9. JEANETTE FITZSIMONS (Co-Leader—Green) Link to this
to the Minister of Energy
Does he agree with the Parliamentary Commissioner for the Environment that small consumers and providers of demand-side energy management solutions are not adequately represented on the Electricity Commission’s advisory groups, and that the introduction of smart meters should be accelerated to give consumers more control over electricity costs; if so, what action is he planning to take?
Hon DAVID PARKER (Minister of Energy) Link to this
The membership of these groups is under the control of the Electricity Commission, but I am aware that the chair of the commission believes that there should be consumer representation across all advisory groups and has invited consumer groups to make suitable nominations. On the issue of smart meters, I agree that they should be encouraged. One of the objectives of the New Zealand Energy Strategy is to identify key areas where we can improve energy efficiency, and I think smart meters are likely to play an increasing role.
Jeanette Fitzsimons Link to this
Does the Minister agree with the commissioner’s recommendation, also in this report, that more should be done to promote distributor generation; if so, when will the Ministry of Economic Development complete regulations to enable small-scale generation like micro-hydro, community-scale wind, and solar electricity to connect to the grid, as required by the 2004 Government policy statement on electricity governance?
I have spoken to the parliamentary commissioner about his report, and when he talks about micro-generation he actually includes demand-side management within the meaning of that term, which is a rather strange and extended definition of it. I agree with him that we do need to pay more attention to demand-side management, and including smaller generation.
Shane JonesDoes the Minister agree with the parliamentary commissioner’s recommendation to develop an overarching policy framework for the energy sector?
Yes, I do, and I am pleased to say that that is exactly what the New Zealand Energy Strategy is being developed to do. It will put New Zealand firmly on the path to an energy system that supports economic development while being environmentally responsible.
Hon Dr Nick Smith Link to this
Is the Minister surprised at the damning comments from the Parliamentary Commissioner for the Environment over energy policy, when his Government has built a new oil-fired power station at Whirinaki, has supported its own State-owned enterprise building a new coal-fired power station in Whangarei, has blocked renewable energy projects like Project Aqua and Dobson, and has overseen increases in greenhouse gas emissions in the term of this Government that are three times that of Australia and four times that of the United States?
No, I do not agree with them when characterised in the way the member just did. I do accept that New Zealand needs to build more renewable power capacity. I would point out that the increase in output of thermal generation has not been caused so much by an increase in the number of thermal stations as it has by the greater efficiency with which those plants have been made available to the market—that is, they have been run more often.
Jeanette Fitzsimons Link to this
In view of widespread agreement that distributed generation should be encouraged, what action will the Minister take to address the concerns of electricity lines companies that if they build small-scale renewable generation—as the Act now allows them to do—they are allowed to sell it only through their competitors, the large generator retailers, and that if they were able to sell directly to consumers, many small renewable projects would become economic?
That is one issue that will be considered under the National Energy Strategy. But it is not an easy issue, because of the risk of allowing lines companies to be able to retail direct is that they will be able to shift costs and, effectively, subsidise those generation options out of the monopoly rents that they could extract from their lines businesses.