Mallard told the 200 or so delegates that a realistic answer to New Zealand’s future energy requirements would be a mix of generation types, along with sensible and realistic compromises in the conditions under which they could operate.
Therefore there would still need to be some more combined cycle gas stations and co-generation plants, “but the increasing emphasis on renewable energy will ensure progress, overall, towards environmental sustainability,” he said.
“This government is clear on its objective. It wants to see the bulk of new generation investment go into renewable sources of power, as a central part of our move towards a sustainable energy future.”
Renewable energy already made up 29% of New Zealand's total consumer energy, but the country could do even better, according to Mallard.
“We have the target of an additional 30 petajoules per year of consumer energy from renewable sources by 2012 – there will be significant new wind, geothermal and hydro generation,” he said.
Mallard claimed the government was aware of the implications of the faltering Maui gas field and had initiated a range of measures designed to help New Zealand through to the post-Maui age.
It had facilitated the Maui redetermination, ensuring more gas could be recovered from the field, invited discussions on an open access regime for the Maui pipeline, and implemented royalty regime changes and seismic acquisition programs to improve the chances of further discoveries.
Mallard also reiterated the government’s firm anti-nuclear stance, given that the World Nuclear Association (UK) communications head Ian Hore-Lacy is scheduled to speak to delegates tomorrow.
The minister said there were the obvious safety concerns, which were particularly problematic in an earthquake-prone country such as New Zealand, and concerns about the cost of nuclear energy.
“It is expensive compared to other options we have, so why not build the cheaper options?” Mallard asked.
“Nuclear stations only come in two sizes – too big and enormous. I am told you need enough backup spinning reserve to cover the sudden shutdown of your largest plant. If you were to build a 600MW nuclear plant, you'd need to about additional spinning reserve roughly equivalent to Genesis Energy’s 350MW e3p station being built at Huntly.
“Not using it - just keeping it as backup in case other plants shut down - would obviously add tremendous cost.”
Meanwhile, Meridian Energy chief executive Keith Turner called on delegates and all New Zealanders to make up their minds what electricity projects they wanted.
“People cannot continue to rule out major power generation and transmission developments,” Turner said.
In the last year alone, the country has ruled out several major hydro developments, including Meridian’s own Project Aqua and Genesis Energy’s windfarm south-west of Auckland.
A major upgrade of the national grid and for Mighty River Power’s Marsden B coal-fired power station in Northland had also resulted in strong reaction from some in the community.
“We take electricity for granted, but if we run out that will have dire consequences for all. We can’t keep ruling things out … it’s time to start ruling some things in,” Turner said.
The first choice should be renewable fuels as the country had reliable resources of wind and water, and renewable electricity offered the best option for a secure power supply into the future, for a reasonable price, and the lowest environmental cost, he argued.
But New Zealand could get the best out of its resources and enjoy security of electricity supply only through having a strong and reliable national grid, according to Turner.
