9. NIKKI KAYE (National—Auckland Central) Link to this
to the Minister for the Environment
What reports has he received on consents granted on renewable electricity projects since the ETS came into effect and how does this compare with the previous decade?
Hon Dr NICK SMITH (Minister for the Environment) Link to this
More consents were granted for renewable energy projects in the last year than ever in New Zealand’s history. A total of 1,340 megawatts was consented, which was made up of 59 percent wind energy, 26 percent geothermal energy, 13 percent hydro energy, and 2 percent tidal energy. This is five times the average per year over the previous decade, when it was 233 megawatts per year. It is also noteworthy that no new thermal generation was consented, which contrasts with the last decade, when most of the new capacity was from fossil fuel.
Hon Dr NICK SMITH Link to this
The first change is in the price signals. The previous Government subsidised fossil fuel generation. The new 155 megawatt Whirinaki diesel station was funded from Government levies, and the Government provided an underwriting guarantee for the gas contract on the massive 385 megawatt e3p new generator at Huntly. In contrast, the emissions trading scheme has imposed a price penalty on fossil fuel generation since 1 July. The second change has been in the consenting policy. Whereas renewable stations used to take up to 5 years to get through the Resource Management Act, our Resource Management Act reforms have freed up the process, and consenting decisions are being made in record time. We have also adopted a Resource Management Act national policy statement on renewables, in order to support increased capacity.
Brendon BurnsWhen the Minister suggests that his emissions trading scheme has boosted renewable energy investment, how many of the 11 new stations consented to were, in fact, well under way in planning and consent before the change of Government, or does he pretend it is all his own work?
Hon Dr NICK SMITH Link to this
Of the new generating station capacity of 1,340 megawatts, just over 1,000 megawatts—about 80 percent—was after the emissions trading scheme legislation was passed. It was after the emissions trading scheme legislation was passed—
Hon David ParkerHon Dr NICK SMITH Link to this
—which I think Mr Parker would note was in the dying days of the last Labour Government.