The Government is seeking feedback on an ambitious programme of work to transition New Zealand towards a low emissions
economy, with consultation on five streams of energy policy launched by Minister of Energy and Resources Dr Megan Woods
today.
“This Government has already laid the groundwork for a new energy future that moves us away from fossil fuels and
towards renewable energy,” Megan Woods said.
“The next steps are to shape how that will happen.
“Yesterday’s announcement with BlackRock on a $2 billion investment fund for clean tech and renewable energy shows how important our climate change policies are to attracting investment to help secure a fully renewable
electricity grid.
“The future of energy in New Zealand is renewable. We will phase out fossil fuels and replace them with clean energy.
“This will give New Zealand a leading economic edge as people demand more sustainability in the products and services
they buy, and help New Zealand meet its climate change commitments.
“Achieving this will require the energy transition to be made in a way that keeps the lights on, keeps power bills
affordable, and keeps our economy growing.
“That’s why we are taking a coordinated and deliberate action to improve the way the entire country is powered – from
the energy used to process food to the energy used to deliver it to your door.”
“We are asking New Zealanders to have a say on important policy areas that will shape our way toward to a renewable
future,” Megan Woods said.
The consultations include:a plan for managing the gas industry’s transition to a low emissions futurean Interim Hydrogen Roadmap to set out the government’s initial views on the future role of hydrogen in New Zealandregulations to enable offshore renewable energy developmentmarket measures to make sure electricity is reliable and affordable as we transition to an expanded and more renewable
system,and how we will implement the Emissions Reduction Plan action to ban new fossil fuel baseload electricity generation.
“Setting the gas sector on the right path will be critical for reducing emissions, maintaining energy security and
affordability, and for New Zealand’s prosperity. The offshore renewable energy consultation demonstrates the significant
growth potential of this resource and economic opportunities. The electricity market measures consultation considers
challenges arising during the transition, and explores whether additional measures may be needed to keep electricity
reliable and affordable as more renewable electricity supply is developed,” said Megan Woods.
“Where electrification isn’t easy, we want to equip Kiwi businesses and households to choose the best emissions
reductions technologies for the job. Sustainable and safe hydrogen and biogas will be part of this mix. The Interim
Hydrogen Roadmap consultation and the Gas Transition Plan issues paper explore the opportunities in this area and the
key trade-offs that may need to be made.
Together, the consultations aim to inform further work to set the direction and pace of change for reducing New
Zealand’s emissions from energy.***
Submissions will be used to develop a final Hydrogen Roadmap, Gas Transition Plan, offshore renewable regulatory regime,
identify priority electricity market measures and support implementation of Government’s commitment to ban new fossil
fuel baseload electricity generation, as well as support the development of the New Zealand Energy Strategy by the end
of 2024.
More information on how to make a submission is available on the Ministry of Business, Innovation and Employment’s
website: www.mbie.govt.nz/ourenergyfuture
Interim Hydrogen RoadmapIn the Interim Hydrogen Roadmap, we are asking for feedback on the opportunities and trade-offs for hydrogen in New
Zealand’s energy transition, and the proposed role the Government could play in supporting it.Hydrogen can be produced in renewable ways, mostly through electrolysis of water using renewable electricity. When used
in a fuel cell, green hydrogen produces no greenhouse emissions at the point of use and emits only water vapour.Green hydrogen could play a role in decarbonising hard to abate activities like industrial processes and in heavy
transport (e.g. heavy road freight, marine transport and aviation), alongside other energy sources like electrification
and bioenergy.The Interim Roadmap includes actions to:establish a public-private body to help coordinate activity between government, the sector and other interested
organisationsundertake regulatory work focused on enabling safe basic operation of key hydrogen equipment and activitiesinitiatives recently announced in Budget 2023 to provide up to $100 million over ten years for the Regional Hydrogen
Transition initiative, a rebate to hydrogen consumers targeted at supporting a just transition, as well as $30 million
over three years for a clean heavy vehicles grant.The Gas Transition Plan Issues Paper seeks views on the key challenges and opportunities for the fossil gas sector to
transition to a future of low carbon emissions.The final Gas Transition Plan will identify the opportunities and benefits provided by the energy transition for the gas
sector, identify pathways for the fossil gas sector (focusing on the period out to 2035), and identify the role for
renewable gases and other low emissions technologies.We want to hear from our Treaty partners, businesses, and communities on the key challenges and opportunities for the
gas sector to transition to a low emissions future.We are also seeking feedback on a range of technologies that could assist the fossil gas sector in reducing emissions,
such as biomethane, hydrogen and carbon capture, utilisation and storage.
Offshore Renewable EnergyWe are seeking feedback on proposed regulations to enable renewable energy development at sea, which could help us to
get to net zero 2050.We are interested in stakeholders’ views on a proposed regime to enable offshore renewable infrastructure to be
constructed, operated and decommissioned.Getting our regulatory settings right will give developers greater certainty to support investment in offshore renewable
infrastructure.The regulations will be developed to enable iwi participation, balance environmental considerations and address
decommissioning risks.
Electricity Market MeasuresThe 'Electricity Market Measures' issues paper investigates the need for electricity market measures that support
affordable and reliable electricity supply while accelerating the transition to a highly renewable electricity system.We are asking for feedback on what potential market measures may be needed to support the electricity sector through
this transition.The paper covers generation, wholesale market competition including challenges faced by independent retailers,
transmission and distribution networks, demand flexibility, and also how policy objectives are reflected for the
electricity system regulators.A shared view of the direction and needs of the electricity system will enable government and industry to drive
innovation and create new solutions for consumers.The Electricity Market Measures consultation is accompanied by a companion document that seeks feedback on the
implementation of an Emissions Reduction Plan action to ban new fossil fuel baseload electricity generation. We are
asking for feedback on the design of this legislation and whether there should be any exemptions.
New Zealand Energy StrategyThe New Zealand Energy Strategy will support the transition to a low emissions economy, address strategic challenges in
the energy sector, and signal pathways away from fossil fuels.The Strategy will build on these consultations and align existing policies to ensure a coordinated approach towards the
energy transition.Development of the Strategy is underway and throughout 2023 MBIE’s focus is on holding discussions with a wide range of
stakeholders who hold the knowledge and expertise we need to inform our initial thinking for the energy transitionAfter this targeted engagement, we expect to release our thinking to date in a discussion document and seek feedback
from across Aotearoa New Zealand through public consultation.This means that – by the end of 2024 – all New Zealanders will have been invited to provide their feedback on the next
steps for our energy system. This will allow us to check the right direction to take us forward, and get input on the
big trade– offs that all New Zealand will collectively have to make.
ENDS
For more information, contact:
Liz Banas
021 805 845