National Strategy
What is the National Energy Efficiency and Conservation Strategy?
The National Energy Efficiency and Conservation Strategy (NEECS or Strategy) set the agenda for government programmes to promote greater energy efficiency, energy conservation and the use of renewable energy across the economy. Released by the Minister of Energy on 27 September 2001, the strategy focused on two national targets:
- A 20 percent improvement in energy efficiency by 2012; and
- Increasing New Zealand’s renewable energy supply to provide a further 30 petajoules of consumer energy by 2012.
Although EECA is not solely responsible for implementing it, the Strategy also drives EECA’s activities and programmes.
Review of the 2001 National Energy Efficiency and Conservation Strategy
The Act requires that the Strategy be reviewed every five years so that it can be relevant and effective in New Zealand’s dynamic energy sector. The review involved a stock take of progress with the Strategy’s action plans, an assessment of the current situation, a scan of international best practice, and a broad evaluation of the potential for improvements.
What did the review find?
The review found that the Strategy’s action plans have generally been implemented as intended and are contributing to the social, economic and environmental goals, but need to be strengthened.
The original Strategy laid the foundations, and removed barriers to the uptake of energy efficiency and renewable energy. New Zealand is now in a good position to build on these foundations.
So far, we have seen only very modest improvements in energy efficiency. To reach the existing national target would require an improvement of 2.5 percent per year, which is greater than international best practice at 2 percent. New Zealand is currently tracking at a rate of improvement of between 0.5 percent and 1 percent per year.
In March 2004, we had an additional 4 petajoules (PJ) of energy coming from renewable sources each year, and we have seen more come on line since then. However, as energy use has been growing fast, we need to keep encouraging the development of renewables which will give us all economic and climate change benefits.
In light of these findings, and because New Zealand’s energy situation has changed during the last four years, EECA concluded a replacement Strategy was both necessary and timely. This recommendation was made to the Minister of Energy.
On 30 March 2006, Trevor Mallard, Acting Minister of Energy and Jeanette Fitzsimons, Government Spokesperson Energy Efficiency and Conservation, issued a joint release announcing the decision to replace the current National Energy Efficiency and Conservation Strategy. EECA is now working on a draft replacement Strategy.
Who will be involved in preparing the new Strategy?
EECA will lead the preparation of a new Strategy, working closely with other government departments and agencies, including the Ministries of Economic Development, Environment, and Transport.
Stakeholders, including the public, will be consulted during development of the new Strategy. The Energy Efficiency and Conservation Act 2000 explicitly requires EECA, in developing a draft, to seek comments from representatives of industry and commerce, environmental and community organisations, Maori organisations, local authorities and the Parliamentary Commissioner for the Environment. The resulting draft Strategy must then be publicly notified for written submissions. EECA will consider these submissions and prepare a final Strategy for government consideration.
What does the National Energy Efficiency and Conservation Strategy cover?
It must set out the government’s policies on promotion of energy efficiency, energy conservation and use of renewable sources of energy. It also has to include objectives, targets, and describe how these, and the policies, are to be achieved.
There is an open mind on what the possible improvements on the current Strategy might be.
How does a replacement National Energy Efficiency and Conservation Strategy fit with the planned development of a National Energy Strategy?
The government announced last year that it would develop a National Energy Strategy. This will provide long-term direction and leadership to put New Zealand firmly on the path to an energy system that supports economic development, while being environmentally responsible. It will build on work done by the Ministry of Economic Development on sustainable energy.
Work on the National Energy Strategy will be the umbrella strategy that will incorporate the National Energy Efficiency and Conservation Strategy. Both the National Energy Efficiency and Conservation Strategy and the National Energy Strategy will need to take into account strategic climate change policy.
Terms of reference for the National Energy Strategy are currently being drafted by the Ministry of Economic Development.
How can I keep tabs on this?
EECA is keen to keep all interested parties informed. If you would like to be added to the contact list for this project, please email the NEECS Review Team or contact EECA’s head office on 04 470 2200
Relevant reports and research finding will be made available on this web page throughout the review process.