Energy strategy needed

New Zealand will not meet a 100% renewable electricity generation target by 2030 and attempting to do so will just hold the country back.

So says KPMG’s report 30 Voices on 2030: The future of energy in Aotearoa which interviews 30 energy innovators and industry leaders to describe how New Zealand’s energy sector might look in 2030.

Chief executives from Ara Ake (Cristiano Marantes), Z Energy (Lindis Jones), Meridian Energy (Neal Barclay), The Energy Collective (Luke Blincoe), Genesis Energy (Malcolm Johns), The Electricity Authority (Sarah Gillies), Mercury (Vince Hawksworth), Octopus Energy (Margaret Cooney), Vector (Simon Mackenzie), Hiringa Energy (Andrew Clennett), Contact Energy (Mike Fuge), Lodestone Energy (Chris Jewell), Powerco (James Kilty), and Northpower (Andrew McLeod) are among them.

KPMG heard more collaboration, changes to policy and regulations, supply chain issues, technology and innovation, market structure, and sharing benefits and costs evenly among consumers need sorting.

Energy sector leaders told KPMG that despite New Zealand’s rich renewable resource base and natural advantages, the country faces significant challenges in its energy transition.

“Unrealistic renewable targets, regulatory uncertainties, high costs, the lack of an energy strategy and an ‘unjust’ transition are among concerns raised, KPMG suggesting the incoming government might wish to heed them.

“We very clearly heard we don’t need an ‘aspirational target’, we need an energy strategy,” says KPMG partner and energy industry co-leader Greg Bishop.

“No one believed New Zealand would meet a 100% renewable electricity generation target by 2030, and attempting to do so will just hold us back.”

While acknowledging the challenges, most of those interviewed for the report remain positive for the transition’s success.

They highlight New Zealand’s unique strength of community relationships and partnerships which can be used to develop the energy sector’s talent base and foster new industry collaborations, the report explains. 

Above all, energy leaders interviewed told KPMG that the energy transition is bringing new opportunities which New Zealand is well placed to seize.

The development and adoption of new renewable power generation, energy storage, demand management and digital technologies, based on a solid strategy and facilitated through good relationships with consumers and communities, should enable New Zealand to achieve its energy goals.

However, there was real concern that the energy transition will increase social inequality, with those least able to afford it facing higher costs of both electricity and fossil fuels.  

“We need energy strategies and solutions which will help fuel prosperity for our country, not just to 2030, but beyond. Now is the time for action,” says KPMG partner and energy industry co-leader David Gates.

Go to TransportTalk for more on this story.