Energy policy : New Zealand

ENERGY POLICY

NEW ZEALAND

NAZRIZAM AB. WAHAB

G0926606

of

Overview of NZ

NZ Energy

NZ Energy Policies

Conclusion

Overview of New Zealand

Known as The Land of the Long White Cloud

Located at the south-west Pacific Ocean.

North Island & South Island –also a number of smaller islands

Land areas = 270 500 km2 in total. Total population = 4.33 million

people Very low population density Capital city = Wellington English and Ma–ori are the official

languages. Terrain = Highly varied, from

snowcapped mountains to lowland plains.

Climate = Temperate to subtropical.

OVERVIEW OF NEW ZEALAND

New Zealand’s Energy

CURRENT CONDITION

New Zealand has been blessed with many natural resources

NZ’S ENERGY RESOURCESTwo types of energy resources:1. Non-renewable

energy• Oil• Gas• Coal

2. Renewable energy• Hydro• Geothermal• Others

o Biogaso Windo Solaro Waveo Wood

ENERGY SUPPLY & DEMAND BALANCE, 2009

Source: Ministry of Economic Development, 2010

TOTAL PRIMARY ENERGY SUPPLY, 2009

Hydro11%

Geothermal16%

Others re-

new-able8%

Coal8%

Oil36%

Gas21%

Source: Ministry of Economic Development, 2010

TOTAL PRIMARY ENERGY SUPPLY 1974 - 2009

TOTAL CONSUMER ENERGY BY FUEL, 2009

Coal4%

Oil47%

Gas11%

Geo-thermal2%

Electricity26%

Others renewable10%

Source: Ministry of Economic Development, 2010

TOTAL CONSUMER ENERGY BY FUEL,1990 - 2009

TOTAL CONSUMER ENERGY BY SECTOR, 2009

Transport industry39%

Industrial34%

Residential13%

Commercial9%

Agriculture5%

Source: Ministry of Economic Development, 2010

TOTAL CONSUMER ENERGY BY SECTOR,1990 - 2009

NZ Energy’s Policies

NZ ENERGY POLICIES

NZ Energy policies

EECA

NZEECSNZES

NZ ENERGY STRATEGY (NZES) NZES sets the strategic direction of the energy

sector and the role energy will play in the New Zealand economy.

NZES structure:

Goal

Priorities

Areas of focus

• “MAKING THE MOST OF ITS ABUNDANT ENERGY POTENTIAL FOR THE BENEFIT OF ALL NEW ZEALANDERS”

GOAL

Priorities

Develop resources

Secure and affordable

energy

Efficient use

Environmental

responsibility

1. Develop petroleum and mineral fuel resources2. Develop renewable energy resources3. Embrace new energy technology

1. Competitive energy markets deliver value for money

2. Oil security and transport3. Reliable electricity supply

1. Better consumer information to inform energy choices2. Enhance business competitiveness through energy

efficiency3. An energy efficient transport system4. Warm, dry, energy efficient home

1. Best practice in environmental management for energy projects

2. Reduce energy-related greenhouse gas emissions

NEW ZEALAND ENERGY EFFICIENCY & CONSERVATION STRATEGY, NZEECS

NZ ENERGY EFFICIENCY & CONSERVATION STRATEGY (NZEECS)

Prepared under the Energy Efficiency and Conservation Act 2000 to promote energy efficiency, energy conservation and renewable energy in New Zealand.

It proposes Government's policies, objectives, and targets for the next five years (to 2015), and the means by which these will be achieved.

NZEECS targets and objectives provide a clear direction and rationale for future policy and action.

NZEECS OBJECTIVE AND TARGETS

• Transport

Sector

• More energy efficient transport system, with a greater diversity of fuels and renewable energy technologies.

Objective • By 2015 : 29 PJ of

savings• By 2015 : A 4%

improvement from 2008 levels in GJ/km travelled on land

Targets

• Business

Sector

• Enhanced business growth and competitiveness from energy productivity investment

Objective • By 2015: 21 PJ savings

By 2015: 14% improvement in the commercial and industrial sector energy intensity level (GJ/$1000 of GDP).By 2025: An additional 9.5 PJ of energy utilised for heat and/or fuel from biomass and/or geothermal sources, per year.

