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Purpose of a New Zealand Energy Strategy


Terms of Reference

Ministry of Economic Development
[ Last Updated 11 July 2006 ]


9. A New Zealand Energy Strategy is needed to provide government leadership for the energy sector to respond to long-term challenges of energy security and climate change.1 The energy options and environmental constraints we face in the years ahead make for complex decision-making. Nonetheless, the long lead times for making significant changes in the production and use of energy mean that concerted action must be taken soon to effectively manage risks and seize opportunities. Decisions made, or avoided, in the next few years will have effects for decades.

10. To assist forward looking investors the strategy will need to account for key challenges and set the direction for the future evolution of New Zealand's energy sector. In doing so the strategy will establish long-term policy intentions and guiding principles for decisions about the various energy options. This will help identify key areas where investment is needed and also increase the coordination of actions made across the energy sector. In this way the strategy will provide consistent guidance for energy decisions over time and the cumulative impact of these will facilitate the transition to a more sustainable energy future.


1 Energy security in this context encompasses tighter supply/demand balances such as peak oil and gas supply, potential for oil supply disruptions, dry hydro years, and lack of sufficient investment in energy infrastructure.



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