Decision-Making: The principal government bodies charged with energy policy are the Ministry of Economic
Development (formerly the Ministry of Commerce) and the Ministry for the Environment, which has policy
oversight of energy efficiency and renewable energy policy. The Treasury advises on taxation policy which affects
energy use. Transportation policy advice is provided by the Ministry of Transport, which is undertaking work on
measures to reduce greenhouse gas emissions from the transport sector. A formal interdepartmental committee, the
Officials Committee on Energy Policy, comprising the Ministries of Economic Development, Environment, the
Treasury and the Department of Prime Minister and Cabinet, co-ordinates advice on all major energy policy
matters. The esource Management Act 1991provides the legislative framework to control the environmental effects
of all activities, including energy. The Act is primarily implemented by local government. Where central
government retains ownership of commercial activities (in the energy field this is confined to electricity
transmission and some generation and retailing) this is undertaken by state-owned independent companies. Local
government owned commercial activity is generally also undertaken by arms-length companies.
The Energy Specific Statutes and Regulations include: Electricity Act 1992, Energy Efficiency and Conservation
Act 2000, Gas Act 1992, Energy Companies Act 1992, Electricity Industry Reform Act 1998, International Energy
Agreement Act 1976, Lake Taupo Compensation Claims Act 1947, Manapouri-Te Anau Development Act 1963,
Ministry of Energy Abolition Act 1989, Petroleum Demand Restraint Act 1981, Petroleum Demand Restraint
(Regulations Validation and Revocations) Act 1981, Petroleum Sector Reform Act 1988, Electricity (Information
Disclosure) Regulations 1999, Gas Information Disclosure Regulations 1997, Electricity Regulations 1997, Gas
Regulation 1993, Crown Minerals Act 1991, Crown Minerals (Minerals and Coal) Regulations 1999, Crown
Minerals (Petroleum) Regulations 1999, General Statute and Regulation, Resource Management Act 1991, Energy
Resources Levy Act 1976.
The Government has recently made public its Energy Policy Framework which sets out the Government’s overall
energy policy objectives as outlined in the following areas: Energy Efficiency and Renewable, Climate Change,
Electricity Reforms, Gas Sector and Transport Sector Reforms. Economic and regulatory measures that are
currently under examination include: A carbon charge, Negotiated Greenhouse Gas Agreements with industry on
emissions reduction, and Forward trading in emission units.
The development of the National Energy Efficiency and Conservation Strategy and the Government’s response to
climate change and the Kyoto Protocol are all being subjected to rigorous public consultation processes.
Contributions from the nine major groups are being encouraged. For example, between August 2000 and
November 2000, the Ministry for the Environment (MfE), the Ministry of Agriculture and Forestry (MAF), and Te
Puni Kokiri (TPK) held 10 regional hui with Maori groups to increase the level of understanding on climate change
issues. In addition the private sector is represented through the electricity, gas, oil and coal industries.
Programmes and Projects: From an energy efficiency perspective EECA’s current activities deliver greenhouse
gas emissions reductions associated with the following programmes: Energy-Wise Business, Energy-Wise Homes,
Energy-Wise Information, Energy-Wise Government, Administration of the Crown Energy Efficiency Loan
Scheme, Administration of the Energy Saver Fund Grant Scheme.
Status: Energy services are accessible to all urban and virtually all rural households. Electricity reticulation to
virtually all ports of country was completed some 50 years ago. As lines to remote areas come up for renewal, they
may be replaced by remote area power systems (RAPS). Large parts of the North Island, including all major urban
areas, have reticulated natural gas available. Liquid petroleum gas (LPG) is available throughout both the North
and South Islands. Petroleum products are available throughout the country. Electricity generation relies heavily
on renewable (hydro, geothermal and a small amount of wind) and is therefore largely already sustainable. There
are no structural impediments to commercial power generation. Private sector companies operate New Zealand’s
two wind farms. New Zealand's electricity generation is dominated by renewable resources with hydropower
producing around 70-75% of annual electricity needs, depending on rainfall. Geothermal power contributes another 7%. This balance is made up by fossil fuel generation. From 1991 to 1996 Gross Domestic Product (GDP) rose by
16.9% while energy use, (measured by total consumer energy (TCE)) increased by only 11.5% - despite a 9%
increase in population. Thus, for a 1% increase in GDP, TCE used increased by only 0.68%.
