New Zealand Targets 90% Renewable Energy by 2025

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The government of New Zealand has announced a target of 90% renewable electricity production by 2025. The move has been welcomed by the New Zealand Wind Energy Association (NZWEA) (Wellington, New Zealand).

Windfarms could generate 20% of the country's energy by 2025, representing an installed generating capacity of about 3,000 megawatts (MW). This would be up from the current 615 MW, which contributes about 4% of national power.

The CEO of NZWEA, Eric Pyle, said, "Ultimately the market will decide which new electricity generation is best. A recent Deloitte report shows that New Zealand wind energy is a cost-effective way of bridging the energy gap in the future."

At the end of August, the acting minister of energy and resources, Hekia Parata, said that the country was blessed with an abundance of energy resources. "Renewables made up 79% of our total electricity generation in the March 2011 quarter. New Zealand has a target of 90% of electricity generation to be from renewable sources by 2025, and we are well on our way to achieving that."

The government's goal was to make the most of all the assets the country had--hydro, wind, geothermal, oil, gas and minerals, she added.

The acting minister released an independent report that assessed New Zealand's oil and gas potential. The country is set to earn more than $3 billion in royalties from oil and gas fields already in production, and this could increase to $12.7 billion with future discoveries, Parata said.

The government is seeking public submissions on changes in the way permits are issued for oil and gas exploration. It is proposed that the government will open up a limited range of specific areas for tender. Currently companies can apply to explore any area in New Zealand.

"We can't just turn off the tap in our journey to a lower carbon economy. We also can't ignore the major economic opportunity that continuing global oil demand could provide New Zealand. Petroleum was our fourth-biggest earner in 2010," Parata said.

Parata said that the government was also reviewing the Crown Minerals Act (1991), and a discussion document would be released for consultation before the end of the year. Legislation was expected to be introduced next year, with a focus on realigning the act with the government's economic plans.

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