Nats Will Dump Ban On Thermal Generation And Focus On Security Of Supply
August 20th, 2008
• Gas-fired generation “essential.”
• RMA fast-track for key projects.
• Electricity Commission to go?
The National Party has announced a pragmatic energy policy, which includes gas-fired generation as part of the mix to ensure NZ has a secure electricity supply. National is promising to scrap the Govt’s 10-year moratorium on new thermal power stations if it wins this year’s election. It will also consider abolishing the Electricity Commission and will revamp the RMA to help fast-track major power generation and transmission projects. Energy Spokesman Gerry Brownlee says National’s policy is designed to focus on security of supply above all else.
Brownlee stresses while the Govt’s 90% renewables target is laudable, National “will not let it get in the way” of security of supply. He says the lesson from this winter is “thermal electricity generation is essential to keeping the lights on.” Brownlee also notes the Govt’s Reference Group on Electricity Generation found in 2006 gas-fired power stations have been consented more rapidly and decisions appealed less often than renewable projects involving new hydro, wind, or geothermal resources. He says National is also committed to introducing an Emissions Trading Scheme within nine months of taking office, which “balances our environmental responsibilities with our economic opportunities.”
National anticipates its proposed ETS will result in no new coal-fired power stations being built, unless future technologies for carbon capture and storage change the emissions profile of coal. Brownlee argues the Govt has “failed in its responsibility” to ensure secure supply. He notes this winter is the third since the current Govt came to office that NZers have been asked to seriously save power. Brownlee says National will plan for “realistic levels” of future demand growth. He notes NZ’s historical average annual increase in demand for electricity is 2.2%, but Labour is planning on just 1.2% on average to 2025. He also promises National will reform the RMA, including the introduction of “priority consenting,” which may allow some large electricity generation and transmission projects to be fast-tracked.
Other proposed changes to the RMA will include removing Ministerial veto over consents, reducing the number of consent categories, and putting an end to “frivolous and vexatious objections.” National will undertake a “careful review” of the roles of the Electricity Commission, the Commerce Commission and Transpower, to eliminate “unnecessary role duplication.” He adds “one possible outcome” of this review will be the disestablishment of the Electricity Commission.
National is also promising new measures to encourage oil and gas exploration in and around NZ. Brownlee notes more than 1.2m sq kms of NZ’s economic zone could have hydrocarbons underneath it. He estimates the country’s total petroleum potential could be up to 24bn barrels of oil equivalent. National will also support energy efficiency by making sure the Energy Efficiency and Conservation Authority and its programmes are well funded. Its policies include a solar water heating grant of $1000 per household and simplifying consent rules for solar water heating.
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