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Time to spark a new direction for electricity

New Zealand needs some fresh thinking about energy so we can move away from last century's model of building more and more big electricity projects to meet our energy needs, says the Parliamentary Commissioner for the Environment (PCE) Dr Morgan Williams.

Dr Williams was speaking in Wellington at the launch of a PCE study that looks at what New Zealand might look like in 10, 25, and 50 years' time depending on the energy choices we make today. The study has been written to spark a national debate about our electricity and energy futures, he says.

"Major challenges in the energy sector mean that we need to make some tough decisions very soon, but there is no clear strategy to shape the direction we will take."

These challenges include:

• the run down of the Maui gas field, expected in 2007
• community resistance to more big electricity projects, such as large hydro dams, the proposed transmission line from Waikato to Auckland, and plans to use coal to fire up the Marsden B power station
• responding to climate change
• the coming peak in global oil production
• the rising cost of energy, and
• the relative inefficiency of much of our energy use.

Dr Williams said these challenges provide us with the opportunity to rethink where New Zealand's electricity system is going and to do things a lot smarter.

"One resource we have in infinite supply is our ingenuity. In energy, there are endless opportunities to innovate and to be creative, and we are already seeing small and medium-sized businesses developing some great ideas in the fields of energy efficiency and distributed energy systems."

Thinking about our electricity system in different ways also opens up tremendous possibilities for regional development, says Dr Williams. He noted that in Germany, 100,000 new jobs had been created in industries related to energy efficiency since environmental tax reforms began in 1999.

The PCE study, Future currents: Electricity scenarios for New Zealand 2005-2050 sketches two scenarios. One paints a 'business as usual' picture dominated by established thinking as more big power projects are built to maintain security of supply.

The other scenario looks at how we can "get more from less" by redesigning the way we use energy for our social and economic advantage. It emphasises small-scale projects close to where the energy will be used and has a strong focus on energy efficiency and smart designs.

Dr Williams says that rather than simply looking at how to generate more electricity from big power projects, we should examine more closely how we can get far more value from the electricity we generate now and from new sources in the future.

"The problems with leaky homes have made us aware of how water can seep into buildings that are badly built or designed, but most people are unaware of how much energy is 'leaking' out of our homes and businesses. We could be saving a lot of money and getting far more out of the electricity we already generate."

The study traces how the alternative scenarios could impact on the jobs and lifestyles of two 20-year-old characters during the course of their working lives. One is an Aucklander and the other an East Cape farmer, so that issues confronting both urban and rural New Zealand are addressed.

Although the study creates two fictional characters, the scenarios are underpinned by rigorous research and analysis. Future Currents is accompanied by a 42-page background technical report.

ENDS

For further information contact:
Dr J Morgan Williams
Telephone (04) 495 8356
morganw@pce.govt.nz

Project leader: Nick Potter
Telephone (04) 495 8351
nick.potter@pce.govt.nz

Click to see the report summary