Transcript New Zealand renewable energy perspectives

From the Mountains to the Sea:
NZ renewable energy perspectives
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TREVOR DAYA-WINTERBOTTOM
UNIVERSITY OF WAIKATO
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New Zealand: an overview
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 New Zealand electricity generation in 2012
 Hydro electricity generation 53%
 Geothermal electricity generation 21%
 Wind electricity generation 5%
 Fossil fuels (coal and gas) electricity generation 27%
 Fossil fuels
 Huntly power station (1,200MW) in the Waikato region
accounts for 17% electricity generation
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2012 resource consents renewed for extra 25 years
NZ greenhouse gas emissions profile 2010
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Energy sector responsible for 43% total emissions by sector
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New Zealand: an overview
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 Renewable energy makes up about one-third of primary
energy supply in New Zealand
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Principally hydro and geothermal
In 2012 renewable resources contributed approximately 75% of total
electricity generation
Geothermal – 90% generated from volcanic plateau in the Waikato
region
 Tongariro power scheme (360MW) generates around 4% of New
Zealand’s electricity generating capacity
 Waikato hydro scheme (1,078MW) generates around 13% of New
Zealand's total electrical generating capacity
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 New Zealand is 3rd after Norway in terms of the
percentage of electricity generation from renewable
energy
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Energy security
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 Barton et al Energy security: Managing risk in a dynamic
legal and regulatory environment (2004) at 462
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Energy security depends on sufficient levels of investment in mineral
development, generation capacity, and infrastructure to meet demand as
it grows … In New Zealand, neither the scare of a dry winter for hydro
generation in 2001, nor the imminent depletion of the Maui field are
enough to trigger investment that would improve the energy security
situation. Market signals of scarcity do not seem to lead promptly to
investment that would raise security; there appears to be some inertia or
lag. Arguably, companies perceive risk differently …
 The total installed electricity generation capacity in New
Zealand as of 2012 was approximately 9,800MW, plus
electricity plants currently under construction or in the
consenting process with extra capacity totalling over 5,000
MW
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Regional Energy Strategy
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 Waikato Regional Energy Strategy 2009 estimated
that the Waikato region has the potential for:
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Another 520 MW of geothermal electricity generation,
compared with existing capacity of about 380 MW, plus a large
potential for more direct use of geothermal heat
Approximately 500 MW of wind capacity, depending on the
degree of acceptance of adverse effects
Remaining hydro potential of about 100 MW, in mini, small,
and medium scale projects, compared to the existing installed
capacity of almost 1,400 MW
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Hydro: allocation preference
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 Waikato Regional Plan: Variation 6 Water Allocation
 Proposed variation afforded protection to existing electricity generation
(Waikato hydro scheme)
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Fixed primary allocable flow (3.6% of Q5) on basis of existing takes with
provision for 25,000ha future dairy expansion
Exceeding the primary allocable flow was a non-complying activity
Environment Court on appeal found the simplistic debate: dairy v
electricity, was too narrow
Court acknowledged
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Importance of electricity to New Zealand, and strong policy direction
emphasizing importance of renewable energy and effects of climate change
(e.g. NPS on Renewable Energy 2011)
But locking up entire variable flow above 3.6% of Q5 would not be an efficient
use of resources, and appropriate balance would be struck by increasing
primary allocable flow to 5% of Q5
 Carter Holt Harvey Ltd and others v Waikato Regional
Council [2011] EnvC 380
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Tidal and Wind
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 Kaipara tidal power station – Northland
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Turbines placed 30m deep along 10km stretch of main channel
Environment Court on appeal granted resource consent (2011) for
(200MW) 200 turbines (after a 5 year consenting period) subject to
adaptive management conditions requiring staged development and
monitoring
 Project Hayes
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Lammermoor Range - Otago
Largest (630MW) proposed wind farm in southern hemisphere
Further appeal to High Court on questions of law remitted the
applications to the Environment Court for redetermination
Resource consent applications withdrawn for commercial reasons in
2012 after a 6 year consenting period
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RMA national policy statement
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 National Policy Statement for Renewable Energy
Generation 2011
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Recognises the significance of renewable energy generation
and supports increases in generation to meet or exceed the
Government’s target for renewable energy generation
Requires local authorities to incorporate provisions for
renewable energy generation activities in policy statements
and plans
Policy statement and plan changes to be notified within 24
months
Progress on implementing the NPS (May 2012) 73%of local
authorities responded to survey confirming action taken
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Strategic direction
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 New Zealand Energy Strategy 2011-2021
 Non-renewable energy will continue to be an important part of
the global energy mix for the foreseeable future
 Renewable energy sources will be an increasingly important
part of the global energy mix
 90% target for renewable electricity generation retained
“providing this does not affect security of supply”
 New Zealand Energy Efficiency and Conservation
Strategy 2011-2016
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An efficient renewable electricity system supporting New
Zealand’s global competitiveness
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RMA amendments
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 Section 70A - climate change and rules relating to
discharge of greenhouse gases
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Must not have regard to adverse effects of discharge on climate
change i.e. no renewable preference, but may have regard to
positive effects from renewable energy
 Section 104E – applications relating to discharge of
greenhouse gases
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Must not have regard to adverse effects of discharge on climate
change i.e. no renewable preference, but may have regard to
positive effects from renewable energy
 Inserted by Resource Management (Energy and
Climate Change) Amendment Act 2004
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Buller Coal litigation
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 West Coast ENT v Buller Coal [2013] NZSC 87
 The majority of the Supreme Court considered that even if climate
change could be taken into account, the effects were too indirect
 The climate change effects of burning coal were irrelevant to the
ancillary mining applications sought by Buller Coal
 The eventual burning of coal overseas was not closely associated with the
construction of a road (to serve the mine) on the West Coast
 The effects of burning coal were also thought to be to be too intangible
 Buller Coal aimed to produce coal to meet an existing market
 If the company did not supply coal, overseas manufacturers will
presumably obtain coal from other suppliers
 Whatever happens in New Zealand, those manufacturers would continue
to emit greenhouse gases
 It would be difficult and probably impossible to show that the burning of
coal from West Coast mines would have any perceptible effect on global
climate change
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Renewable preference ?
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 Government policy
 Review emissions trading scheme in Climate Change Response
Act 2002
 Electricity (Renewable Preference) Repeal Act 2008
Repealed renewable preference in Part 6A of the Electricity Act
1992 which introduced a 10 year restriction on new fossil fuel
electricity generation capacity (22 December 2008)
 Inserted by Electricity (Renewable Preference) Amendment Act
2008 (26 September 2008)
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