2. Question No. 2—Energy and ResourcesNAISI CHEN (Labour) to the Minister of Energy and ResourcesQuestion No. 2—Energy and Resources2. NAISI CHEN (Labour) to the Minister of Energy and Resources: What action is the Government taking to decarbonise New Zealand's economy?Hon Dr MEGAN WOODS (Minister of Energy and Resources): The Government is working hard to decarbonise New Zealand's economy to reduce costs for consumers and businesses and to meet our climate goals. This requires an integrated policy response from the Government from partnering with businesses to electrify their operations through the Government Investment in Decarbonising Industry Fund (GIDI) to boosting the number of electric vehicles. And we're making it easier to build the generation needed to power our electrified economy by removing consenting barriers through the reform of the Resource Management Act and the national policy statement (NPS) on renewable electricity generation. The NPS work is all but complete and I'm pleased to say it will be released within the month. There's plenty more work to do but we've made good progress and we'll continue to make the real action to decarbonise New Zealand through electrification. Naisi Chen: How is the Government supporting the energy sector to deliver more renewable electricity generation?Hon Dr MEGAN WOODS: Today New Zealand's electricity is 88 percent renewable with a peak of 94.7 percent. According to the Electricity Authority there are 2609 gigawatt hours of new generation committed to in 2022. Transpower has received a record number of inquiries for connection: a total of 124 for this financial year. That's double the previous year and—for comparison—they received just five inquiries in 2018-19. However we simply cannot just add more intermittent generations such as wind and solar without adding firming or baseload. To do so would not only show a complete lack of understanding of the energy sector but also would be a plan without a plan.Naisi Chen: How is the Government stimulating demand for electricity as part of its plan to decarbonise the economy?Hon Dr MEGAN WOODS: We all know that to electrify New Zealand there must be both the supply and demand for renewable electricity. With thousands of megawatts of new renewable electricity generation in the pipeline we need to give the private sector the confidence to progress these projects. That's why we—this Government—is working with businesses to electrify their operations. From food processors to building product manufacturers our partnerships through the GIDI fund will accelerate their decarbonisation journey through electrification. Industrial and process heat make up roughly a third of our energy emissions. Over the first three rounds $63 million of GIDI funding has been allocated across 51 major industrial decarbonisation projects. This has catalysed over $100 million in private funding. These projects will increase demand for electricity while reducing emissions—the equivalent of taking 130500 cars off the road.SPEAKER: That answer was far too long. I expect the next one to not be as long.Naisi Chen: What is the Government's plan for a dry year?Hon Dr MEGAN WOODS: In order to electrify New Zealand you have to have a means of storing energy. If you were not to do so—as the recent Boston Consulting Group report has shown—the cost by 2050 would be $60 billion. That is why our Government is undertaking the New Zealand Battery Project to look at how we can do this.Chris Bishop: Has the Minister seen the comments of Contact Energy that the single biggest threat to new renewables is the Government's Resource Management Act reforms and quote We could kiss goodbye our decarbonisation goals if they proceed" and will the Minister legislate to make sure that renewable projects are consented within one year?Hon Dr MEGAN WOODS: I did see those comments and of course those comments were on an early stage of the bill. Our Government has been working constructively with the electricity and the energy sector to ensure we have been working through what issues need to be addressed in the forthcoming legislation. I suggest the member talks to some of his caucus members who are on the relevant select committee."