New Zealand has, for more than a decade, been moving to a completely open market, including major liberalisation
of trade. Additionally a major programme of corporatisation and privatisation was undertaken from the mid-1980s.
Trade in petroleum products is completely open with both crude oil and refined oil being imported, and locally
produced condensate being exported. Because of its geographically isolated position, New Zealand’s electricity
and gas markets do not include imports or exports (although a small amount of LPG is exported). New Zealand is a
net exporter of coal. It is not considered that future trade liberalisation will affect energy allocation and
consumption patterns in New Zealand. New Zealand has no active measures to promote the international transfer
of energy related technology.
In New Zealand the barriers to the uptake of renewable energy are progressively being addressed. The national
energy efficiency and conservation strategy is currently under development. Current government policies and those
measures arising out of the Strategy are expected to significantly address various barriers, including: fixed price
charging; unclear market signa ls regarding the cost of CO2 emissions; lack of investment in renewable R&D; lack
of proven market value associated with environmentally friendly renewable energy; and lack of information about
renewable energy and government policy options.
Capacity-Building, Education, Training and Awareness-Raising: Promotional activities have tended to be quite
closely targeted initiatives, usually designed to encourage particular behavioural changes, rather than mass media
generic calls for improved energy efficiency. Much of the promotional effort is channelled through industry
associations, targeted presentations and publications designed to foster particular investments in new technology
and specific energy efficient behaviours. Energy efficiency promotional efforts are being co-ordinated with
climate change communication strategies. Central Government has undertaken no major training programmes.
Private sector and state-owned energy market participants make their own individual judgements in deciding what
capacity-building measures best suit their businesses. Energy efficiency labelling schemes should provide a
tangible basis for promotions encouraging consumers to select energy efficient products and to use them efficiently.
A wide range of publications, websites, and seminars on energy efficiency and climate change issues are made
available to a wide cross-section of New Zealander.
EECA has made available an energy focused resource kit for secondary schools entitled “Precious Joules”. A
private sector company markets an energy curriculum resource kit for primary schools. This is distributed to
schools with the assistance of line energy companies and Trusts. It includes a facilitated implementation package
for the curriculum and energy savings components. An "Energy-Wise Companies Campaign" was launched in
August 1994 and now has membership of over 600 of the largest companies in New Zealand. It promotes
commitment to energy efficiency at the top management level of companies, and to establish effective partnership
between the Government and the private sector to direct management attention to implementation of cost effective
energy efficient practices and technologies. The main features of the campaign are: a public commitment to energy
management by company chief executives through endorsement of a common charter of key principles; support
from and participation of energy suppliers; endorsement of the campaign by the Ministers of Energy, Commerce
and Environment; support from major business, consumer and environmental organisations; practical information,
advisory and secretariat support from EECA and annual awards to companies making the most significant
improvements in energy efficiency.
Information: The Energy Modelling and Statistics Unit of the Ministry of Economic Development compiles
statistical information on, and prepares projections of, energy supply and demand and greenhouse gas emissions
from the energy sector. This work is required to fulfill New Zealand’s international reporting obligations (to the
IEA, APEC, UNFCCC etc) and to aid domestic policy development. Statistics New Zealand also collects and
publishes a variety of statistics related to the Energy sector e.g. consumers price indices, producers price indices,
fuel deliveries by fuel type, coal sales, and trade statistics by fuel type, and production statistics. Energy resource
availability is described in the documents ‘Energy Outlook to 2020, Ministry of Commerce, February 2000’, and ‘New Zealand Energy Data File, Ministry of Economic Development, July 2000’. Data and analysis of New
Zealand’s energy consumption patterns is available in the document ‘Energy Outlook to 2020, Ministry of
Commerce, February 2000’.
