Carbon News
  • Members
    • Login
      Forgot Password?
    • Not a member? Subscribe
    • Forgot Password
      Back to Login
    • Not a member? Subscribe
  • Home
  • New Zealand
    • Politics
    • Energy
    • Agriculture
    • Carbon emissions
    • Transport
    • Forestry
    • Business
  • Markets
    • Analysis
    • NZ carbon price
  • International
    • Australia
    • United States
    • China
    • Europe
    • United Kingdom
    • Canada
    • Asia
    • Pacific
    • Antarctic/Arctic
    • Africa
    • South America
    • United Nations
  • News Direct
    • Media releases
    • Climate calendar
  • About Carbon News
    • Contact us
    • Advertising
    • Subscribe
    • Service
    • Policies

Investment positive - but still hurdles to overcome to reach renewable electricity target

9 Aug 2023

 

By Ralph Sims

It’s been a good week for encouraging the uptake of renewable electricity generation in order to get closer to the Government’s 100% target by 2030.

As reported in Carbon News yesterday, the Government has begun to speed up the consenting process for selected renewable electricity generation projects, initially for three wind farms totalling 419 MW capacity and nine solar farms totalling 1147 MW.

 

Assuming capacity factors of 45% for wind and 15% for solar, then the total annual generation from these projects could reach around 2.8 GWh. This is about 6% of our total current generation. So these projects, if developed, could help reach a share of around 90% of renewable electricity over the next few years.


Interestingly, there are already around 2000 MW of wind farms and geothermal projects that have received consents over the past few years but have not yet been built. This is mainly due to having had a steady national demand for electricity over the past decade, in spite of the  growth in population, since demand has been partly offset by improved energy efficiency measures.


Future demand growth is likely to increase more rapidly over the next few years due to the increasing conversion of coal and gas boilers to electro-thermal technologies such as high temperature heat pumps and the increase in electric vehicles, including  buses, scooters, E-bikes, ferries, trucks  as well as cars.


So yesterday’s announcement of the $2 billion climate infrastructure fund offered by global investment company Blackrock (at unknown terms of lending) that aims to encourage private investments in “green energy options” could be timely. Solar, wind, green hydrogen and battery storage projects are listed in the Government’s press release but it seems possible other generation technologies, such as bioenergy or geothermal, could also be included.


Dry year and market challenges


However, to get closer to the 100% renewable electricity target (Norway is already at 98%), even with this new investment fund and the relaxed consenting rules that together aim to accelerate renewable generation projects, two problems remain:


1) achieving grid stability in dry years with MBIE’s  “NZ Battery” report, including the costly Lake Onslow option, yet to be completed; and


2) the wholesale electricity pricing market model being dominated by the four major gentailers that tend to protect their businesses by having a powerful lobby to Government. Will more new entrants to the market be welcomed?


Overall, the BlackRock investment has the potential to be beneficial for the growth of the  renewable electricity industry. But the Government will need to have a good understanding of the complexities of the generation system and the market.


Just having a pot of money suddenly available to throw at encouraging proposed generation projects will only solve part of the problem.


Ralph Sims is Emeritus Professor, Sustainable Energy and Climate Mitigation at Massey University, and is a former IPCC lead author.

print this story


Related Topics:   Energy Low carbon Technology

More >
Energy
More >

NZ must strengthen energy system

Tue 19 Aug 2025

New Zealand must keep strengthening its energy system if it is to remain competitive on the world stage while moving towards net-zero emissions, according to a new benchmarking report from the BusinessNZ Energy Council.

Heat pumps could cut household energy bills by $1.5 billion a year

12 Aug 2025

By Liz Kivi | Heat pumps could save Kiwi households hundreds of millions of dollars each year, as well as freeing up energy for industrial users, according to a new report.

Gas pressure intensifies

12 Aug 2025

The pressure from reduced gas supply is pushing industries that rely on cheap gas out of the market in favour of those who can afford to pay more.

Huntly Power Station

Gentailers to stockpile coal under new deal

5 Aug 2025

By Shannon Morris-Williams | An agreement between New Zealand’s four major electricity generators to establish a 10-year fuel reserve is being labelled a 'climate change stockpile', and could undermine momentum for renewable energy investment.

Waitaki Hydro Dam

Warmer end to winter but dry spell expected over southern lakes

5 Aug 2025

As hydro lake levels hover just below average levels, climate forecasts indicate that warmer than usual weather conditions will reduce demand, but there will likely be less rain over the southern hydro lakes as New Zealand moves towards spring and summer.

Geothermal power station near Taupō

A modest geothermal strategy

31 Jul 2025

By Pattrick Smellie | The Government has unveiled a far more modest geothermal energy strategy than its primary backer, Resources Minister Shane Jones, had sought.

Resources Minister Shane Jones

Last minute change to oil and gas legislation over cleanup costs

31 Jul 2025

By Liz Kivi | The government is expected to repeal the oil and gas ban today, with a last-minute amendment handing discretionary power to two ministers over the controversial issue of decommissioning.

Hiringa chief executive Andrew Clennett

Hiringa eyes green methanol plant near Whanganui

29 Jul 2025

By Pattrick Smellie | Green hydrogen pioneer Hiringa Energy is deep in planning to develop an “eight-to-nine figure” methanol plant near Whanganui, using a combination of biomass and hydrogen produced using renewable energy.

Taranaki mayors want hydrogen kick-start from Wellington

28 Jul 2025

By Craig Ashworth, Local Democracy Reporter Taranaki mayors want central government to partner up with their councils to kick-start a hydrogen industry. This despite ongoing questions about the gas’s effectiveness in reducing carbon emissions.

Electricity Authority’s first steps towards market reform

28 Jul 2025

The Electricity Authority announced its first decision in the raft being considered by its Energy Competition Taskforce work with the Commerce Commission.

Carbon News

Subscriptions, Advertising & General

[email protected]

Editorial

[email protected]

We welcome comments, news tips and suggestions - please also use this address to submit all media releases for News Direct).

Useful Links
Home About Carbon News Contact us Advertising Subscribe Service Policies
New Zealand
Politics Energy Agriculture Carbon emissions Transport Forestry Business
International
Australia United States China Europe United Kingdom Canada Asia Pacific Antarctic/Arctic Africa South America United Nations
Home
Markets
Analysis NZ carbon price
News Direct
Media releases Climate calendar

© 2008-2025 Carbon News. All Rights Reserved. • Your IP Address: 216.73.216.149 • User account: Sign In

Please wait...
Audit log: