Brownlee Gerry: Estimates Debate — In Committee 
Brownlee Gerry: Estimates Debate — In Committee 
[Volume:665;Page:12706] 
Hon GERRY BROWNLEE (Minister of Energy and Resources) 
: 
 I will respond briefly to the concerns raised about the proposed New Zealand Energy Strategy before I talk more broadly about the energy sector as a whole. The first point I make is that I noted the editorial in the 
 New Zealand Herald 
 this morning but I make it clear to the Committee that I have long since given up any hope that the  
New Zealand Herald 
 might write anything positive about anything that I do. It seems to have a particular bent that I can do very little about. But I think the editorial showed that the analysis was incredibly trite. For a start the strategy is a discussion document and had there been a comparison—which we might have reasonably expected the editor of the  
New Zealand Herald 
 to engage in—considering the proposed Energy Strategy against the existing Energy Strategy I am sure that he she or whoever that anonymous person was might have been able to conclude that the new document is far more realistic for New Zealand’s current circumstances. 
The other point I make is that although we produce those documents they are merely snapshots of thinking at a time. Inasmuch as the 2007 document became rapidly out of date that possibly will be the case with the new one as well. It is just the nature of the way things happen. The salient points are that New Zealand in the last year produced 73 percent of all its consumed electricity from renewable sources and I think that trend is likely to continue in the years ahead. 
In preparing the document I was mindful that a very considerable number of consents for new capacity are granted currently. New Zealand needs about 175 megawatts of new capacity each year and that is before we start looking at any savings we might make through conservation or better use of the energy sources. As at April 2010 we have 5390 megawatts of projects currently under construction or consented to. That indicates to me that we are in a solid position as far as security of supply is concerned. Of those projects 287 megawatts are currently under construction and Contact Energy is building its new peaker project at Stratford which will be a significant fillip not only for the development of the geothermal resource but also for the wind resource as well. 
One thing that people need to understand is that apart from geothermal which is fairly consistent the other forms of renewable energy can be subject to constraint at various times because the water can run out and the wind may not blow but demand continues throughout that period. The proposed Energy Strategy attempts to balance the requirements of the nation for its thermal back-up while promoting the concept of New Zealand developing further its extraordinary renewable resources. It is a pity that the 
 New Zealand Herald 
 did not bother to come and ask some questions about it because clearly its staff did not have time to read the entire thing before they wrote their shoddy little editorial this morning. That will surprise nobody in this Chamber. 
We are also engaged in securing the quality of the transmission network in New Zealand. Since coming into Government we have approved Transpower’s expenditure of some $5 billion to strengthen that network over the coming years but most important we have embarked on a review of the way in which electricity is marketed in this country. That has led us to the new electricity bill that is currently before Parliament and I would expect to see the Electricity (Continuance of Supply) Amendment Bill passed into law later this year. The early effects of the changes that are incorporated in that bill are very very encouraging. In the year from May 2009 to May 2010 the actual price increase for electricity to retail consumers was around 2.9 percent; contrast that with the 72 percent increase over the prior 9 years. It is almost two-thirds smaller than the previous very steep price path. That is an achievement that the Government can be very very pleased about. It is a trend that we want to see continuing. I think we are in good shape as far as energy is concerned and I think the estimates show that. 
Vote agreed to.