Source: Energy Resources Aotearoa
Experts from the NZ energy sector have raised the alarm on massive looming investment requirements in New Zealand’s energy system. Energy Resources Aotearoa joins these experts in urging Government and industry to remove regulatory and commercial barriers standing in the way of delivering affordable and reliable energy.
Speaking at the Downstream24 conference today, representatives from Orion, BlueFloat Energy, Mafic Partners, and Forsyth Barr all agreed that New Zealand needs to rapidly scale up investment in energy systems and new generation if the country is to keep the lights on while reducing emissions.
Energy Resources Aotearoa Chief Executive John Carnegie, who hosted the panel, highlighted the immense scale of investment required.
‘A recent report suggested that should New Zealand no longer use natural gas to generate electricity we will require approximately 530 MW of new generation capacity every year until 2050.
‘This is equivalent to 125 wind turbines or 1.3 million new solar panels every year.
‘Those are some seriously big numbers in an increasingly short space of time, and this simply isn’t realistic without imposing massive unnecessary costs on energy users.’
‘All options need to be on the table to ensure that new investment is cost effective and places downward pressure on prices.’
When asked about the access to capital, the panel agreed that there are a range of regulatory and commercial barriers, including ownership structures, cost of debt, pace of investment and returns, and skills retention.
Mr Carnegie says that New Zealand needs to clear away regulatory and consenting hurdles, facilitate new technologies, promote the sector, and provide for long term employment opportunities.
‘Investment will need to increase exponentially for our sector to meet demand in a secure, reliable, and affordable way. We have heard that the money is here for renewables, so the goal now is to smooth the way for investment in all forms of energy infrastructure to come forth rapidly.’
About Energy Resources Aotearoa
Energy Resources Aotearoa is the peak industry body for energy intensive businesses, from explorers and producers, to distributors, sellers, and users, of energy resources like oil, LPG, natural gas, refined products, and hydrogen.
About Downstream24
Downstream is New Zealand’s leading event for the energy industry and brings together international influencers and local leaders to share strategic insights into New Zealand’s current energy challenges and opportunities.
About panelists
Today’s conversation included the following significant voices in the New Zealand investment and energy sectors:
- Laura Harris is a Partner at Mafic Partners, an advisory firm providing financial and commercial advice to clients in the infrastructure and renewable energy sectors, and Government.
- Justine Gilliland is Partnerships Director for the BlueFloat Energy and Elemental Group offshore wind energy partnership
- Andrew Harvey-Green has been a Forsyth Barr electricity analyst for 16 years, providing investment advice on electricity stocks to fund managers and Forsyth Barr investment advisors.
- Nigel Barbour has been the Orion Group Chief Executive since July 2021. The Group comprises Orion’s central Canterbury electricity distribution business and wholly owned subsidiary, Connetics.
