordable energy is best achieved through competitive markets. In the longer term, investment in oil alternatives will boost transport energy security. An ongoing focus on the reliability of electricity is also needed to ensure we have robust electricity infrastructure in the 21st century.
Energy access action plan: 
Competition in energy supply [...] places downwards pressure on prices and incentivises efficient investment. The Government has an ongoing programme of ensuring energy markets continue to work effectively and competition is promoted.---[...] the Government is seeking to improve the quality of information on gas reserves and encourage gas exploration and development to offset the decline of the Maui field. New gas finds will help support our electricity network.--- Improving the efficiency of our fleets and transport networks will help reduce New Zealand’s exposure to international fuel price volatility and potential price rises.
Efficiency
EE priorities: 
Improving the efficiency of energy use is a priority because it is an ‘enabler’ rather than a goal in itself. It leads to a range of beneficial outcomes that support all the other priorities in this strategy, from economic growth to greenhouse gas reduction to energy security. The three sectors where significant improvements can be made to energy efficiency are transport, business, and homes. [...].---The Government’s goal is for New Zealand to make the most of its abundant energy potential, for the benefit of all New Zealanders.This will be achieved through the environmentally-responsible development and efficient use of the country’s diverse energy resources [...].---Enhance business competitiveness through energy efficiency.---An energy efficient transport system.---The Government is committed to improving home insulation and clean heating levels in existing homes.
EE targets: 
Targets: By 2016: An improvement in the commercial and industrial sector energy intensity level (GJ/$1000 of GDP).
EE action plans: 
For transport, the Government’s key focus will be on creating the most efficient mix of integrated modes and travel options for New Zealanders and our visitors. To do this the Government will continue to invest in: • Roads of National Significance [...] • A rail system that enables the efficient movement of freight and complements other modes of passenger and freight transport. • Reliable and more cost effective public transport systems [...] • Improvements to infrastructure for walking and cycling funded through the National Land Transport Fund.
EE standards for appliances: 
To inform consumer choices around energy products and services, the Government is committed to: • Providing energy efficiency labelling and standards for products in association with Australia.
EE labeling: 
To inform consumer choices around energy products and services, the Government is committed to: • Providing energy efficiency labelling and standards for products in association with Australia.
EE building standards: 
The Government encourages development and use of voluntary industry standards to rate building energy performance.---The Government is committed to improving home insulation and clean heating levels in existing homes.
EE public awareness/promotional programmes: 
To inform consumer choices around energy products and services, the Government is committed to:[...] Providing information on a range of energy saving, renewable energy and energy efficiency options to households and businesses, such as through programmes run by the Energy Efficiency and Conservation Authority.---The Government will continue to support energy efficiency initiatives for businesses with measures such as energy audits, support for energy efficient purchasing, grant and subsidy programmes, and building sector capacity and capability in energy management.
Renewable Energy
RE priorities: 
Develop renewable energy resources.---We are investigating ways to support the use and development of geothermal energy. The Government is also encouraging the marine energy industry as appropriate. Biomass is another resource that has considerable potential. The Government will encourage biomass-to-energy development, including through working with industry to support its bioenergy strategy.
RE targets: 
The Government retains the target that 90 percent of electricity generation be from renewable sources by 2025 (in an average hydrological year) providing this does not affect security of supply. --- By 2025: We will utilise up to 9.5 PJ per year of energy from woody biomass or direct use geothermal additional to that used in 2005.
RE action plans: 
The economic competitiveness of new renewable electricity generation will be enhanced by a price on carbon.
Environment
Energy environmental priorities: 
Best practice in environmental management for energy projects.---Reduce energy-related greenhouse gas emissions.---The Government’s goal is for New Zealand to make the most of its abundant energy potential, for the benefit of all New Zealanders. This will be achieved through the environmentally-responsible development and efficient use of the country’s diverse energy resources [...].---The Government will ensure regulatory settings maximise the return to New Zealanders while also promoting safety, preventing harm and requiring environmentally-responsible practices. [...].---The Government will continue to ensure the adverse environmental effects of the use of various forms of energy are monitored and addressed accordingly.---The Government has reviewed its environmental and safety regime to respond to concerns about marine oil spills. It is committed to ensuring all petroleum activities have rigorous environmental and safety controls.
Pollution control action plans: 
[G]iven New Zealand’s fossil fuel endowment, the Government will continue to participate in international carbon capture and storage research initiatives.
Carbon markets: 
We are committed to a price on carbon, and we look to minimise market distortions caused by subsidising particular energy sources.
