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The New Zealand energy story
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The New Zealand energy story

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This is New Zealand's energy story, as told by Janet Stephenson and Sea Rotmann at the Task 24 workshop in Wellington in February 2013.

This is New Zealand's energy story, as told by Janet Stephenson and Sea Rotmann at the Task 24 workshop in Wellington in February 2013.

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The New Zealand energy story The New Zealand energy story Presentation Transcript

  • demand-sideThe New Zealand energy story ^ Sea Rotmann and Janet Stephenson
  • NZ energy supply (1 slide only!) • 61% of Total Primary Energy Supply is non- renewable (2011)* (2nd lowest in OECD after Iceland) • 77% of electricity from renewable sources (2011)* (3rd highest in OECD) • World’s largest renewable energy potential? *MED 2012 NZ Energy Data File
  • Strategy structure New Zealand energy strategy This strategy retains the four priorities and twelve areas of focus proposed in the draft strategy. These are intended to support New Zealand to make the most of its energy potential. The structure of the strategy is outlined in the following diagram. Note that some areas of focus relate to more than one priority, but for convenience are placed under one priority. AREAS OF FOCUS 3 Embrace new energy 4 2 technologies Develop renewable Competitive energy markets energy resources deliver value for money PRIORITIES 1 5- 90% renewables by 2025 Develop petroleum and Develop Oil security mineral fuel resources- 55PJ energy savings by 2015 resources Secure and and transport- 10% energy consumption reduction affordable GOAL energyper staff member in the public service 12 6 Make the most(cf 2008/09) Reduce energy- related greenhouse of our energy Reliable electricity Environmental supply- Extend MEPS/MEPL gas emissions responsibility potential 11 Best practice in 7 environmental Efficient use Better consumer management of energy information to inform for energy projects energy choices 8 10 Enhance business Warm, dry, energy competitiveness through 9 efficient homes energy efficiency An energy efficient transport system Balancing risks, constraints and opportunities
  • New Zealand energy - domestic policies overview• The Government takes the view that while we are going to require fossil fuels for the foreseeable future, there are actions we can take now to reduce our dependence on oil and facilitate a transition to alternative sources of energy.• These actions include:- New Zealand Emissions Trading Scheme- Encouraging entry of biofuels and electric vehicles to the NZ market- Investment in public transport infrastructure; and- The Petroleum Action PlanMinistry of Economic Development 2011
  • New Zealand oil & petroleumMinistry of Economic Development 2011
  • ENERGY USE IN NZ
  • What types of energy are used? MED (2012) NZ Energy Data File p 11
  • What types of energy are used? MED (2012) NZ Energy Data File p 11
  • What types of energy are used? MED (2012) NZ Energy Data File p 11
  • What is it used for? MED (2012) NZ Energy Data File p 14
  • What is it used for? MED (2012) NZ Energy Data File p 14
  • How is energy use trending? Graph: MED (2012) NZ Energy Data File p 17
  • How is energy use trending? Graph: MED (2012) NZ Energy Data File p 17
  • How is energy use trending? Graph: MED (2012) NZ Energy Data File p 17
  • How is energy use trending? 0.5% increase in demand in 2011 Graph: MED (2012) NZ Energy Data File p 17
  • How is energy use trending? 21% improvement in energy intensity since 1990 (but EE improvement is well below OECD average) 0.5% increase in demand in 2011 Graph: MED (2012) NZ Energy Data File p 17
  • ELECTRICITY USE IN NZ
  • Electricity consumption by sector MED (2012) NZ Energy Data File p 105
  • Electricity prices rising And a 4.4% residential price rise in 2012 MED (2012) NZ Energy Data File p 135
  • Electricity demand flattening? MED (2012) NZ Energy Data File p 119
  • Electricity demand flattening? MED (2012) NZ Energy Data File p 119
  • 260 MW on hold• Meridian Energy is canning its planned North Bank Hydro Project on the Waitaki River for the foreseeable future, saying it is uneconomic in the current flat electricity market.• "Like other generators we recognise that the demand outlook for the next five years is probably flat to slightly declining," chief executive Mark Binns said in a statement.
  • NZ ENERGY BEHAVIOUR IN CONTEXT
  • Low household energy use per person
  • Low household energy use per person
  • Low % of energy spent on space heating IEA Scoreboard 2009 p97
  • Low % of energy spent on space heating IEA Scoreboard 2009 p97
  • Low % of energy spent on space heating IEA Scoreboard 2009 p97
  • High energy use per passenger-km IEA Scoreboard 2009
  • High transport energy use as % of total household energy Compiled from IEA figures (2009) by Gerry Carrington
  • High transport energy use as % of total household energy• 0.73 vehicles per capita (MOT series data)• 8th highest in world (World Bank Compiled from IEA figures (2009) by Gerry Carrington indicators 2010)
  • DEMAND-SIDE INITIATIVES
  • Transpower – demand response• Action taken by consumers to reduce net demand in response to (usually) a price signal• Pilot with large users from 2008, now beta testing• Medium term target 100MW in upper North Island• Savings in new generation & grid capacity
  • Energy companies - smarter meters• Increasing installations by energy companies• Improve their knowledge of customers’ use patterns• Benefits for customers less clear so far
  • Powerswitch www.powerswitch.org.nzConsumer NZ (independent body) with support fromthe Ministry of Consumer Affairs MED (2012) NZ Energy Data File p 123
  • Government demand-side initiatives MEPS
  • Government demand-side initiatives MEPS
  • Government demand-side initiatives MEPS
  • Government demand-side initiatives MEPS
  • Government demand-side initiatives MEPS
  • Council & community actionEnergy use in homes & businessesEnergy use in transport
  • DEMAND-SIDE ISSUES
  • Transport inefficiency, car reliance & transport-related GHG emissions44% ofemissions in2009 NZ Government (2011) NZ Energy Strategy 2011-2021, p9
  • NZTA 2012
  • NZTA 2012
  • NZTA 2012
  • NZTA 2012
  • NZTA 2012
  • Poverty & energy use (~25% of hh)Household income $55,000 pa Energy bill $2,700 pa medianmedian
  • Issues for this cluster• Housing quality, damp, poor insulation, inefficient heating devices• Energy poverty, health issues• Poll* on NZers financial concerns: 51% said electricity bills of most concern (more than rates, food, petrol, house prices)*Fairfax NZ, n=600, Jan 2013
  • Wealth & energy use (~20% of hh)Household income $85,000 pa Energy bill $4,000 pamedian median
  • Issues for this cluster• Large houses, many appliances• Highest energy use• Little attention to efficiency or conservation• Can afford action, but don’t take it
  • Grid management issues• Increasing renewable & distributed generation• Feed-in to grid from household PV• Electric vehicles in due course?
  • DSM in policy• Low visibility of demand side in govt priorities• Lack of govt action to support targets, e.g. business efficiency, home energy advice• Poor funding and profile for EECA, dislocation in relation to supply side
  • Where would we like to be?• fast followers and adopters of best practice?• leading in renewable electricity?• improve housing stock and social norm around warmth and comfort?• but don’t go too far (like eg Norway)• less fuel poverty, more energy security• more involvement from citizens (make energy visible)?
  • Where do you think we should be?