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Report signals shortfalls in NZ’s future electricity supply
Published by the Communications and Development Department
7 October 2002
The report reinforces the continued vulnerability of the electricity supply during dry year events and also the increasingly urgent need to respond to the decline of the Maui gas resource. It outlines that New Zealand is facing an unprecedented situation where if nothing is done there is a high risk of electricity shortages over the next few years. The report further suggests that reducing electricity consumption through energy efficiency and other demand side management measures will not on their own provide the necessary energy savings to meet future needs.
“The message from these findings must be that urgent action is required to counter these risks”, says Dr George Hooper, Executive Director of CAE. “Unless these issues are dealt with quickly, productivity and investment in New Zealand will be comprised. More information is needed to fully assess the implications of the study findings and to build our understanding of likely preferred pathways to meeting future needs”.
“While the issues are complex there are a number of options available if we are prepared as a nation to work together to resolve the issues”, continues Dr Hooper. “There is a need for future thinking on how best New Zealand might manage a transition into a sustainable post-Maui era. Action to expedite and secure continued investment in the gas and electricity sectors is an urgent priority”.
The report makes a number of recommendations which the Government should implement including the assembly of an industry wide team with access to information on all aspects of the New Zealand system so that they can make a more accurate model of supply and demand; investigate the costs and economics of wind power generation and other ‘new renewable’ generation technologies; and carry out a wide-ranging review of the electricity market in New Zealand and other markets overseas to see if there is a market model which is better able to provide the country with a reliable and economic supply of electricity.
“CAE supports the recommendation outlined in the report that Government should move to assemble an industry wide team to address the issue”, says Dr Hooper. “Government, public institutions, private companies and New Zealand society, all need to work together to resolve the issues. We need to build an optimum strategy for overcoming these impacts”.
This is the sixth edition of the Electricity Supply and Demand Report and builds on a ten year record of CAE publishing independent data and comment on generation and market issues affecting the future electricity needs of New Zealand. The report has been authored by Bryan Leyland, Principal, Sinclair Knight Merz, and he will present its findings at the New Zealand Energy Conference taking place in Wellington today and tomorrow.
CAE is an independent not-for-profit organisation established in 1987 to commemorate the centenary of the School of Engineering at the University of Canterbury, Christchurch. CAE holds as its mission the advancement of social progress and economic growth for New Zealand and strives to do this through broadening national understanding of emerging technologies and facilitating early adoption of advanced technology solutions.
For further information contact Jacqui Hamilton Communications Advisor
Bryan Leyland
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