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• EDF September 2006
• A. Energy Overview

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New Zealand's total primary energy supply declined 0.2%, from 742 PJ in 2004 to 740 PJ in 2005. This was due to a decrease in the primary energy supply of waste heat (48%), hydro (14%) and gas (7%). The primary energy supply of coal, net indigenous oil, other renewables, imported oil and oil products, and geothermal increased by 19%, 8%, 7%, 2% and 1%, respectively. Annual per capita end use of total energy was 120 GJ (the equivalent of about 20 barrels or 3,200 litres of oil). New Zealand's total consumer energy was dominated by domestic transport, which accounted for 211 PJ or 43% of total consumer energy.

Statistics in this overview are in gross petajoules (PJ) and relate to the 2005 calendar year unless otherwise specified. For a full description of terms used, see the Glossary.

A.1 Energy Flows

Energy flows through the New Zealand economy from supply to end use. In the process, some energy is transformed into another type (such as from coal to electricity). These energy flows are displayed in a graph on page 6 and tabulated as an energy balance in Table A.1. Note that international transport and non-energy use are included on the demand side of the figure to make the graph simpler, but by statistical convention they are on the supply side of the table.

Total primary energy supply, energy transformation and consumer energy demand are discussed in detail in this overview, followed by sections on energy greenhouse gas emissions and the energy supply and demand outlook to 2030.

This table summarises the detailed energy balances presented in Table B.2i on page 30.

A.2 Primary Energy Supply

Total Primary Energy Supply (TPES) is the amount of energy available for use in New Zealand for energy transformation and end use. It includes energy in its original form: coal as it is mined, indigenous oil and natural gas as they are extracted from wells, crude oil and oil products as they are imported, and renewable fuels as used for electricity generation. Geothermal is accounted for on the basis of its use as an input to electricity generation (assuming 10% efficiency from 1974 to 1999, and 15% efficiency from 2000) including cogeneration, plus an estimate of losses, own use and geothermal used directly as a heat source. TPES includes imports but not exports, and makes allowance for any stock change. By convention, TPES excludes fuels used for international transport.

Note: R = Revised figures.

Chart A.2a: Total Primary Energy Supply

Table A.2 and Chart A.2a show New Zealand's TPES for 1974 to 2005.

TPES was 740 PJ in 2005, up 89% on the 392 PJ in 1974. Net indigenous oil supply and imported oil and oil products (for definition of terms see Glossary, Section L) dominate TPES, accounting for 281 PJ of the total of 740 PJ supplied in 2005. Table A.2 shows that between 2004 and 2005, primary energy supply of net indigenous oil increased by 8% (from 18 PJ to 19 PJ). Coal rose by 19% (from 82 PJ to 97 PJ), other renewables by 7% (from 44 PJ to 47 PJ), imported oil and oil products by 2% (from 80 PJ to 81 PJ). Hydro dropped by 14% (from 98 PJ to 84 PJ), and gas by 7% (from 161 PJ to 149 PJ).

Chart A.2b: Total Primary Energy Supply Shares 2005

Chart A.2b shows New Zealand's TPES shares for 2005, TPES decreased by 0.2% (from 742 PJ to 740 PJ). In 2005, oil provided 281 PJ (38%), gas 149 PJ (20%), coal 97 PJ (13%), hydro 84 PJ (11%), geothermal 81 PJ (11%), other renewables 47 PJ (6%) and waste heat 1 PJ (0.2%) of TPES. In total, fossil fuels contributed 527 PJ, or 71%, and renewables 213 PJ, or 19%.

A.3 Energy Transformation

New Zealand's energy transformation industry includes petroleum refining, petrochemicals and electricity generation. The main feedstocks of New Zealand's only oil refinery are imported crude, blendstock and indigenous crude and condensate. In 2005, 94% of refinery input was from imported crude and refinery feedstocks, and the other 6% was from indigenous crude and condensate.

Total petrochemicals consumption in 2005 was 20 PJ, down 60% on the 51 PJ consumed in 2004. The reduction was due to restraints in the supply of gas, and the closure of Methanex's Motonui plant. Of the natural gas extracted in New Zealand in 2005, 13% was used for petrochemicals to produce chemical methanol and ammonia/urea, compared with 32% in 2004.

In 2005, 55% of the total input into electricity generation, including cogeneration, was from renewable resources (hydro contributed 29%, geothermal contributed 22% and other renewables contributed 4%), 27% was from gas, 18% was from coal and 0.4% was from waste heat. Of the total renewable energy input, hydro contributed 53%, geothermal contributed 41%, with other renewables, such as wind, biogas and wood, making up the balance. Overall, energy transformation in 2005 was about 10% higher than in 2004, mainly due to an increase in total thermal fuel required for electricity generation.

