1. Distributed Small-Scale Wind in New Zealand: Advantages, Barriers and Policy Support Instruments Martin Barry 17 th July, 2007

2. Overview Definition Aim & Method Key Issues Facing the Industry SSW Internationally & New Zealand –Advantages Key Findings

3. Definition Distributed Small-Scale Wind (SSW): A wind project with 3 or less utility-scale turbines connected to the local lines network Typical project size between 0.5 – 5 MW

4. Aim To establish whether distributed, SSW in NZ is worthy of public policy support and if so, determine the most effective policy instruments to promote its uptake.

5. Method International review: Journal articles, international wind energy associations, govt. publications, Wind Power Monthly magazine, GWEC New Zealand –Interviews with 22 energy industry stakeholders –Rural mail survey MastertonNew PlymouthBoth Regions No. residences8617591620 No. responses230108338 Response rate (%)26.7%14.2%20.9%

6. Method Rural Survey Questions 1. Do you support/oppose wind power as a means of generating electricity in New Zealand? 1 2 3 4 5 Strongly support Support Indifferent Oppose Strongly oppose

7. Method 2. Please imagine a new small-scale (2 turbine) wind farm placed in your district. How would you view the impact of such a wind farm? 1 2 3 4 5 Very positive Positive Neutral Fairly negative Negative Rural Survey Questions

8. Method 3. Please imagine a new small-scale (14 turbine) wind farm placed in your district. How would you view the impact of such a wind farm? 1 2 3 4 5 Very positive Positive Neutral Fairly negative Negative Rural Survey Questions

9. Method 4. Is the idea of installing a wind turbine on your land appealing to you? 1 2 3 4 5 Very interested Possibly interested Not sure Prob not interested Definitely not interested Rural Survey Questions

10. Method 5. Is the idea of installing a wind turbine on your land appealing to you? If government support was offered (to ensure the ROI is comparable with other investments. 1 2 3 4 5 Very interested Possibly interested Not sure Prob not interested Definitely not interested Rural Survey Questions A survey of this type has not yet been done in New Zealand

11. Key Issues NZ wind industry is failing to capitalise on the world- class wind resource it has available

12. Growth Rate Behind OECD average

13. Intermittent Growth Rate

14. Key Issues Trend toward large-scale (local opposition) Limited flow of investment Limited manufacturing capacity High geographic concentration NZ wind industry has adopted 4 characteristics that are limiting its future potential growth: There is arguably a need to reassess the way the industry is developing

15. Key Issues Trend toward large-scale (local opposition) Limited flow of investment Limited manufacturing capacity High geographic concentration NZ wind industry has adopted 4 characteristics that are limiting its future potential growth: There is arguably a need to reassess the way the industry is developing

16. Trend toward large-scale NZ wind developers favour the ‘big is better’ approach 98% of installed capacity comes from farms with 15 or more turbines Leading to increased local opposition & lengthening consent processes –E.g. Project West Wind delayed more than 15 months –Also Project Hayes, Awhitu, Tararua 3, Te Waka Ranges Social acceptance is a key limiting factor of wind’s potential growth, e.g. UK

17. 98% of total generating capacity being owned by only three developers –Meridian & Trustpower also investing in Australia c.f. –Ireland: More than 40 investors –Denmark: More than 150,000 households Limited flow of investment

18. Advantages of SSW Increased local public acceptance Facilitates community ownership Supports local manufacturing Potential for distributed generation benefits Utilises small high-wind sites

19. Advantages of SSW 1. Increased local public acceptance - 80% positive about SSW in local area - 50% positive about a large wind farm (14+ turbines)

20. Advantages of SSW 1. Increased local public acceptance Significantly reduced NIMBY effect

21. Method Rural Survey Questions 1. Do you support/oppose wind power as a means of generating electricity in New Zealand? 1 2 3 4 5 Strongly support Support Indifferent Oppose Strongly oppose

22. Advantages of SSW 1. Increased local public acceptance Significantly reduced NIMBY effect Attitude toward large-scale wind farm Attitude toward SSW n = 302 23% 3.3%

23. Advantages of SSW 1. Increased local public acceptance ‘Big is better’ is possibly creating an anti-wind sentiment A spread of turbine clusters throughout NZ will give people a chance to familiarise themselves with wind on a scale that they find more acceptable and less intrusive

24. 2. Facilitates community ownership Widespread throughout Germany, Denmark, the Netherlands & Sweden Advantages of SSW

25. 2. Facilitates community ownership Proven to increase local public acceptance: Greater tolerance of effects Removes hostility toward large, commercial developers Alleviates tensions between local and national interest A new source of capital: Greater investment pool Increases competition in generation Increases geographic diversity of wind capacity NZ Context

26. Advantages of SSW 2. Facilitates community ownership Involves farmers in wind: Utilise NZ’s vast rural potential for electricity generation Opportunity for farming sector to partially offset emissions Reduce the need for intensifying land use Has demonstration value for the public: Improve understanding of the link between energy and climate Increase awareness of energy conservation NZ Context

27. Advantages of SSW 66% interested in owning a turbine on their land 74.7% interested if government support is offered Survey found that rural landowners have a high degree of interest NZ Context

28. Not Covered Today Disadvantages Barriers Policy Instruments

29. Key Findings Source: (BMU, 2006) SSW has the potential to alleviate issues in the wind industry & the wider energy sector Developing SSW would likely provide faster industry growth Faster consent processes More investors Greater number of suitable sites (cf. large wind farms)

30. Key Findings Source: (BMU, 2006) People are significantly more positive about SSW being developed in their local area The NIMBY effect is significantly reduced with SSW SSW should not be developed instead of large-scale wind farms, but rather alongside them Rural landowners in NZ are interested in community ownership

31. Thank you Thesis can be downloaded from http://hdl.handle.net/10063/87 http://hdl.handle.net/10063/87