Presentation: Developing the NZES Strategy

Slide 1: Developing the New Zealand Energy Strategy

IPS Roundtable Series on Energy Sustainability
4 August 2006
Stuart Calman

Slide 2: Why Develop an Energy Strategy?

• Respond to long term challenges of energy security and climate change
• Long lead times in energy sector if want to effectively manage risks and seize opportunities
• Sustainable energy discussion raised issues
• General agreement on need to articulate a clearer strategy for achieving sustainable energy objectives over both short and long term

Slide 3: What Will the NZES Aim to Do?

• Deliver a strategic view out to 2050;
• Set priorities to focus government and market actions;
• Promote a favourable investment climate;
• Address greenhouse gases in the energy sector;
• Enhance the contribution of R&D; and
• Galvanise stakeholder cooperation for the transition to a sustainable energy future.

Slide 4: Developing the NZES: Scope

• Build on the Sustainable Energy Programme of Action
• Encompass core energy sectors
• Integrate with climate change policy, NZES and fuel-related parts of National Transport Strategy
• Feed into assessment of relative R&D priorities and to evolving international relationships
• Support wider government strategies, e.g. economic transformation

Slide 5: Relationship to the NZES and Climate Change

• NZES and NZES are being developed concurrently
• NZES - long-term strategic direction for energy policy
• NZES - focus on implementation actions to enhance energy efficiency and encourage renewables, consistent with policies in NZES.
• NZES and NZES form the core of the energy sector work programme for climate change policy

Slide 6: Developing the NZES: Process

Slide 7: Developing the NZES: Content - 1

• Providing direction: long term goals and scenarios
• Long term objective e.g.
  • low carbon and secure energy system to support a vibrant economy and way of life
• Energy scenarios and their implications for policy priorities e.g.
  • what is the scope to reduce primary energy demand by 2030?
  • to what extent can dependency on oil be reduced by 2030?
  • to what extent can renewable energy meet primary energy demand by 2030?
• Challenging sector/thematic goals e.g. [X%] renewable stationary energy supply by 2030

Slide 8: Developing the NZES: Content - 2

• Policy issues, options and choices
  • renewable & low carbon energy supply
  • energy security & long term infrastructure
  • energy efficiency
  • Transport sector (fuels, vehicles & behaviour)
  • Research, innovation & international linkages
• Action plan

Slide 9: Stakeholder Engagement

• Two phases of opportunity for stakeholders' input:
• Phase 1: Developing the strategy:
  • NZES comment-seeking phase
  • providing feedback on TOR
  • workshop on future energy directions (23 August)
  • informal meetings with stakeholders
• Phase 2: Consultation on the draft strategy:
  • broad public consultation on the draft strategy
• Anyone interested in contributing is welcome to provide comments at any time via the Ministry of Economic Development's website

Slide 10: Concluding Comments

• Development of NZES is timely, given ongoing debate over effectiveness of existing policy settings and twin long-term challenges of climate change and energy security
• Views as to what the NZES should contain appear to vary widely
• Stakeholder input is essential

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