5. Renewable Energy
50. Encouraging the development of renewable energy resources is a key part of the Government's NZES for managing climate change and long-term energy security. A principle of the NZES is that for the foreseeable future it is preferable that all new electricity generation be renewable, except to the extent necessary to maintain security of supply. The Government has set a target for 90 per cent of electricity to be generated from renewable sources by 2025.
51. Investment co-ordination can be particularly problematic for renewable generation because such generation is often remote from existing load centres and major transmission lines, and individual renewable generation plant is typically small relative to the size of the regional demand.
52. The Government's objectives in relation to renewable electrical energy, are that:
- undue barriers to investment in renewables should be reduced or removed
- the efficient uptake of renewable generation should be promoted
- the national transmission grid should be planned and made available so as to facilitate the potential contribution of renewables to the electricity system
- the specification of the grid planning processes and approval criteria should allow grid upgrade plans to facilitate the efficient and timely development of renewable generation resources, taking into account the substantial difference in lead times for transmission and some generation investment.
Integration Issues
53. The Government expects the Commission to investigate the extent to which hydro and other generation sources can be integrated fully with intermittent wind generation in order to ensure that the maximum economic potential of wind generation can be achieved. This work should also include consideration of the changing role of older thermal generation plant. The Commission should recommend any Electricity Governance Rule changes that are necessary to achieve this.
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