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Developing the New Zealand Energy Strategy

Developing the New Zealand Energy Strategy. IPS Roundtable Series on energy sustainability 4 August 2006 Stuart Calman. Why develop an energy strategy?. Respond to long term challenges of energy security and climate change

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Developing the New Zealand Energy Strategy

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  1. Developing the New Zealand Energy Strategy IPS Roundtable Series on energy sustainability 4 August 2006 Stuart Calman

  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

  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.

  4. Developing the NZES: scope • Build on the Sustainable Energy Programme of Action • Encompass core energy sectors • Integrate with climate change policy, NEECS 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

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

  6. LONG-TERM GOALS AND SCENARIOS • Reliable and resilient • Environmentally responsible • Fair and efficient prices STRATEGIC DIRECTION Low carbon and vibrant economy Stationary energy demand Stationary energy supply Transport (supply & demand) Energy innovation (cross sectors) POLICY • Potential • Targets and milestones Renewables Energy efficiency (industry, buildings etc) Demand side management Research priorities IMPLEMENTATION • Action plans • Instruments • Measurement Low carbon fossil Vehicle fleet & technology Industry development Conservation Energy security (fossil fuels, exploration) Fuels (bio, elec) Coordination & international links Demand side participation Oil security Generation and transmission Developing the NZES: process

  7. Developing the NZES: content • 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

  8. Developing the NZES: content • 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

  9. Stakeholder engagement • Two phases of opportunity for stakeholders’ input: • Phase 1: Developing the strategy: • NEECS 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 at www.med/nzes.govt.nz

  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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