Research and Technologies: There are a large number of bodies, from consultants to industry associations that
are actively promoting and applying the full spectrum of energy efficient technologies. Priority has been ascribed to
technologies proven overseas and having particular cost effective application in mass markets, such as energy
efficient motors and lighting systems. A limited number of energy efficiency and renewable energy technologies
are being developed in New Zealand that would contribute to the reduction of greenhouse gases emissions and
cleaner production. Some of the more innovative technologies developed recently include: WispergenGen Stirling
Cycle engine, which provides heat and power for homes and runs quietly on most liquid or gas fuels; Windflow
500, a wind turbine; Smart-Drain heat exchanger; Sawdust fired boiler; The Vortec wind turbine; Electronic load
governor for micro-hydro power generation; and A wool based insulation. The Ministry of Economic Development
is leading a review of the Petroleum Products Specifications Regulations 1998. The review will consider
consumer, industry, health, safety, environmental, and quality issues in developing recommendations for petroleum
standards that are appropriate for New Zealand. A public discussion document will be prepared and released for
public comment in March 2001.
Financing: Financing of New Zealand’s energy sector is based on a market model where companies, be they
private sector or state-owned, make individual decisions regarding new investment in their businesses. There is
significant overseas investment in New Zealand energy companies in the electricity, gas and petroleum markets.
EECA is financed by central government. The Energy Efficiency and Conservation Authority (EECA) was, in
1994, allocated an additional NZ$8.45 million over three years for specific measures targeted at improving energy
efficiency across all sectors of the economy. Future funding for energy efficiency measures were to be reviewed
towards the latter half of 1997, within the context of evolving climate change policies. EECA also manages the
Energy Saver Fund, established in 1994-95, which provides NZ$18 million over five years to promote increased
uptake of energy efficiency in the residential sector.
Cooperation: The New Zealand Government has stated its intention to ratify the Kyoto Protocol in 2002. New
Zealand also continues to participate in international negotiations over the development of rules for international
emissions trading and the assignment of credit for carbon 'sinks' - primarily plantation forests, which absorb carbon
dioxide. New Zealand is committed to participate in any international emission trading system that has
environmental integrity. New Zealand has fully implemented its obligations under the Montreal Protocol and has
ratified or is in the process of ratifying all subsequent amendments.
Development (formerly the Ministry of Commerce) and the Ministry for the Environment, which has policy
oversight of energy efficiency and renewable energy policy. The Treasury advises on taxation policy which affects
energy use. Transportation policy advice is provided by the Ministry of Transport, which is undertaking work on
measures to reduce greenhouse gas emissions from the transport sector. A formal interdepartmental committee, the
Officials Committee on Energy Policy, comprising the Ministries of Economic Development, Environment, the
Treasury and the Department of Prime Minister and Cabinet, co-ordinates advice on all major energy policy
matters. The esource Management Act 1991provides the legislative framework to control the environmental effects
of all activities, including energy. The Act is primarily implemented by local government. Where central
government retains ownership of commercial activities (in the energy field this is confined to electricity
transmission and some generation and retailing) this is undertaken by state-owned independent companies. Local
government owned commercial activity is generally also undertaken by arms-length companies.
The Energy Specific Statutes and Regulations include: Electricity Act 1992, Energy Efficiency and Conservation
Act 2000, Gas Act 1992, Energy Companies Act 1992, Electricity Industry Reform Act 1998, International Energy
Agreement Act 1976, Lake Taupo Compensation Claims Act 1947, Manapouri-Te Anau Development Act 1963,
Ministry of Energy Abolition Act 1989, Petroleum Demand Restraint Act 1981, Petroleum Demand Restraint
(Regulations Validation and Revocations) Act 1981, Petroleum Sector Reform Act 1988, Electricity (Information
Disclosure) Regulations 1999, Gas Information Disclosure Regulations 1997, Electricity Regulations 1997, Gas
Regulation 1993, Crown Minerals Act 1991, Crown Minerals (Minerals and Coal) Regulations 1999, Crown
Minerals (Petroleum) Regulations 1999, General Statute and Regulation, Resource Management Act 1991, Energy
Resources Levy Act 1976.
