ERGANZ CEO Bridget Abernethy has told mayors from around the country that regional leaders should support investment into energy projects happening in their communities to improve local energy resilience.
Abernethy addressed mayors on Local Government New Zealand's Metro sector, which includes many of New Zealand's largest city councils, during a panel discussion in Wellington on Thursday.
The focus of the discussion was on the role energy plays in New Zealand's economic growth and resilience, and Abernethy laid out the challenges and opportunities ahead.
"New Zealand has a strong electricity system. Our electricity is almost entirely locally produced - the current system produces around 88% of its electricity from renewable sources. But demand continues to rise, and this puts the system under pressure."
She identified the three biggest challenges for the electricity system as being reliability during rare events such as dry years, the tightening supply of gas, and the cost of timing to build new energy infrastructure. She said the sector's focus was on investing in new infrastructure and generation to strengthen New Zealand's energy security and improve the resilience of the electricity system.
"We must accept there are trade-offs between affordability and having a modern, reliable energy system."
ERGANZ members are investing in a strong pipeline of new solar, wind, and geothermal projects, as well as other products like the Huntly Firming Options (HFOs) and the largest battery energy storage systems (BESS) in New Zealand. ERGANZ members have added over ten percent of New Zealand’s total electricity generation capacity in the last four years, and plan to invest $6bn in new generation between now and 2030.
Abernethy encouraged mayors to show leadership and continue to support these projects.
"We have an opportunity to use our renewable energy advantage to strengthen our energy security and resilience. The transition to renewable electricity is necessary — but how we manage it now matters just as much as where we end up."
The panel included Energy Resources Aotearoa Chief Executive John Carnegie and Transpower Chief Executive James Kilty, who also underlined challenges and opportunities facing the sector.
