Electricity Engineers’ Association Conference 20 June 2008 Hon. David Parker Minister of Energy

NZ Energy Strategy: Our vision A reliable and resilient system delivering New Zealand sustainable, low-emissions energy

Energy efficiency An untapped virtual source of energy Strategy covers whole of economy Long-term major savings possible

Emissions Trading Scheme Internationally favoured measure In line with others Includes every sector of economy – forestry, liquid fossil fuels, stationary energy/industrial processes, agriculture/waste/others Linked to Kyoto trading markets Gradual introduction

Renewable electricity target 90 per cent of electricity from renewable sources by 2025

Forecast electricity generation

Renewables future - economic sense New Build Generation Costs

Commerce Amendment Bill Simpler, more predictable regime for lines companies Time limits for CC decisions More appropriate disclosure regime for locally owned lines businesses Reduced compliance costs

EIRA Amendment Bill Ability of lines owners to sell output of generation made easier Scope of lines / supply ownership separation narrowed Definition of “renewable” generation broadened

Continuance of supply post 2013 Section 32 of Electricity Act to be amended Obligation to supply – lines or alternative generation Consumers and lines companies – joint focus on best solution for each area

Key actions for renewables National policy statements on - renewable electricity generation electricity transmission - to provide guidance for councils Call-in powers available

New technologies Need diverse mix of renewables Main increase over next decade will be wind and geothermal As island nation NZ has great potential for marine generation

Marine Energy Deployment Fund First grant – Crest Energy for Kaipara Harbour entrance project Will improve reliability of supply to local community Further funds available in Round 2

Electricity emissions reduction opportunities

Concluding comments