New Zealand’s primary fuel options

The National Energy Strategy will draw on various scenarios to explore New Zealand’s energy options. The government accepts, of course, that some thermal power from fossil fuels will be needed in our energy system at least in the short to medium term. However, we must also recognise that, at some point, world oil and gas supplies are likely to become increasingly expensive. The strategy will therefore model the mix of generation types that we currently have available and are likely to have available in the future. It will also assess the scope for reducing greenhouse gas emissions by changing the generation mix while maintaining acceptable thresholds of price and security.

But I believe that New Zealand is in a better position than most. Already, 70 per cent of electricity comes from renewable sources. Our wind resources are probably second-to-none in the world and as yet are largely undeveloped. In the liquid fuels area, if biofuels are an important part of the future, its easy to conclude that New Zealand is well-placed to grow the fuel stock. And of course, independent of these possible future trends, we have fossil fuel reserves in lignite and some very plausible prospects for both oil and gas.

scoop