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1.1 Highlights – October 2007 to June 2008


First (Interim) Progress Report

[ Last Updated 19 September 2008 ]


Key achievements in the period from the launch of the Strategy (11 October 2007) to 30 June 20081:

In transport:

  • The domestic sea freight strategy Sea Change was launched and the freight industry.Seafreight Development Unit established to revitalise the domestic sea
  • Legislation to introduce a mandatory biofuels sales obligation is progressing through the Parliamentary process.
  • A work programme has been scoped to encourage early deployment of electric vehicles in New Zealand and an expert advisory group established (Vehicle Energy and Renewables Group).
  • The New Zealand Transport Strategy was updated and a Government Policy Statement to guide funding allocations for transport was developed.

In ensuring security of supply:

  • The new investment in the transmission grid needed to support new renewable generation in remote locations has been identified.
  • Ways to integrate wind generation into the electricity system have been identified.
  • Improvements to the design of the electricity market were released for comment following a major review – to ensure fair prices for consumers.
  • Guidelines for smart meters have been issued, so that the new technology benefits the consumer and the efficient operation of the electricity system.
  • A better accounting system for electricity flows has improved incentives to minimise electrical losses in the electricity system.
  • Government policy statements governing the electricity and gas sectors have been updated to align to the Strategy goals.

In encouraging more low emissions power and heat:

  • An Emissions Trading Scheme has been designed and is progressing through the Parliamentary process.
  • Proposed amendments to the Electricity Act 1992 to restrict new baseload fossil-fuel generation for 10 years are progressing through Parliament.
  • Guidance for councils on the importance of renewable electricity has been developed, to help resource consent decision-making. A draft National Policy Statement for Renewable Electricity Generation is expected to be released in August 2008.
  • The Minister for the Environment has 'called in' two resource consent applications for nationally significant renewable electricity developments and referred them to a one-step process to reduce decision-making timeframes.
  • Legislative reform to enable lines companies to invest in renewable generation is progressing through Parliament.

In promoting energy efficiency:

  • 11,047 homes were insulated through EECA programmes and 3,040 Housing NZ Corporation homes were retrofitted with insulation or heating improvements.
  • 2.2 million energy efficient light bulbs subsidised by the Electricity Commission were sold in the year to June 2008, resulting in estimated annual energy savings during 2007/08 of 173 GWh.
  • The Efficient Lighting Strategy was launched, a voluntary Home Energy Ratings Scheme was launched, minimum energy performance standards for an additional 13 product classes are being developed and new Energy Star labels were launched for computers, monitors and fridges.
  • 3,455 old fridges were retired and recycled in a pilot programme.
  • Building Code changes were introduced requiring higher insulation levels for homes, more energy efficient lighting in commercial buildings and providing a solar water heating standard.
  • The Energy Efficiency and Conservation Authority (EECA) reported energy savings of 1.8 PJ2 p.a. from its 'better products' programmes and savings of 1.3 PJ p.a. from its programmes with industry.
  • The Electricity Commission reported energy savings of 0.71 PJ p.a. as a result of its efficiency programmes with industry delivered in the year to 30 June 2008.

In fostering technology and innovation:

  • The Marine Energy Deployment Fund and Low Carbon Energy Technologies Fund were established and the first rounds allocated.
  • Energy research funding was boosted further by $32.5m over four years in the May 2008 Budget.
  • The EnergyScape project completed an assessment of New Zealand's natural energy resources and developed a model for evaluating new technologies.
  • The National Energy Research Institute improved links between energy researchers by holding conferences and creating a new web-based database.

In affordability and wellbeing:

  • More South Island electricity customers will have lower fixed daily charges once regulation changes, now developed, come into effect (proposed date: 1 April 2009).
  • A new project has been initiated (starting in July 2008, led by the Ministry of Social Development and EECA) to investigate how to define and understand household energy affordability.

There have been minor delays in some actions and one programme (the solar water heating programme) has experienced low uptake. The delays are noted in Appendix 1.

Major initiatives are presented in Part B and reports on all actions in the Strategy and NZEECS are listed in Appendix 1.

1 Note that where programmes have been running for the full 2007/08 year or where data is collected on an annual basis, full year figures have been reported rather than for the partial year from October 2007. Where processes are reported, the progress to 30 June 2008 is noted and additional milestones up to early August 2008 are also noted.

2 For an explanation of electrical units of measure such as PJ (petajoule), GWh (Gigawatt hours), MW (megawatts), refer to the glossary in the Ministry of Economic Development's Energy Data File, published in June 2008.


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