New Zealand gears up for offshore wind launch amid energy crisis
Energy crisis caused by a dry summer that crippled hydropower production has galvanised efforts to get offshore wind sector up and running
New Zealand is introducing a bill to launch offshore wind development next year, following Australia’s successful effort to get its sector off the ground.
The government in Wellington announced this week that it will push through a series of reforms to make it easier and cheaper to consent and build renewable energy projects.
“New Zealand has an exciting future powered by clean and green renewable electricity, buttressed by fossil fuels,” said energy minister Simeon Brown.
The government will introduce a bill to enable a regime for offshore renewable energy to be in place by mid-2025, with the aim of opening a first feasibility permit round later that year.
“This regime will give developers greater confidence and certainty to invest and will enable the selection of developments that will deliver the most benefit for New Zealand,” a government statement read.
Other planned reforms include a fast-track approval and permitting regime for major renewable energy and transmission projects; and a move to reduce consent processing time for green projects.
In a research note, New Zealand law firm Russell McVeagh said the design of the offshore wind regime purports to “borrow the best” from more mature regimes in the UK, the Netherlands and Denmark.
The government has indicated that it wants to pass the law and launch its offshore renewable energy regime quickly to allow developers to align activities and supply chains with Australia, said the law firm.
New Zealand has recently been facing record gas and power prices, partly due to low water levels at its hydropower facilities, which make up around 60% of its electricity production.