Climate Change: the IPCC Third Assessment Report • Wellington
workshop May 2001
Draft National Energy Efficiency and Conservation Strategy:
background, rationales, issues
Robert Tromop
Energy Efficiency and Conservation Authority
Sustainability Policy
The sustainable development direction of this Government is
targeting a balanced mix of Social, Environmental and Economic
benefits. It may turn out that this is not achievable, and one of these
goals will have to be compromised.
There are three key drivers for the Draft Strategy:
1. Energy & Resource System issues
At all parts of the energy system; extraction, transformation from
primary to consumer forms of energy, transmission, distribution, and
end use, there are social, environmental and economic effects. We need
to improve all parts of the energy system to ensure we are getting the
best sustainability from the system.
2. Climate Change Issues
- Greenhouse gases and climate effects,
- Governments intention to ratify Kyoto responsibility in 2002.
- Our commitment is to be responsible for emissions over 1990 levels
- We can't continue as we do - we need to manage emissions
- Energy efficiency reduces CO2
- Renewable energy reduces CO2
3. Better Outcomes for New Zealand
New Zealand is overlooking opportunities that other nations are
actively pursuing and capturing as a result of their energy efficiency
programmes, namely:
- Health and lifestyle improvements
- Enhanced clean green image
- Business opportunities
- Enhanced competitiveness
We need to capture these wider benefits for the nation.
Government Energy Policy
Government is committed in its existing policy to delivering these
principles, which have been included in the Draft Strategy:
- Continuing improvement in our energy efficiency
- Progressive transition to renewable sources of energy
Draft Strategy Goals
- Reduce CO2 emissions - Least cost CO2
compliance
- Reduce local environment impacts - Local air quality improved
- Improve economic productivity - Create jobs, more competitive
- Promote industry development - Renewable energy businesses
- Improve economic resilience - More stable fuel prices
- Reduce energy deprivation - Warm homes for everyone
Energy Efficiency Target
20% improvement in economy-wide energy efficiency by 2012. The
proposed measures get close but it's a stretchy do-able target
- Can we push any harder?
- Should we push any harder?
International experience suggests that this is a sustainable rate.
Measuring the Target
There is still a lot of work to do to finalise this. We are
currently developing a robust economy wide methodology that will:
- Factor in sectoral progress
- Develop an index for each sector, some subsectors, programmes (eg
GEELP).
- Factor out activity, service, quality changes so that we can
measure real technical energy efficiency
Renewable Energy Target
We should increase the renewable energy supply by a defined quantity
by 2012. There is already high renewable supply but it is a declining
percentage of total energy supply. We suggest that:
- It is illogical to 'lose ground'
- There is no sign of the 'market' progressing renewables
The Strategy team concluded that a realistic mechanism and target
for renewable supply was warranted and should include a broad range of
renewable options.
Electricity, Solid fuel, Liquid Fuels, Heat
The Draft Strategy is asking for views on options while MfE and EECA
are commissioning research. Renewable Energy Options presented in the
Draft Strategy include:
- Negotiated Greenhouse Agreement (NGA) with industry
- Retailer Mechanism for Renewable Energy Target (MRET)
- Generator (Primary Energy) MRET
- Guaranteed price for Renewable Energy
- Tradeable fossil fuel permit
- Renewable Energy Options
Outcomes from modules
Government
Issues
- Long-term resource impacts from decisions
- International responsibilities & issues
- Balanced policies
- 'Getting your own house in order'
Objectives
- Demonstrating leadership - improve Government's energy efficiency
by 15% in 5 years
- Sustainable energy outcomes in all policy & operational
decisions
Buildings
Issues
- Buildings outlive their energy sources
- Design is a key issue
- Poor performance is measurable
- There are poor incentives for improvement
Objectives
- Upgrade energy performance of all existing buildings
- Achieve "best practice" energy performance in new buildings
Industry
Issues
- NZ earns a living from energy intensive, value-added processes
- International competitiveness is very important
- Energy efficiency = Cost saving
Objectives
- Progress to international "best practice" energy performance
- Greater use of renewable energy e.g. wood waste for energy
generation
- Greater understanding of energy processes
Transport
Issues
- Largest energy user (40%)
- 32% CO2 growth from 1990 to 1999
- Dependent on imported fuel
- Dependent on imported technologies
Objectives
- Reduce energy use through travel demand management
- Increase the use of more energy efficient and eco-efficient
vehicles and fuels
- Improve the provision and uptake of low energy transport options
Energy Supply
Issues
- Large emitter: 20% energy CO2
- 54% CO2 growth from 1990 to 1999
- Increasing use of fossil fuel
- Significant system and pricing improvements are possible
Objectives
- Increase the amount of energy from renewable sources
- Improve energy sector whole-system efficiencies
- Price signals that support sustainability
What we need to know
- What do you think of the direction?
- Is the target right for New Zealand?
- Measures adequate for the target?
- Is the mix of 'sticks' and 'carrots' correct?
- Views on a mechanism for renewable electricity growth?
- What should be there - but isn't?
Get the full story
- Introduction to the Draft Strategy
- Draft Strategy
- Supporting Information
- International experiences
- Measuring the target
- Renewables mechanism options
- Module papers
The complete draft strategy document is available from the EECA
website at http://www.eeca.govt.nz/
along with a number of supporting papers.
Submissions on this document were accepted up to 1 June 2001 and a
finalised strategy is due to be released by 1 October 2001.
For futher information, the EECA may be contacted at:
Energy Efficiency and Conservation Authority
PO Box 388
Wellington
Freephone: 0800 111 127
Email: strategy@eeca.govt.nz
Website: www.eeca.govt.nz