Energy-water nexus: 
The Government will address issues relating to access to, or allocation of, natural resources to provide an optimal outcome for New Zealand. [...] The National Policy Statement for Freshwater Management has already recognised the value of water for electricity generation.
Cooperation in env.: 
[G]iven New Zealand’s fossil fuel endowment, the Government will continue to participate in international carbon capture and storage research initiatives.
Energy Supply and Infrastructure
Energy supply priorities: 
Using a wide range of energy resources will help make New Zealand more resilient to fluctuating commodity prices, leading to improved energy security [...].--- For the foreseeable future some fossil fuel generation will be required to support supply security.---Our immediate focus is on increasing exploration activity and on improving the knowledge of our petroleum basins through the Petroleum Action Plan. [...].---We will also develop a pathway to realise the potential of New Zealand’s gas hydrates endowment---[...] the Government is seeking to improve the quality of information on gas reserves and encourage gas exploration and development to offset the decline of the Maui field. New gas finds will help support our electricity network.
Infrastructure development priorities: 
An energy efficient transport system: For transport, the Government’s key focus will be on creating the most efficient mix of integrated modes and travel options for New Zealanders and our visitors. To do this the Government will continue to invest in: • Roads of National Significance [...] • A rail system that enables the efficient movement of freight and complements other modes of passenger and freight transport. • Reliable and more cost effective public transport systems [...] • Improvements to infrastructure for walking and cycling funded through the National Land Transport Fund.
Investment
Energy sector investment priorities: 
The Government will prioritise research funding to areas based on New Zealand’s resource strengths and unique characteristics, and where there is commercial potential. Government priorities for energy research, development, and deployment support are with bioenergy, marine, geothermal, petroleum, smart electricity network technologies and energy efficiency (at all levels of supply, infrastructure and demand). ---[T]he Government will continue to focus its attention on resource management issues that inappropriately affect investment in electricity infrastructure.---The Government’s approach is to ensure market incentives and the regulatory framework support further investment in appropriate renewable projects by removing unnecessary regulatory barriers. The Government will work with industry, local government and other stakeholders to identify and remove these barriers. ---The Government welcomes and expects to see considerably more investment in renewable electricity generation, particularly from geothermal and wind resources.--- Investing in data acquisition to improve resource knowledge and foster more investment, particularly in frontier resources.
Bidding and Tendering: 
Develop petroleum and mineral fuel resources: The Government will ensure good quality resource information is available to encourage competitive bidding for exploration of blocks of territory.
Governance
National policy structure: 
Developing a fit for purpose legislative framework for the petroleum sector
Coordination with regional energy associations: 
Opportunities for New Zealand will be enhanced by leveraging our ongoing international energy relationships including through the International Energy Agency, the Asia-Pacific Economic Cooperation (APEC) Energy Working Group, the East Asia Summit Energy Cooperation Task Force, and the International Partnership for Energy Development in Island Nations.
Technology
Clean energy technology priorities: 
The Government will prioritise research funding to areas based on New Zealand’s resource strengths and unique characteristics, and where there is commercial potential. Government priorities for energy research, development, and deployment support are with bioenergy, marine, geothermal, petroleum, smart electricity network technologies and energy efficiency (at all levels of supply, infrastructure and demand).---The Government’s approach is to ensure market incentives and the regulatory framework support further investment in appropriate renewable projects by removing unnecessary regulatory barriers. The Government will work with industry, local government and other stakeholders to identify and remove these barriers.
Clean energy technology deployment: 
Embrace new energy technologies: [...] The Government will continue to keep abreast of international developments and innovations.---Government priorities for energy research, development, and deployment support are with bioenergy, marine, geothermal, petroleum, smart electricity network technologies and energy efficiency (at all levels of supply, infrastructure and demand).---This year, the Government set up the Green Growth Advisory Group to evaluate and advise on opportunities for green growth to contribute to an increased rate of economic growth for New Zealand. The group will identify opportunities for smarter use of existing technologies and innovation, as well as greater development and adoption of new technologies (including clean technology) in our productive sectors.
R&D energy efficiency: 
The Government will continue to keep abreast of international developments and innovations. New Zealand is a member of international research partnerships seeking to develop new energy efficient technologies and to harness low emissions energy.
R&D pollution abatement: 
[G]iven New Zealand’s fossil fuel endowment, the Government will continue to participate in international carbon capture and storage research initiatives.
Technology collaboration with other member States: 
[G]iven New Zealand’s fossil fuel endowment, the Government will continue to participate in international carbon capture and storage research initiatives.---The Government will continue to keep abreast of international developments and innovations. New Zealand is a member of international research partnerships seeking to develop new energy efficient technologies and to harness low emissions energy.