New Zealand Energy Developments Update

Clem Arlidge

Energy Policy Advisor

47th APEC EWG 19-23 May 2014

New Zealand Energy Developments Outline

• Establishment of the New Zealand Smart Grid Forum• 2014 Oil & Gas Exploration Block Offer• Renewable Electricity Generation• Bioenergy Developments• Energy Efficiency Projects• Energy Intensity & GDP

• Government – Electricity Networks Association partnership• Provide a platform for dialogue between senior

representatives from across the industry, including business, scientific and academic interests• Objective: to advance the development of smart

electricity networks in New Zealand through information sharing and dialogue, supported by analysis and focused work-streams

Establishment of the NZ Smart Grid Forum

2014 Oil & Gas Exploration Block Offer • Oil is NZ’s 4th largest export• $2.5 billion contribution to GDP2014 Exploration permits awarded to: • Statoil (Norway)• Woodside Energy (Australia)• Mont D’or Petroleum (Singapore)• 37 wells drilled (two offshore) in

2013/14

New Renewable Electricity GenerationMeridian Energy Mill Creek wind farm •26 turbines •60MW capacity •Powering 30,000 homes•40-50% average operating capacity (global average 30%)•Due to be commissioned in Dec 2o14Contact Energy Te Mihi geothermal power station •166MW capacity•Expected to reach full capacity in late 2014

Electricity Generation Q4 2013• 75% of electricity was

generated from renewables in 2013, up from 73% in 2012 • Electricity generation

greenhouse gas emissions for the December 2013 quarter were the lowest in 17 years • 84% renewable generation in

the December 2013 quarter

Thermal Electricity Generation Q4 2013• Electricity generated from coal in Q4

declined to 211 GWh, its lowest in over 14 years. • 62% lower than in the December

quarter 2012, and the lowest since the March quarter 1999. • Electricity generated from gas in Q4

2013 was the lowest in over 17 years.Huntly coal and gas power station

Bioenergy Developments Z Energy’s $21 million (NZD) biofuel production plant • Producing 20 million litres of biodiesel annually

The Southland Renewable Heat Hub •Heating for industrial processes and commercial buildings •Creating demand for 16,000 tonnes of wood•Offsetting 8,000 tonnes C02 per year

Energy Efficiency ProjectsFour new energy efficiency programmes•Efficiency and renewable energy use in the meat and dairy sectors•Fuel efficiency on New Zealand’s heavy vehicle fleet•Fuel efficient tyres information campaign•Southland Renewable Heat hub •Government will invest an additional $5.35 million over the next three years

Warm Up New Zealand Insulation Retrofits• Over 250,000 homes retrofitted with

insulation to date• Government investing $100 million over three

years and a further $50 million from project partners• Reducing respiratory illnesses and diseases

such as asthma and rheumatic fever

Energy Intensity decoupled from GDP

Further Reading

Further Reading

NZ Energy Publicationswww.med.govt.nz/sectors-industries/energy/energy-modelling

Energy Efficiency & Conservation Authority (EECA) informationhttp://www.eeca.govt.nz/

Thank You

Clem Arlidge

clem.arlidge@mbie.govt.nz