Keynote presentation by Simon Arnold at 2017 OERC Symposium

1. Implementing the
Energy Research Strategy
for New Zealand
Simon Arnold
Chief Executive Officer

2. • Developed by NERI to guide
investment in energy R&D
• Informed by NZ energy-related
strategies & consultation with
~150 energy stakeholders
• Identifies the key issues (risks and
opportunities) requiring local R&D
to address
What Strategy?

3. • Medium-term and beyond
business-as-usual
• NZ specific and not likely to be
solved by overseas research
• Have a significant national impact
• Provide the framework for more
detailed directed research
programmes
Identifying the issues

4. NZ’s energy use

5. Electricity R&D issues
• Security of supply in the face of disruptive
technologies and consumer behaviours
• Emissions reductions, targeting peak grid demand
and dry year support
• Increase lower cost, cleaner, geothermal energy for
both electrical and thermal loads

6. Transport R&D issues
• Options for long distance transport in NZ (including
charging technologies) along with the future of
logistics, travel and tourism
• ICT to reduce New Zealand’s exposure to distance (e.g.
telepresence, remote sensing and AR/VR)
EVs and autonomous vehicles should address light fleet issues.

7. Industrial R&D issues
• Explore a bio-chemicals industry with biofuels as a co-
product
• Develop products & processes for food markets where
clean energy earns a premium
• Investigate new low emissions products and processes
for the petrochemicals industry

8. Residential and System-wide
• Low cost ways to keep homes warm and dry
• Avoid adverse impacts on the less well off
• Monitor and improve our understanding of New
Zealand’s energy sector
• Grow NZ’s internationally competitive energy R&D
capabilities

9. Need funding
• Strategy underpins the case
• $27m p.a. in Gov’t funding
– BUT $20m+ goes on resources
• Discussing a significant new
multi-year energy R&D
programme with MBIE
• But we need a business
plan/case

10. So we need
to develop
Research
Programmes
to deliver on
the Strategy
…
Theme Sub-theme Programmes
1. System
wide
1.1 Modelling &
monitoring
Modelling and forecasting
Monitoring
2. Social 2.1 Warm dry homes for
all
Materials, construction retrofitting
Domestic and district thermal loads.
Energy storage (incl. EVs)3. Reliable,
lower cost,
clean
electricity
3.1 Reduce use of fossil
fuels in the generation
system
Large scale thermal generation. Energy
storage (incl. dry years)
Embedded power system storage and
stability3.2 Power system storage
3.3 Increasing cleaner,
lower cost geothermal
Improving extraction and lowering GHG
Above ground conversion efficiency
4. Industrial
emissions
4.1 New low emissions
products and processes
Food
Petrochemicals
Bio-refineries
5. Efficient
clean,
heavy duty
transport
(land, sea &
air)
5.1 Alternative motors
and fuels Bio-avgas and aviation
Marine fuels
Land (particularly trucking)
Next generation logistics
5.2 Lower emissions
trade and tourism Virtual meetings and experiences

11. … and
identify
capabilities
to lead the
Research
Programmes
Logistics, Tourism (UoO)
AR, VR, Telepresence (UoO, VUW)
Bioenergy
Electric Machines
Building Science (Scion)
Human Factors
Policy and economics
Food
Thermal machines
Power systems
Petrochemicals

12. Plan needs to be:
• Driven by defined outcomes –
applied, directed R&D
• Focus on high priorities
• Interdisciplinary, multi-
provider, multiple approaches
• Use international resources,
& build capabilities

13. Cut electricity GHG emissions
• Problem is peak generation
and dry years
• Peaks largely domestic a.m.
and p.m. thermal loads
• Multiple ways to tackle:
– Centralised, decentralised
– Other fuels, shift load, store
energy, change behaviours
• Need all in play
– Requires multiple skills

14. What are your thoughts?