Targets

• Homes

Sector

• Warm, dry and energy efficient homes with improved air quality to avoid ill-health and lost productivity.

Objective • By 2015: 4 PJ of

savings.• By 2015: Historical

trends of increasing energy use by households levelling off.

Targets

• Products

Sector

• Greater business and consumer uptake of energy efficient products.

Objective • By 2015: Extend

MEPS, labelling and EnergyStar product coverage to remain in line with major trading partners.

Targets

• Electricity System

Sector

• An efficient, renewable electricity system supporting New Zealand's global competitiveness.

Objective • By 2025: 90%of

electricity will be generated from renewable sources, providing supply security is maintained.

Targets

• The Public Sector

Sector

• Greater value for money from the public sector through increased energy efficiency.

Objective • By 2015: 10%

reduction in energy use per full-time staff equivalent compared with a 2008/09 baseline.

Targets

ENERGY EFFICIENCY & CONSERVATION

AUTHORITY (EECA)

WHO…Organization set up by the NZ

Government to encourage, support and promote energy efficiency,

energy conservation, and the use of renewable sources of energy.

WHAT…Helps New Zealanders at home and

in business understand and overcome the barriers to being more

energy efficient and using more renewable energy.

WHAT EECA DO…..

Information and advice 

Help NZ understand how

they can use energy more

wisely, and see the benefits of

their actions, by providing

information and advice at home

and at work.

Business support

Work with individual

businesses to help them better

manage their energy use and become more productive and competitive.

Provide information and

advice for businesses of all

sizes and provide some

financial assistance to

businesses that meet specific

criteria.

Funding and

incentives

Provide some funding and

financial assistance to

help NZ homeowners,

business people and renewable

energy developers

invest in more efficient

products or systems, or

switch to renewable energy. The

upfront cost can be a barrier, even though

these projects pay for

themselves over time.

Standards and

ratings

Set and monitor MEPS for a range

of products.

Set the rules for energy rating

labels that show the relative

energy efficiency of different products.

Research and

monitoring

Undertake and invest in

research to give a sound

analytical basis and to monitor the results of EECA’s work programmes.

STANDARDS & RATINGS

HOW…Runs a number of work

programmes and funds to support and promote energy

efficiency, energy conservation, and the use of renewable sources of energy.

Programmes are delivered through partnerships, with the private sector, community groups, industry associations and central and local government. The programmes as below:

Efficient products

ENERGYWISE™ home

s

Home insulation Clean heat

Energy supply

Renewable energy

Solar water

heatingBusiness

Wood energy for business

Renewable transport

energyBiofuels Transport

Vehicle fuel

economy

Central and local

government

Information and

awareness

Research and

monitoring

EECA provides funding to make it easier for businesses and householders to choose energy efficiency and renewable energy. Currently funding offer for:

Funding

Home insulation and clean heating

Clean, low emission heating

Solar water heating

Energy saving technologies for

businesses

Energy audits for businesses

Loans for public sector

organisations

Grants to deploy marine energy

projects

Biodiesel grants scheme

Investigate options for distributed (smaller-scale)

renewable generation.

Conclusion

CONCLUSION

New Zealand's energy solution is not a simple one. 

The big issue is security of supply.  Solving the problem is a balancing act:

security versus price versus the environment. However, NZ have a number of different

options to help fill their energy gap over the next couple of decades. 

Unfortunately, each of them comes with its own set of very different pros and cons.

Energy Resources Pros Cons

Hydro Produces no greenhouse gases

Most of best sites already used or off-limits

Gas Gas-powered plants can run 24/7 - perfect for security of supply

Greenhouse gas emissions add to global warming - although much less so than coal

Coal Reliable and available for baseload generation to ensure security of supply

Produces greenhouse gases

Wind Non air-polluting Community acceptance - potential noise and visual issues

Geothermal Provides continuous generation - ideal for security of supply

Potential for land subsidence

Solar Clean, abundant energy source

Solar electricity generation using photovoltaics is expensive

Biomass Uses materials that would otherwise be wasted

Waste materials need to be close to generation site to be economical

Tidal/ wave action

Potentially suited to New Zealand conditions

Environmental and marine safety issues