A.4 Consumer Energy Demand

Consumer energy is energy used by final consumers. It excludes energy used for lost in transformation in bringing the energy to consumers. Natural gas, for example, is a source of primary energy. Some natural gas is transformed into electricity, and some is used or lost in the process of transmitting and distributing electricity to consumers.

The total consumer energy by fuel from 1995 to 2005 is presented in Table A.4a. Chart A.4a illustrates the total consumer energy by fuel for 2005. Total consumer energy (observed) increased by 0.3% to 494 PJ in 2005, compared with 492 PJ in 2004. The most significant percentage increase was the 2.9% rise in gas. Other renewables was up 2.3%. New data on the other renewables have been used for 2004, based on research carried out by BRANZ (see Section N: Data Sources). Geothermal direct use was up 1.4%. Oil was up 0.6%.

Oil consumption comprises around 250 PJ (51%), electricity 132 PJ (27%), gas 45 PJ (9%) and coal 21 PJ (4%), while other renewables such as biogas, wood and solar made up 36 PJ (7%) with geothermal direct use of 10 PJ (2%).

Total consumer energy by sector from 1995 to 2005 is presented in Table A.4b, and the shares in 2005 are illustrated in Chart A.4c. Domestic transport consumption (excluding international transport) accounts for the largest share, which is 43% of total consumer energy. Compared with 2004, total consumer energy use in the agriculture sector increased by 6.4% (from 20 PJ to 21 PJ), 2.2% (from 143 PJ to 146 PJ0 in the industrial sector and 0.8% (from 64 PJ to 65 PJ) in the residential sector. Total consumer energy use by the commercial sector fell 3.3% (from 52 PJ to 51 PJ), and the domestic transport sector decreased by 0.8% (from 213 PJ to 211 PJ).

Chart A.4a: Total Consumer Energy by Fuel 2005

Totals may not add up due to rounding.

Chart A.4b: Total Consumer Energy Fuel Shares from 1974 to 2005 Calendar Years

Note: R = Revised figures.

Note: R = Revised figures.

Note: R = Revised figures.

Chart A.4c: Total Consumer Energy by Sector 2005

Table A.4c shows total renewable consumer energy for 1995 to 2005. Total renewable consumer energy was 132 PJ in 2005, down 7.4% on the 142 PJ consumed in 2004. During 2005, renewable electricity contributed 84 PJ, or about 66% of total electricity consumption.

Chart A.4d: Total Renewable Consumer Energy 2005

A.5 Energy Greenhouse Gas Emissions^20,21

Carbon dioxide equivalent (CO₂-e) emissions from fuel combustion in the energy sector were about 31 million tonnes in 2005. The energy sector contributed aroung 90% of New Zealand's national gross human-made CO₂ emissions, with the rest coming from industrial processes. Chart A.5 shows New Zealand energy CO₂ equivalent emissions by source in 2005, excluding international transport. Emissions from the domestic transport sector account for 14,208 kt CO₂-e (46.1%), thermal electricity generation 7,148 kt CO₂-e (23.2%), the industry sector 4,935 kt CO₂-e (16.0%), the other sectors 3,443 kt CO₂-e (11.2%), and the other energy transformation industries 1,098 kt CO₂-e (3.5%).

It is important to note that in New Zealand the largest source of greenhouse gas emissions is agriculture. On a CO₂ equivalence basis, agriculture accounted for 49% of total national emissions in 2004, followed by the energy sector (43%), industrial processes (6%) and waste (2%).

Chart A.5: Energy CO₂ Equivalent Emissions Sectoral Share

A.6 Energy Outlook

In August 2006, the Energy Information and Modelling group of MED released New Zealand's Energy Outlook to 2030. This publication is designed to be a starting point for anyone wanting to become more informed about the energy choices New Zealand faces. In addition to projections, it provides essential background on every form of commercial energy, on each category of demand, and on the relationship of energy to climate change. There are many links to primary information sources for those who wish to dig deeper.

The Energy Outlook gives 25-year projections of New Zealand's energy supply, demand, prices and greenhouse gas emissions under "business as usual" assumptions. It also presents 11 sensitivity cases, selected for their ability to inform and educate readers on how New Zealand's energy system might respond to a wide range of hypothetical changes in the business environment. A concluding chapter examines two scenarios for achieving an energy system for New Zealand that is secure, affordable and environmentally responsible.

The publication can be downloaded free at the MED website New Zealand's Energy Outlook or a hardcopy can be purchased on-line.