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Energy Policies of IEA Countries New Zealand

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Energy Policies of IEA Countries New Zealand Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/about/copyright.asp Energy Policies of IEA Countries New Zealand 2010 Review Energy Policies of IEA Countries New Zealand New Zealand’s strong commitment to liberalised energy markets has delivered a relatively high level of energy security and economic prosperity for consumers. Since the previous IEA review in 2006, the government has built on the success of existing policy mechanisms and implemented a number of far-reaching changes in the electricity sector and environmental policy. But progress in some sectors, such as energy efficiency, has not been as strong as anticipated. In mid-2010, the government commenced a review of the New Zealand Energy Strategy. The result is the publication of a new energy strategy, which establishes clear long-term policy priorities and energy-savings goals. Implementing these strategies will bring many new challenges, including attainment of the government’s medium-term energy-savings targets. New Zealand enjoys the advantage of a diverse and balanced portfolio of renewable-energy resources, which contribute over 70% of electricity output – the third highest portion in IEA member countries. This resource base has the potential to deliver greater volumes of energy and the government aspires to increase this proportion to 90% of electricity generation by 2025. Meeting this target will bring many benefits but also tough challenges, such as maintaining a robust National Grid. This review analyses the energy-policy challenges facing New Zealand and provides sectoral critiques and recommendations for further policy improvements. It is intended to help guide New Zealand towards a more sustainable energy future. -:HSTCQE=U^Y\W\: (61 2010 25 1P1) 978-92-64-09472-7 €75 Energy Policies of IEA Countries New Zealand 2010 Review July 2011 version Erratum for paragraph 6, p.49. Four sentences in the paragraph of the previous version of this publication were omitted. The paragraph should have read: Nonetheless, New Zealand’s energy efficiency policies and programmes face several challenges. Energy intensity has improved by approximately 1% per year between 1995 and 2007, not enough to offset the economy-wide increase in energy demand of approximately 2% each year. Energy performance varies across sectors. In 2008, transport accounted for 38% of energy consumption. From 1995 to 2007, energy consumption in the transport sector increased by 2.9% per year (freight by 3.9% per year and passenger transport by 2.1% per year). Growth in this sector, thus caused by the increasing number of vehicles on the road, appears to be the biggest energy-saving challenge. INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its mandate is two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and to advise member countries on sound energy policy. The IEA carries out a comprehensive programme of energy co-operation among 28 advanced economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency aims to: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain © OECD/IEA, 2010 Sweden International Energy Agency Switzerland 9 rue de la Fédération 75739 Paris Cedex 15, France Turkey United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available also participates in online at www.iea.org/about/copyright.asp the work of the IEA. Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ..................................................................... 7 EXECUTIVE SUMMARY ............................................................................................................................... 7 KEY RECOMMENDATIONS ....................................................................................................................... 11 PART I POLICY ANALYSIS 2. GENERAL ENERGY POLICY ............................................................................................................... 15 Country overview ..................................................................................................................................... 15 Energy supply and demand...................................................................................................................... 15 Energy administration and institutions ................................................................................................... 18 Energy policies ......................................................................................................................................... 19 Energy security ......................................................................................................................................... 21 Critique .................................................................................................................................................... 23 Key recommendations ............................................................................................................................. 25 3. CLIMATE CHANGE ........................................................................................................................... 27 Overview .................................................................................................................................................. 27 Greenhouse gas inventory ....................................................................................................................... 28 Policies and measures .............................................................................................................................. 31 International measures ............................................................................................................................ 34 Critique .................................................................................................................................................... 34 Key recommendations ............................................................................................................................. 37 4. ENERGY EFFICIENCY ........................................................................................................................ 39 Overview .................................................................................................................................................. 39 Institutions ............................................................................................................................................... 40 Policies and measures .............................................................................................................................. 41 Critique .................................................................................................................................................... 49 Key recommendations ............................................................................................................................. 51 G8 energy efficiency recommendations .................................................................................................. 51 PART II SECTOR ANALYSIS 5. RENEWABLE ENERGY ...................................................................................................................... 57 Overview .................................................................................................................................................. 57 Institutions ............................................................................................................................................... 57 Policies and support measures ................................................................................................................ 58 2010 3 OECD/IEA, © Table of contents Renewable electricity generation ............................................................................................................ 61 Critique ...................................................................................................................................................
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