4. GERRY BROWNLEE (National—Ilam) Link to this
to the Minister of Energy
What does the annual increase in New Zealand’s demand for electrical energy need to be restricted to if New Zealand is to meet the Government’s 90 percent renewable source generation target by 2025, under the approach laid out in the New Zealand Energy Strategy?
Hon DAVID PARKER (Minister of Energy) Link to this
New Zealand does not need to restrict increases in demand. We can meet demand through our substantial renewable resources, which we know are affordable. Of course, New Zealand should invest in efficiency to moderate increases in demand where this is cheaper than new generation. New Zealand has a competitive advantage in renewables, and the Labour-led Government is going to seize that opportunity.
Why does the New Zealand Energy Strategy talk of a 1.3 percent annual demand growth for electrical energy when the historical demand has been over 2 percent; and further, having settled on the figure of 1.3 percent growth, why does it state that only 9 percent growth between 2006 and 2025, or 0.5 percent per annum, will be enough to get New Zealand to 90 percent sustainably generated electricity?
The estimates as to future demand are drawn mainly from the Electricity Commission’s work. The Electricity Commission, even before this strategy, did not think that New Zealand’s electricity demand was going to continue to grow at what has been 2 percent per annum. Of course, the Energy Efficiency and Conservation Strategy that Jeanette Fitzsimons has been instrumental in drafting will also help knock off the top of demand.
How does he expect the two energy strategy documents recently described as “Pollyanna-ish” to face up to the tough questions of actually generating enough electrical energy for New Zealand to become a world-class economy when the paper hardly considers economic growth, uses different figures for economic growth and demand growth in different places, and does not even mention GDP growth rates?
The underpinnings in terms of growth forecasts are those that are used by Treasury, so there is nothing new there. I return to the original point—New Zealand has abundant sources of affordable renewables that we ought to develop.
Maryan StreetHas the Minister received recent reports indicating growing support for renewables growth, as outlined in the Government’s Energy Strategy?
A member of this House has recently put out his own press release indicating his thoughts on energy policy. Members should listen carefully, it reads like this: “Simply directing SOEs not to use renewables will not be enough.” That is correct—telling State-owned enterprises not to use renewables would be a nonsense. That is why we are doing the opposite.
Hon Ruth Dyson
Madam SPEAKERWhy would we accept the confused figures in the New Zealand Energy Strategy, and that those confused figures mean that electricity generation can be 90 percent renewable by 2025, when, despite talking about it for years, the percentage of electricity generated from renewable resources under the Minister’s Government has declined considerably over the last 8 years?
Peter BrownNoting the debate about the 90 percent target, is the Minister aware that in the port of Tillamook in Oregon, USA, electricity is being generated in relative abundance from a centralised methane digester system, which, basically, successfully produces electricity from cow manure—at a very reasonable cost, I might add—and is this not an idea worth considering, noting that it produces electricity and cuts down on carbon dioxide gases?
No, I am not aware of that particular proposal but I am aware of similar proposals. I am also aware that one of the announcements the Hon Jim Anderton made some few weeks ago was to look at producing energy on farms from the likes of methane produced from dairy-shed waste. It is a good idea.
Jeanette Fitzsimons Link to this
Does the Minister agree that reducing the demand for stationary energy by 30 petajoules a year by 2025, or 30 times the total consumption of Nelson each year, which would result from implementing the measures in the Energy Efficiency and Conservation Strategy, would not only help achieve the goal of 90 percent renewal electricity but also limit the environmental impact from new renewables like hydro and wind, increase security of supply, and save all Kiwis money?
Can he confirm that should New Zealand reach the 90 percent renewable target by 2025, at that point our emissions from electricity generation would be only just below 1990 levels; if so, how does that fit with the Prime Minister’s claim that electricity generation can be carbon neutral by 2020?
The first point I would make in respect of the 90 percent target is that people seem to forget that New Zealand used to have 90 percent renewable electricity, and it seems a good ambition to get back there. The second point I would make is that the exact level of emissions in 2025 will really depend upon the rate at which New Zealand can retire its older thermal. It seems likely that by then, the level of emissions will be between 2 million and 3 million tonnes per annum, which is quite modest and able to be offset.
Why is assistance for the retrofit of rental properties available only to landlords who have tenants holding a community services card?
It is because those properties tend to be the worst properties, and that should be no surprise to the member. People who have lower incomes, generally pay the lowest rent and therefore get the lowest quality rental properties to live in; and those are generally the worst insulated.
I seek leave to table a document stating: “Simply directing SOEs not to use renewables will not be enough.”
I seek leave to table documents on the success that the port of Tillamook is having in producing electricity.