The Government has recently made public its Energy Policy Framework which sets out the Government’s overall
energy policy objectives as outlined in the following areas: Energy Efficiency and Renewable, Climate Change,
Electricity Reforms, Gas Sector and Transport Sector Reforms. Economic and regulatory measures that are
currently under examination include: A carbon charge, Negotiated Greenhouse Gas Agreements with industry on
emissions reduction, and Forward trading in emission units.
The development of the National Energy Efficiency and Conservation Strategy and the Government’s response to
climate change and the Kyoto Protocol are all being subjected to rigorous public consultation processes.
Contributions from the nine major groups are being encouraged. For example, between August 2000 and
November 2000, the Ministry for the Environment (MfE), the Ministry of Agriculture and Forestry (MAF), and Te
Puni Kokiri (TPK) held 10 regional hui with Maori groups to increase the level of understanding on climate change
issues. In addition the private sector is represented through the electricity, gas, oil and coal industries.
Programmes and Projects: From an energy efficiency perspective EECA’s current activities deliver greenhouse
gas emissions reductions associated with the following programmes: Energy-Wise Business, Energy-Wise Homes,
Energy-Wise Information, Energy-Wise Government, Administration of the Crown Energy Efficiency Loan
Scheme, Administration of the Energy Saver Fund Grant Scheme.
Status: Energy services are accessible to all urban and virtually all rural households. Electricity reticulation to
virtually all ports of country was completed some 50 years ago. As lines to remote areas come up for renewal, they
may be replaced by remote area power systems (RAPS). Large parts of the North Island, including all major urban
areas, have reticulated natural gas available. Liquid petroleum gas (LPG) is available throughout both the North
and South Islands. Petroleum products are available throughout the country. Electricity generation relies heavily
on renewable (hydro, geothermal and a small amount of wind) and is therefore largely already sustainable. There
are no structural impediments to commercial power generation. Private sector companies operate New Zealand’s
two wind farms. New Zealand's electricity generation is dominated by renewable resources with hydropower
producing around 70-75% of annual electricity needs, depending on rainfall. Geothermal power contributes another 7%. This balance is made up by fossil fuel generation. From 1991 to 1996 Gross Domestic Product (GDP) rose by
16.9% while energy use, (measured by total consumer energy (TCE)) increased by only 11.5% - despite a 9%
increase in population. Thus, for a 1% increase in GDP, TCE used increased by only 0.68%.
New Zealand has, for more than a decade, been moving to a completely open market, including major liberalisation
of trade. Additionally a major programme of corporatisation and privatisation was undertaken from the mid-1980s.
Trade in petroleum products is completely open with both crude oil and refined oil being imported, and locally
produced condensate being exported. Because of its geographically isolated position, New Zealand’s electricity
and gas markets do not include imports or exports (although a small amount of LPG is exported). New Zealand is a
net exporter of coal. It is not considered that future trade liberalisation will affect energy allocation and
consumption patterns in New Zealand. New Zealand has no active measures to promote the international transfer
of energy related technology.
In New Zealand the barriers to the uptake of renewable energy are progressively being addressed. The national
energy efficiency and conservation strategy is currently under development. Current government policies and those
measures arising out of the Strategy are expected to significantly address various barriers, including: fixed price
charging; unclear market signa ls regarding the cost of CO2 emissions; lack of investment in renewable R&D; lack
of proven market value associated with environmentally friendly renewable energy; and lack of information about
renewable energy and government policy options.
Capacity-Building, Education, Training and Awareness-Raising: Promotional activities have tended to be quite
closely targeted initiatives, usually designed to encourage particular behavioural changes, rather than mass media
generic calls for improved energy efficiency. Much of the promotional effort is channelled through industry
associations, targeted presentations and publications designed to foster particular investments in new technology
and specific energy efficient behaviours. Energy efficiency promotional efforts are being co-ordinated with
climate change communication strategies. Central Government has undertaken no major training programmes.
Private sector and state-owned energy market participants make their own individual judgements in deciding what
capacity-building measures best suit their businesses. Energy efficiency labelling schemes should provide a
tangible basis for promotions encouraging consumers to select energy efficient products and to use them efficiently.
A wide range of publications, websites, and seminars on energy efficiency and climate change issues are made
available to a wide cross-section of New Zealander.
