New Zealand Wind Energy Conference

8 April 2008

Hon. David Parker

Minister of Energy

NZ Energy Strategy: Our vision

A reliable and resilient system delivering

New Zealand sustainable,

low-emissions energy

Renewable electricity target

90 per cent of electricity from

renewable sources by 2025

Renewables future makes economic sense

New Build Generation Costs

Forecast electricity generation

Forecast electricity generation

0

10000

20000

30000

40000

50000

60000

2005 2010 2015 2020 2025 2030

GWh

Thermal

Renewable Source: Ministry of Economic Development

Electricity emissions reduction opportunities

Role of fossil fuel generation

• Fossil fuel generation – particularly gas – has a role to play

But:• Electricity Act changes

will limit new fossil fuel baseload generation for next 10 years

Integration of wind power

• EC tactical project – to cope with immediate changes

• EC Wind Generation Investigation Project – further integration over next five to ten years

Key actions for renewables

• National policy statements on -

renewable electricity generation

electricity transmission

- to provide guidance for councils

• Call-in powers available

Concluding comments

Questions…