Russel Norman

Energy strategy blues

by Russel Norman

So the Government has released its draft energy strategy. And I see that Contact are happily predicting that it will have no effect on their decision to build the Otahuhu C gas fired station. It strikes me that the energy strategy is not going to be particularly effective at producing renewable electricity generation if it has no effect on building fossil fuel generation.

So what are the characteristics of this draft strategy:

1. The energy strategy is not a strategy yet – all the decisions have yet to be made. There are few concrete actions proposed, and a lot of “consider” and “support”.

This is especially true of transport where a lot of policy initiatives are under consideration but there is no analysis of them or what they would achieve. Of the 12 “action” points on page 30, two of the action points are consultations, five action points are actually just things to “consider”, two action points are things to investigate, and one action point is to do some monitoring. One action point is to “increase support” for public transport but no numbers and the final one is to increase the size of our oil reserve, which is fine but does nothing for sustainability.

2. It sets out the principle that it is “preferable” that all new electricity generation should from now on come from renewable resources and there is a very interesting graph on page 25 which shows that large amounts of wind, geothermal and hydro generation are cheaper than gas or coal even without a carbon price. This shows we have the resources to achieve a renewable electricity system – however there are no mechanisms to ensure it happens. For that we have to turn to the two climate change papers released at the same time.

3. The climate change papers are largely a repeat of what was done around 1994 when there was a major public consultation exercise on the relative merits of carbon charge and emissions trading. Nothing came of that – will anything come of this?

4. After the round of public consultation there will be ANOTHER consultation document produced well into next year. Will there be any policy by the start of the Kyoto period?

Published in Environment & Resource Management by Russel Norman on Tue, December 12th, 2006   

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