Sustainable Technologies and Innovation
Objectives/Direction
Framework for Research and Development
Two broad and competing themes emerged in submissions on the preferred approach for Government support for research and development. A number of research organisations, business groups and local government favoured a broad approach to developing low emissions, energy efficient affordable technologies that refrained from supporting some technologies over others. Others preferred direct government support for specific technologies.
Amongst energy companies, there was a strong view that technologies should be placed on a level playing field and that Government should not be picking winners. With this in mind Government funding of R&D initiatives should be on a contestable tender basis with transparent criteria.
Some energy companies had a strong market focus. Several thought that innovations would naturally flow from correct price signals within the market. The government has a role in ensuring that an attractive macroeconomic environment exists to encourage the necessary investment.
The key message from the research/academic sector is that particular technology solutions should arise as a result of research and innovation within the sector, rather than from government "picking winners". There are risks of government selecting certain technologies for accelerated development in the absence of full information of their long-term benefits relative to other technologies. Technologies selected for accelerated development may not be those which could facilitate a step change in energy use.
The preferred approach is for the government to establish an environment that sets expectations for energy technologies and within which collaborative research and innovation is sufficiently resourced.
Other submitters supported the Government selecting priority areas for action. Comments included:
- renewable energy research needs special status with 100% government finance to worthy private sector projects
- wind turbine development in NZ should be aggressively supported
- research into wave and tidal power and offshore wind power generation is required
- solar photovoltaics and large scale solar power units had potential and should be supported
- geothermal energy has considerable potential through new techniques, e.g. ground source heat pumps, high dry rock technology for either heat or electricity
- the focus should be on the transport sector as this is the highest area of energy consumption
- focus on areas where New Zealand has a competitive advantage in technology e.g. agriculture
- cellulosic biofuel should be a priority for research and trial manufacture
Other submitters considered the focus should be on promoting and funding new sources of indigenous energy both fossil fuel and renewables and ways this energy can be harvested to minimise GHG emissions. Examples include carbon capture and storage for NZ lignite coals, biofuels extraction from forestry wastes and fuels grown from sewerage waste.
Taking a slightly different slant, another submitter said New Zealand R&D should be judged against the potential contribution not only to NZ but its wider economic and social needs. In table 6.1, they noted, there is no attempt to address areas where NZ could:
- have significant impact on the global problem of climate change through science
- engage in a commercially lucrative exporting of technology, even though there is little impact on our own energy needs.
Others suggested, in a similar vein, that there was too much focus in the NZES on being a fast adapter. The strategy should also recognise more opportunities for New Zealand led innovation.
Whole of life cycle approach
Some councils and research companies commented that a "whole life-cycle" approach should be taken. Support is needed from primary research through to actual commercialisation. Government needs to consider and have active involvement in the full R&D process from desktop research, through to commercialisation. Areas where activities are currently lacking are said to be in pre-commercialisation and demonstration of new energy technologies. Often new technologies need a "push" to get them to the development and commercialisation stage.
This view was disputed by others who favoured funding for research into technologies that had evolved sufficiently to suggest they may become commercially viable in the near-term. For example, carbon capture and storage technologies may be closer to commercial application than other emerging technologies such as biomass based transport fuels or marine energy.
Funding
Many submitters supported increased funding for research and development and extensions to criteria for funding eligibility. Comments and suggestions included:
- Increase R&D funding and recognise that New Zealand could be a technology adapter so some money needs to be directed to picking up overseas research and adapting this to NZ conditions. As such, this requires some funds to move outside pure R&D into more applied areas.
- A key factor to increasing expertise requires dramatically increased funding in useful energy research. Many scientists have moved from this area because of the lack of funding.
- Funding should be extended to commercialisation and evaluation and investigation of early adoption of overseas technologies.
- Greater access to public research funds for applied service providers is needed.
- The government establish a contestable process for obtaining high levels of funding for projects which would, deliver sustainable, innovative, cost effective and appropriate new energy efficiency technology or products, provide sound comparative information relating to the new technology or product and have gained the support of the industrial or commercial stakeholders to which the project relates.
- An energy company suggested that if there is allocation criteria, one of these could be based on the degree of emissions reduction that could result from the development of a particular technology.
Private and public sector leadership
There was some comment that the current research funding environment leads to competition, rather than collaboration, amongst researchers.
Collaboration between universities, Crown Research Institutes, and industry, and other technology partnerships, were recognised as central to a successful energy R & D strategy. There were benefits to be derived from breaking down of knowledge silos and promoting research networks. Clear governance arrangements and appropriate membership including those with a direct interest in the research were cited as important to success.
Technology partnerships are central to a successful energy strategy. They also depend upon government providing certainty of policy direction, a level playing field and flexibility for the methods to achieve these solutions. The Australian COAL21 plan is an example of a government /industry partnership to encourage the transition to low emission technology.
Major energy users were supportive of public/private technology proposals as technology transfer is the key to long-term emissions reductions, NZ cannot meet its objectives without the adoption of emerging technologies, and global adaptation relies on significant technological breakthroughs.
It was noted that in the research arena there is competition between public and private organisations for intellectual property. This can present a conflict of interest particularly when a private company seeks assistance from a public research organisation which may be competing in the same area. There could be a need to set some protocols to govern this competitive field.
Increasing capabilities and co-ordination
Sustainable energy research and education centre
Comment on the proposal to establish a new sustainable energy research centre was generally positive. There was recognition that coordination of NZ energy research through a central point was desirable and could assist in building strengths in energy research. Some considered it should not be limited to sustainable energy but act as a forum for discussion of energy research across the whole energy sector. Suggestions included:
- creation of a NZ Energy Research Institute (NZERI) seeded around one of the existing national centres of excellence
- supporting the University of Otago's proposed National Energy Research Institute
- establishment of a central research agency with major industry and crown agency representatives building on the current Pastoral and Greenhouse Gas Research Consortium model
- supporting the energy research alliance as a nucleus around which coherent energy research could develop.
Another suggestion for linking information and improving information flows was that Government agencies should arrange regular forums where representatives from various renewable energy fields can meet to discuss future innovation opportunities.
Research organisations emphasised the need for research and teaching programmes to be strongly linked to improve capabilities and develop skills.
Strengthening international linkages
It was recommended NZ needs to maintain strong international links to maximise uptake of technology that has been developed elsewhere.
There was support for:
- joining overseas renewable energy organisations such as the International Energy Agency (IEA) Ocean Energy Systems Implementing Agreement and rejoining the IEA wind energy agreement
- closely monitoring overseas tidal energy development
- monitoring and improving international linkages to enable fast adaptation of emerging technologies.
Accelerating innovation
Some submitters suggested the Government needs to encourage private sector involvement in energy-related R&D and uptake of emerging environmental technologies by way of tax incentives, capital grants and subsidies.
Marine Energy
There was qualified support for a fund for marine development from local government but concern that this alternative promising technology has been singled out over others and a suggestion that the contestable fund should be widened to cover all aspects of renewable energy production and distribution.
Submitters directly involved in marine research and development were in support. They noted that marine energy technologies, deployments, operations and maintenance are not so advanced overseas; it is unlikely that there will be one dominant design for wave and tidal energy devices and there are significant opportunities for intellectual property development in NZ, which could lead to a domestic and export market.
They advocate that the marine energy deployment fund should be inclusive of demonstration projects. Consideration also needs to be given to how to promote early commercial marine projects as they are unlikely to be competitive except in some niche applications.
It was suggested a marine energy centre should be established. The centre could establish trial development sites, offer certification facilities and a focus for research, not only into devices but also into their environmental impacts.
Other submitters opposed establishment of a marine energy centre as there are surplus test facilities in UK/Canada, it would require ongoing capital and overheads, there are minimal technologies to be tested and no site suitable for both tide and wave. Funding that was available in New Zealand should be diverted to encourage adoption of successful technologies here or to support overseas test facilities.
Another view was that the Marine Energy Deployment fund should be for deployment only and be larger to increase its credibility.
Some groups did not support the marine fund as it was not evident that the benefits of the funding were determined through a contestable process. Funding should be sought through the established MORST bidding process.
Other policy recommendations
Other recommendations for policy included:
- research into home energy use and issues such as "fuel poverty" being carried out by such institutions as the Otago Energy Research Centre needs to be monitored by relevant government agencies
- the resource consent process should be minimised for small and experimental projects
- a crown investment fund targeting equity positions in new technologies be established
- building capacity for long term energy systems modelling and scenario building
- a marine energy strategy be developed.
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