For the membership year April 2020 to March 2021
An extremely positive year for the wind industry and Association as decarbonisation of the energy sector beckons.
The outlook for wind energy can only be regarded as exceptional with the recent investment of over $1.3 billion and the Climate Change Commission (CCC) forecasting wind meeting 24% of total electricity demand by 2035.
A key challenge in meeting such a large growth forecast will be ensuring policies across the energy sector, climate change and environmental areas align to support new build activity.
The wind industry itself also needs to position the sector to support the projected growth with a sustained pipeline of projects ready to be built as demand increases.
In this review we look back over the past year, update the domestic and international outlook, provide an overview of NZWEA’s activities, priorities for 2021 and an overall summary.
The Association’s strategy was confirmed as focusing on three key areas:
- Leveraging New Zealand's emissions reduction imperative to enable the energy transition to renewables, particularly wind energy.
- Optimising wind energy’s position and ensuring the regulatory environment supports wind farm development.
- Expanding the opportunity for wind energy development to enable community and industrial projects including wind's integration with other technologies.
Climate change and reducing carbon emissions is now centre stage. The importance of electricity and new renewable generation to enable decarbonisation of the wider energy sector is unquestioned as is the need to act with urgency.
The imperative to strengthen the resource management system to recognise the national importance of renewable electricity generation and enable transmission remains urgent. Other important areas to progress include:
- Energy trilemma. Sustaining the energy trilemma in the transition to a higher level of renewables particularly for winter peaks and in dry years.
- Renewable Variability. Ensuring the electricity industry is able to support the variability of renewables most efficiently by encouraging demand response (DR) and distributed energy resources (DER).Retail and distribution pricing reform are key to valuing DR and DER and reducing peak demand to avoid inefficient investment in generation and transmission.
- Transmission and distribution pricing. Finalising the transmission pricing methodology to reduce uncertainty for generators.
With the right policy settings, including actions to reduce emissions, the abundance of economic renewable resources in New Zealand can be developed to support a sustained growth in electricity demand.
It is clear that the wind industry is at the forefront of an exciting future contributing towards New Zealand meeting its climate change goals.
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