Electricity, Energy and the Environment: Making the connections

Report summary

This discussion document is part of a framework the PCE is developing to assess the environmental performance of New Zealand's electricity sector. The purpose of the framework is:

to certify that energy services from electricity are provided in an environmentally sustainable manner through ongoing environmental performance assessments of New Zealand's electricity sector.

Commissioner's preface

Electricity is a pivotal part of life in the 21st century. Electricity and other forms of energy are essential for sustaining humans and our social and economic well-being.

Rising concerns about the effectiveness of New Zealand's electricity sector (in environmental, social and economic terms) led to the enactment of the Electricity Amendment Act 2001. This Act, in combination with the Environment Act 1986, empowered me to undertake ongoing environmental assessments of the sector. There are many major benefits that can potentially be gained from this process. Making the Connections and the Proposed Assessment Framework are the first contribution from my team and me towards supporting the electricity sector's part in a resource productivity and efficiency revolution.

Making the connections

The first part of the discussion document provides background information on the assessments and explains key concepts and terms. It gives an overview of the existing electricity sector and its impacts on environmental sustainability. Importantly, it explains key features that New Zealand's electricity sector needs to have for it to develop in a sustainable direction.

Key points are that:

• The Commissioner is required to examine the environmental performance of an Electricity Governance Organisation (the 'Electricity Commission').
• The Commissioner is also using his powers under the Environment Act 1986 to assess the environmental performance of the broader electricity sector.
• The PCE's framework will provide the foundation for future environmental assessments on an annual basis.
• Equal emphasis needs to be given to examining how electricity is used (the demand for energy services) and how it is delivered (the supply of electricity).