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TREVOR DAYA-WINTERBOTTOM UNIVERSITY OF WAIKATO 1 From the Mountains to the Sea: NZ renewable energy perspectives IUCN AEL Colloquium - Tarragona 2014.

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Presentation on theme: "TREVOR DAYA-WINTERBOTTOM UNIVERSITY OF WAIKATO 1 From the Mountains to the Sea: NZ renewable energy perspectives IUCN AEL Colloquium - Tarragona 2014."— Presentation transcript:

1 TREVOR DAYA-WINTERBOTTOM UNIVERSITY OF WAIKATO 1 From the Mountains to the Sea: NZ renewable energy perspectives IUCN AEL Colloquium - Tarragona 2014

2 New Zealand: an overview 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  2012 resource consents renewed for extra 25 years  NZ greenhouse gas emissions profile 2010  Energy sector responsible for 43% total emissions by sector IUCN AEL Colloquium - Tarragona

3 New Zealand: an overview Renewable energy makes up about one-third of primary energy supply in New Zealand  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 New Zealand is 3 rd after Norway in terms of the percentage of electricity generation from renewable energy IUCN AEL Colloquium - Tarragona

4 Energy security IUCN AEL Colloquium - Tarragona Barton et al Energy security: Managing risk in a dynamic legal and regulatory environment (2004) at 462  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

5 Regional Energy Strategy Waikato Regional Energy Strategy 2009 estimated that the Waikato region has the potential for:  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 IUCN AEL Colloquium - Tarragona

6 Hydro: allocation preference Waikato Regional Plan: Variation 6 Water Allocation  Proposed variation afforded protection to existing electricity generation (Waikato hydro scheme)  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  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 IUCN AEL Colloquium - Tarragona

7 Tidal and Wind Kaipara tidal power station – Northland  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  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 IUCN AEL Colloquium - Tarragona

8 RMA national policy statement National Policy Statement for Renewable Energy Generation 2011  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 IUCN AEL Colloquium - Tarragona

9 Strategic direction New Zealand Energy Strategy  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  An efficient renewable electricity system supporting New Zealand’s global competitiveness IUCN AEL Colloquium - Tarragona

10 RMA amendments IUCN AEL Colloquium - Tarragona Section 70A - climate change and rules relating to discharge of greenhouse gases  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  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

11 Buller Coal litigation IUCN AEL Colloquium - Tarragona 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

12 Renewable preference ? IUCN AEL Colloquium - Tarragona 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)

13 IUCN AEL Colloquium - Tarragona


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