Energy Policies of IEA Countries: New Zealand 2010 Review

2010 Review of New Zealand's Energy Policies

Executive Summary and Key Recommendations

New Zealand has made significant strides in liberalizing its energy markets, leading to high levels of energy security and economic prosperity. However, progress in certain areas, such as energy efficiency, has been slower than anticipated. In mid-2010, the government initiated a review of the New Zealand Energy Strategy, resulting in a new strategy that sets clear long-term policy priorities and energy-saving goals.

Key Points:

• Energy Security: New Zealand’s energy security is bolstered by a diverse and balanced portfolio of renewable energy resources, contributing over 70% of electricity output, the third highest proportion among IEA member countries.
• Future Goals: The government aims to increase the share of renewable energy to 90% of electricity generation by 2025, which will bring both opportunities and challenges, particularly in maintaining a robust national grid.
• Challenges: Despite improvements in energy intensity, the economy-wide increase in energy demand remains a challenge. The transport sector, accounting for 38% of energy consumption, is the largest energy-saving challenge due to the growing number of vehicles on the road.

Policy Analysis

1. General Energy Policy

   • Country Overview: New Zealand’s energy market is characterized by liberalization and a focus on renewable energy.
   • Energy Supply and Demand: The country relies heavily on renewable energy sources, with a goal to increase this share.
   • Energy Administration and Institutions: The government has established relevant institutions to manage and promote energy policies.
   • Energy Policies: Policies are designed to enhance energy security and promote sustainable practices.
   • Energy Security: The government emphasizes ensuring reliable and abundant energy supplies, especially in the event of oil supply disruptions.

2. Climate Change

   • Overview: New Zealand has implemented various measures to address climate change.
   • Greenhouse Gas Inventory: The country maintains detailed records of its greenhouse gas emissions.
   • Policies and Measures: Both domestic and international measures are in place to reduce emissions.
   • Critique: There is room for improvement in the effectiveness and implementation of these measures.
   • Key Recommendations: Further efforts are needed to strengthen climate change policies and measures.

3. Energy Efficiency

   • Overview: Energy efficiency programs are in place, but challenges remain.
   • Institutions: Relevant institutions are responsible for implementing energy efficiency policies.
   • Policies and Measures: Various measures are being taken to improve energy efficiency.
   • Critique: Energy intensity improvements have been insufficient to offset overall energy demand growth.
   • Key Recommendations: More robust energy efficiency policies and programs are needed, particularly in the transport sector.

Sector Analysis

1. Renewable Energy
   • Overview: New Zealand has a strong foundation in renewable energy, particularly in electricity generation.
   • Institutions: Relevant institutions are in place to promote and manage renewable energy projects.
   • Policies and Support Measures: Government support measures are in place to encourage renewable energy adoption.
   • Renewable Electricity Generation: Detailed analysis of current and future renewable energy generation.
   • Critique: While progress has been made, there is scope for further improvement.
   • Key Recommendations: Continued investment in renewable energy projects and supportive policies.

This review aims to provide insights into the challenges and opportunities facing New Zealand’s energy sector, guiding the country toward a more sustainable and efficient energy future.