Electricity, Energy and the Environment: Assessment Framework 2004

Report summary

This is the framework the PCE has developed 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.

The Commissioner is particularly keen to see improvements in energy efficiency and demand-side management, greater uptake of new generation technologies, renewables and ditributed generation, and the minimisation of greenhouse gases.

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 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.

Assessment framework 2004

The second part explains how the Commissioner is proposing to assess the environmental performance of New Zealand's electricity sector. It identifies quantitative and qualitative indicators and a number of complementary approaches.

The assessment will be based on the following environmental priorities:

1. Manage growth in electricity demand.
2. Promote the development and role of renewable technologies, in particular new and emerging technologies.
3. Promote the efficiency and security of the electricity system.
4. Ensure consistency with government policies on climate change and energy efficiency.
5. Minimise greenhouse gas emissions.
6. Avoid, remedy or mitigate new or existing impacts on the environment.

The assessment framework consists of three key components:

1. Assessments of the Electricity Commission.
2. Assessments of the wider electricity sector in the context of environmental sustainability, in particular climate change, energy efficiency and renewables.
3. Focused investigations of specific electricity related issues.