EECA has made available an energy focused resource kit for secondary schools entitled “Precious Joules”. A
private sector company markets an energy curriculum resource kit for primary schools. This is distributed to
schools with the assistance of line energy companies and Trusts. It includes a facilitated implementation package
for the curriculum and energy savings components. An "Energy-Wise Companies Campaign" was launched in
August 1994 and now has membership of over 600 of the largest companies in New Zealand. It promotes
commitment to energy efficiency at the top management level of companies, and to establish effective partnership
between the Government and the private sector to direct management attention to implementation of cost effective
energy efficient practices and technologies. The main features of the campaign are: a public commitment to energy
management by company chief executives through endorsement of a common charter of key principles; support
from and participation of energy suppliers; endorsement of the campaign by the Ministers of Energy, Commerce
and Environment; support from major business, consumer and environmental organisations; practical information,
advisory and secretariat support from EECA and annual awards to companies making the most significant
improvements in energy efficiency.
Information: The Energy Modelling and Statistics Unit of the Ministry of Economic Development compiles
statistical information on, and prepares projections of, energy supply and demand and greenhouse gas emissions
from the energy sector. This work is required to fulfill New Zealand’s international reporting obligations (to the
IEA, APEC, UNFCCC etc) and to aid domestic policy development. Statistics New Zealand also collects and
publishes a variety of statistics related to the Energy sector e.g. consumers price indices, producers price indices,
fuel deliveries by fuel type, coal sales, and trade statistics by fuel type, and production statistics. Energy resource
availability is described in the documents ‘Energy Outlook to 2020, Ministry of Commerce, February 2000’, and ‘New Zealand Energy Data File, Ministry of Economic Development, July 2000’. Data and analysis of New
Zealand’s energy consumption patterns is available in the document ‘Energy Outlook to 2020, Ministry of
Commerce, February 2000’.
Research and Technologies: There are a large number of bodies, from consultants to industry associations that
are actively promoting and applying the full spectrum of energy efficient technologies. Priority has been ascribed to
technologies proven overseas and having particular cost effective application in mass markets, such as energy
efficient motors and lighting systems. A limited number of energy efficiency and renewable energy technologies
are being developed in New Zealand that would contribute to the reduction of greenhouse gases emissions and
cleaner production. Some of the more innovative technologies developed recently include: WispergenGen Stirling
Cycle engine, which provides heat and power for homes and runs quietly on most liquid or gas fuels; Windflow
500, a wind turbine; Smart-Drain heat exchanger; Sawdust fired boiler; The Vortec wind turbine; Electronic load
governor for micro-hydro power generation; and A wool based insulation. The Ministry of Economic Development
is leading a review of the Petroleum Products Specifications Regulations 1998. The review will consider
consumer, industry, health, safety, environmental, and quality issues in developing recommendations for petroleum
standards that are appropriate for New Zealand. A public discussion document will be prepared and released for
public comment in March 2001.
Financing: Financing of New Zealand’s energy sector is based on a market model where companies, be they
private sector or state-owned, make individual decisions regarding new investment in their businesses. There is
significant overseas investment in New Zealand energy companies in the electricity, gas and petroleum markets.
EECA is financed by central government. The Energy Efficiency and Conservation Authority (EECA) was, in
1994, allocated an additional NZ$8.45 million over three years for specific measures targeted at improving energy
efficiency across all sectors of the economy. Future funding for energy efficiency measures were to be reviewed
towards the latter half of 1997, within the context of evolving climate change policies. EECA also manages the
Energy Saver Fund, established in 1994-95, which provides NZ$18 million over five years to promote increased
uptake of energy efficiency in the residential sector.
Cooperation: The New Zealand Government has stated its intention to ratify the Kyoto Protocol in 2002. New
Zealand also continues to participate in international negotiations over the development of rules for international
emissions trading and the assignment of credit for carbon 'sinks' - primarily plantation forests, which absorb carbon
dioxide. New Zealand is committed to participate in any international emission trading system that has
environmental integrity. New Zealand has fully implemented its obligations under the Montreal Protocol and has
ratified or is in the process of ratifying all subsequent amendments.
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