BANZ MEDIA STATEMENT

Renewable Electricity NPS is a lost opportunity

Heat is a considerable consumer of fossil fuels and the narrow focus of the National Policy Statement is a lost opportunity for Government to reduce emissions. The National Policy Statement on Renewable Electricity released yesterday will require all Councils to make provision in their policy statements and plans for developing, operating, maintaining and upgrading renewable electricity generation. It fails to cover heat and focuses only on electricity.

“The absence of renewable heat is a gross omission, and a lost opportunity”, says the Bioenergy Association of New Zealand.

Commenting on the NPS, BrianCox, Executive Officer of the Bioenergy Association of New Zealand (BANZ) said, ‘At a time when the government is making a significant commitment to a renewable energy target, the omission of renewable heat from this NPS is difficult to understand, but it’s not unexpected.’

Mr Cox added, ‘One of the most disappointing aspects of this announcement is that many Council’s are blessed with significant wood resources that could have been put to good use for heat with minimal additional expenditure. It’s a lost opportunity on a number of levels.’

In its written submission in 2008 and in an oral submission in 2009 BANZ indicated its general support for the NPS but highlighted that many of the proposed policies and plans associated with electricity generation could readily be adapted to heat, biogas and liquid biofuel applications.

BANZ said that it recognised that electricity generation is of national significance as specified in the draft NPS, but that heat supplies, biogas and liquid biofuel applications are often able to replace the need for additional electricity generation, or at least replace the need for use of natural gas, coal and hydro for base load generation, and so should be covered by an NPS. In addition gas and hydro energy can then be reserved for their most valuable use which is for the meeting of peak electricity demand using their quick response capabilities.

Mr Cox explained that heat, biogas and liquid biofuel projects generally have a more local rather than national impact than many electricity generation projects. However because of local interests, the potential for local adverse impacts to be argued as outweighing the broader national interest often occurs. In its submission BANZ drew this comparison and encouraged the broadening of the NPS to cover all forms of renewable energy.

In the last year BANZ has been working on the development of the Bioenergy Strategy - a strategy that it says will turn bio opportunities into economic and business growth. The development of the Strategy is the first step in the process. If investments are to increase we need stronger and more stable policy. Mr Cox explained that the Bioenergy Strategy is the basis of that policy and with the right support can deliver the potential. But he added, ‘Clearly the support is not quite there yet.’

Notes to Editors

BANZ Submission on the Renewable Electricity NPS
a. Written Submission, 2008
b. Oral Submission, 2009

Bioenergy Strategy and Supporting Materials
The Bioenergy Strategy sets out a picture of a nationally significant bioenergy business sector, built on New Zealand’s capability and expertise in growing and processing wood-crops and converting organic by-products to energy, which by 2040 supplies more than 25% of the country’s energy needs, including 30% of the country’s transport fuels.” Extending bioenergy’s contribution to the country’s energy needs from 8% to 25% by 2040 will significantly reduce New Zealand’s dependence on fossil fuels and imported oil, improve national energy security, and – as a side benefit – reduce carbon emissions by around 4.5 million tonnes per year.”

a. New Zealand Bioenergy Strategy, August 2010
b. A Picture of Bioenergy Opportunities in New Zealand, August 2010

1. The Bioenergy Association of New Zealand (BANZ) - BANZ was established in 2001 to promote and coordinate the development of a bioenergy industry in New Zealand. BANZ provides a central focus point for liaison with Government agencies, the dissemination of information amongst the industry and long-term positioning of bioenergy into New Zealand's energy system. Members include anyone with a commercial interest in bioenergy - sawmillers, wood processors, energy suppliers, energy researchers, consultants, manufacturers and investors.

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