Energy Resources welcomes new energy report

Energy Resources Aotearoa has welcomed the release of the BCG’s 'The Future Is Electric' report, commissioned by New Zealand’s leading electricity generation companies, as a thoughtful contribution to the energy policy discussion.

Chief Executive John Carnegie says the report adds to a growing chorus of voices across the sector calling for a stable, predictable, market-led transition to a low-emissions economy.

"The report’s preferred pathway shows the significant national benefits that accrue if we drive the transition through smart investment in a mix of demand and supply side solutions."

"It also echoes the findings of our own 'Fuelling the Energy Transition' report, which showed a sustained role for fast-start gas peaking generation through the coming decades."

Carnegie says the new report makes a compelling case for the role of electricity, underpinned by natural gas, in securing New Zealand’s energy independence amid global headwinds and uncertainty. The report shows at least 200 MW of natural gas peaking could be required to secure an affordable energy transition and our energy independence.

"We are lucky to have natural gas as a domestic fuel source that perfectly complements our renewables. Natural gas functions as an important backstop when the wind doesn’t blow, the sun doesn’t shine, or the rain doesn’t fall. Its role will become more widely recognised as transport and heavy industries become increasingly electrified."

Carnegie also points out the report adds to growing evidence that the Lake Onslow pumped hydro scheme, and the aspirational 100% renewable electricity target, are not the best way to deliver our future energy system.

This new report is indicative of an electricity sector and wider energy sector that is solutions focussed and willing to engage and collaborate with government to solve the country’s energy and climate challenges.

"Our 'Energy Resources Sector Net Zero Accord' codifies a commitment from the leading oil and gas companies to work with each other and with government to play a key role in reducing New Zealand’s energy emissions.

"We invite all energy sector participants to join the Accord and use it as a platform to collaborate with the Government on its Gas Transition Plan and National Energy Strategy."

"This kind of unprecedented collaboration is just what we need to deliver the orderly energy transition envisaged by 'The Future Is Electric'."