Welcome back to the Energy Blog for 2023! To kick things off, we reflect on 2022, which was another milestone year for energy matters in Aotearoa. We then set our sights on what’s coming up in 2023.
Last year we saw:
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the release of the national adaptation plan and emissions reduction plan (you can read our overview of the emissions reduction plan here and here);
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the development of terms of reference for the New Zealand Energy Strategy (you can read our overview of these terms here);
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Transpower receiving a significant increase in the number of enquiries to connect new generation (with 107 generation enquiries, more than the combined total of the 6 years before that);1
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multiple large-scale solar farms in various stages of development, including UK based Harmony Energy consenting 147MW in Te Aroha West, Waikato2 and Lodestone Energy breaking ground in Kaitaia, being the first of five large solar farms;3
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a governmental announcement on the development of an offshore renewables regulatory framework (see our insights into a potential framework here);
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initial work on a roadmap for hydrogen in New Zealand (for further insights into this industry, see our interview with Dr Linda Wright, Chief Executive of the New Zealand Hydrogen Council.
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Woodside Energy selected by Meridian as the preferred partner to move forward to the development stage of the proposed Southern Green Hydrogen (SGH) project in New Zealand;4
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the introduction of the Natural and Built Environments Bill and Spatial Planning Bill to replace the Resource Management Act 1991 (see our top 10 things to know about the Bills here); and
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Transpower's consultation on its proposed Renewable Energy Zones (REZ).
2023 is promising to continue the momentum and we have set out below our top energy matters on the horizon for 2023:
|
ITEM |
WHAT IS HAPPENING |
DATE |
|
Transpower Connections Management Framework and dashboard |
Following consultation last year (in response to unprecedented connection requests), Transpower has implemented its revised application process and dashboard for <500MW connections to ensure applicants can demonstrate "project readiness" and payment of a fee before being allocated grid capacity. |
January 2023 |
|
RMA Reform – submissions due |
Submissions have closed on the Natural and Built Environment Bill and Spatial Planning Bill. The Select Committee is expected to report back to Parliament in May 2023. |
5 February 2023 |
|
NZ Battery Project |
Decision expected on the NZ Battery Project at Lake Onslow following the completion of Phase 1 feasibility studies and delay of the decisions in December last year. |
First quarter 2023 |
|
Meridian Battery Energy Storage System (BESS) |
Meridian recently announced that it would commence construction of a large-scale BESS project in the first quarter of 2023, being a 100MW system at Ruakākā. |
First quarter 2023 |
|
New transmission pricing methodology |
Transpower (New Zealand's national transmission grid owner and system operator) will implement a new transmission pricing methodology. |
1 April 2023 |
|
Consultation on a new offshore renewables regulatory framework |
Feedback can be provided on the proposed approaches to the initial feasibility stage of offshore renewables development. See here for more information. |
14 April 2023 |
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Report due on Sustainable Biofuel Obligation Bill |
Evidence on the Bill has been given at Select Committee which if passed into law would come into effect from 1 April 2024 starting with a 2.4% emissions reduction target. |
27 April 2023 |
|
National direction for climate change |
A National Policy Statement and National Environmental Standard is expected to come into force on industrial heat greenhouse gas emissions (including an immediate ban on new industrial low temperature coal burning activities). |
First half of 2023 |
|
Regulatory backstop under the Fuel Industry Act 2020 |
MBIE is developing a regulatory backstop under the Fuel Industry Act 2020, which would allow terminal gate prices of wholesale suppliers to be price regulated if the New Zealand Commerce Commission considers that excessive terminal gate prices are being offered. |
Mid 2023 |
|
RMA reform – Bills passed |
The Natural and Built Environment Bill and Spatial Planning Bill are proposed to be enacted before the general election. |
Mid 2023 |
|
Additional consultation on a new offshore renewables regulatory framework |
Feedback will be sought on the construction, operation and decommissioning phases of offshore renewables development. |
Expected mid 2023 |
|
The Electricity Authority's Code amendment prohibiting 150MW-plus electricity contracts |
With consultation closed and the Code amendment prohibiting 150MW-plus electricity contracts expiring in May 2023 the EA are set to release their decision on the Code amendment. |
Early to mid 2023 |
|
New Zealand general election |
Expect both major political parties to start rolling out their election campaign policies, which will undoubtedly impact the energy space. |
Mid 2023 to 14 October 2023 |
|
Development of the roadmap for hydrogen |
This is to set Government objectives for hydrogen in Aotearoa and how it can assist to reduce emissions and reap positive economic benefits. |
End of 2023 |
|
Gas Transition Plan |
This will set out the immediate steps on a long-term pathway to phasing out fossil gas is expected to be completed. This plan will be an input to the Energy Strategy and will explore opportunities for renewable gases and aims to ensure an equitable transition from fossil gases. |
End of 2023 |
|
Consultation on New Zealand's Energy Strategy |
This is being developed to support Aotearoa New Zealand's transition to a low emissions economy, as part of the Government's wider initiative to achieve net-zero emissions by 2050. |
Targeted consultation in 2023, with the strategy being finalised in 2024 |
|
Climate Adaptation Bill |
The Climate Adaptation Bill is expected to be introduced by the end of 2023. |
End of 2023 |