1. Developing the New Zealand Energy Strategy IPS Roundtable Series on energy sustainability 4 August 2006 Stuart Calman

2. Why develop an energy strategy? Respond to long term challenges of energy security and climate change Long lead times in energy sector if want to effectively manage risks and seize opportunities Sustainable energy discussion raised issues General agreement on need to articulate a clearer strategy for achieving sustainable energy objectives over both short and long term

3. What will the NZES aim to do? Deliver a strategic view out to 2050; Set priorities to focus government and market actions; Promote a favourable investment climate; Address greenhouse gases in the energy sector; Enhance the contribution of R&D; and Galvanise stakeholder cooperation for the transition to a sustainable energy future.

4. Developing the NZES: scope Build on the Sustainable Energy Programme of Action Encompass core energy sectors Integrate with climate change policy, NEECS and fuel-related parts of National Transport Strategy Feed into assessment of relative R&D priorities and to evolving international relationships Support wider government strategies, e.g. economic transformation

5. Relationship to the NEECS and climate change NZES and NEECS are being developed concurrently NZES - long-term strategic direction for energy policy NEECS - focus on implementation actions to enhance energy efficiency and encourage renewables, consistent with policies in NZES. NZES and NEECS form the core of the energy sector work programme for climate change policy

6. Developing the NZES: process STRATEGIC DIRECTION POLICY IMPLEMENTATION Stationary energy supply Low carbon fossil Energy security (fossil fuels, exploration) Stationary energy demand Transport (supply & demand) Energy innovation (cross sectors) Generation and transmission Energy efficiency (industry, buildings etc) Conservation Demand side participation Demand side management Vehicle fleet & technology Oil security Research priorities Industry development Coordination & international links  Potential  Targets and milestones Fuels (bio, elec) Low carbon and vibrant economy Renewables  Action plans  Instruments  Measurement LONG-TERM GOALS AND SCENARIOS Reliable and resilient Environmentally responsible Fair and efficient prices

7. Developing the NZES: content Providing direction: long term goals and scenarios Long term objective e.g. –low carbon and secure energy system to support a vibrant economy and way of life Energy scenarios and their implications for policy priorities e.g. –what is the scope to reduce primary energy demand by 2030? –to what extent can dependency on oil be reduced by 2030? –to what extent can renewable energy meet primary energy demand by 2030? Challenging sector/thematic goals e.g. [X%] renewable stationary energy supply by 2030

8. Developing the NZES: content Policy issues, options and choices –renewable & low carbon energy supply –energy security & long term infrastructure –energy efficiency –Transport sector (fuels, vehicles & behaviour) –Research, innovation & international linkages Action plan

9. Stakeholder engagement Two phases of opportunity for stakeholders’ input: Phase 1: Developing the strategy: –NEECS comment-seeking phase –providing feedback on TOR –workshop on future energy directions (23 August) –informal meetings with stakeholders Phase 2: Consultation on the draft strategy: –broad public consultation on the draft strategy Anyone interested in contributing is welcome to provide comments at any time via the Ministry of Economic Development’s website at www.med/nzes.govt.nzwww.med/nzes.govt.nz

10. Concluding comments Development of NZES is timely, given ongoing debate over effectiveness of existing policy settings and twin long-term challenges of climate change and energy security Views as to what the NZES should contain appear to vary widely Stakeholder input is essential