EA chair casts doubt on renewable energy target

Moving to 100% renewable generation will be difficult to achieve while maintain current levels of reliability and affordability, says Electricity Authority (EA) chairman Brent Layton.

Layton says the electrification of transport and some process heating is likely to play a significant role in decarbonising the economy.

“With over 80% renewable energy sources, New Zealand is well-poised for transitioning to a low emissions economy,” Layton says.

“However, given current technology for electricity generation and system management, a move to 100% renewable generation while maintain current levels of reliability and affordability appears challenging.”

“The EA’s role will be increasingly important as New Zealand’s electricity sector navigates its way through the changes in technology and the large increases in output likely to be required.”

Since 2010, powers and functions have stayed the same but the environment in which it operates is changing significantly.

Layton says other jurisdiction are facing opportunities and changes as innovation and new technologies emerge.

New Zealand’s has a high level of renewable generation that isolates from other countries and therefore the country may be susceptible to shortages of water to run hydro-generators, Layton thinks.

The EA says it will continue work on reducing barriers to the entry, expansion and exit of parties in electricity markets, especially for new and potential entrants.

“We believe the prices for distribution and transmission services should be service-based and cost-reflective. This will give better information about the true cost of their decision and encourage them to invest in technology in the ways that have long-term benefits.”