Electricity Sector Investment On Track For 1.5 Degrees

Mercury has today said that current investment committed to new renewable generation until 2025 would bring emissions from the electricity sector to a level consistent with a 1.5-degree future.

The consultation on the development of the Emissions Reduction Plan (ERP) released today seeks feedback on the contribution all sectors of the economy can make to collectively deliver on the aspirations for a low carbon economy.

“From electrification of New Zealand’s transport fleet to greater electrification of industrial processes, a reliable, low carbon, and affordable electricity system underpins many of our national ambitions,” said Vince Hawksworth, Mercury Chief Executive.

“With more than 3.8 TWh of currently committed generation projects set to be built between 2020 and 2025, the electricity sector is demonstrating real commitment to increasing the already high proportion of electricity that is generated from renewable sources, without any taxpayer subsidy.

“This level of investment is consistent with meeting the contribution from renewable electricity recommended by the Climate Change Commission in its final advice to government.”

Mercury is directly contributing through its Turitea windfarm, New Zealand’s largest. Power was generated for the first time in August and completion of the northern section is anticipated in the last quarter of 2021.

“But long-term certainty is important for even more renewable generation to be built. One windfarm every nine months is required through to 2050 to achieve net zero carbon emissions.

“This requires joined-up policy thinking from Government that supports capital deployment. Decisions that undermine the balance of risk and reward and chill investment in generation risk undermining New Zealand’s broader ambitions on decarbonisation.

“Mercury is encouraged by the recent constructive dialogue about carefully managing the transition to renewable energy as efficiently and effectively as possible. We welcome the recognition in the ERP consultation released today of just how important working together will be for achieving our national ambitions in response to climate change and Mercury stands ready to support.”

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