11 October 2007

Bold energy strategies rely on leading edge engineering

The Institution of Professional Engineers New Zealand (IPENZ) says world leading engineering solutions will be needed if we are to meet the targets for conversion to renewable energy as set out in the NZ Energy Strategy released today.

“Working at the cutting edge of new technologies is risky technically”, says IPENZ Chief Executive Dr Andrew Cleland. “This can lead to capital stranding if there is insufficient flexibility of approach and any shortcoming in engineering quality. The HVDC link and Manapouri Dam show that historically New Zealand has tackled technically difficult energy projects. And we can do it again – the only difference between that time and now, is the New Zealand, and indeed the world, is desperately short of engineers”.

“Whilst most engineers would agree with the broad thrust of both the NZ Energy Strategy and the NZ Energy Efficiency and Conservation strategies; our main concern is around the skills to deliver and ensuring that the actual capital investment made is economically as well as environmentally sensible. As with many parts of our infrastructure, a period of major reinvestment in skills to boost technical capacity is needed”.

“We fully agree that investment in conservation and efficiency has better payback than new generation, and are pleased to see emphasis in this area. The importance of a wider range of minimum standards for imported energy-using equipment, including vehicles, has long been advocated by IPENZ and we are pleased to see stronger actions in this area. Overall, rebuilding of a technical skill base in Government will be needed to realise the strategies”.

“We know that a major reason why economically-viable efficiency or conservation projects do not proceed is that the potential investor does not have the skills, or is unwilling to employ the skills to work out the best option. This is one area where we would have liked to see stronger recognition of the issue, and initiatives to respond in the residential sector as well as commercial sector. We would have preferred assistance in the analysis stage to subsidies of particular technologies in homes”.

“The recognition that improved energy efficiency in homes and buildings should have capital value is to be applauded. Overall there is a high correlation between the strategy and the recommendations made by IPENZ in Engineering a National Energy Strategy June 2006”.

ENDS

Notes: Engineering a National Energy Strategy was IPENZ’s proposal for developing a national energy strategy. It examined the unique energy issues peculiar to New Zealand and recommended the way to find solutions that maintain an economically viable energy supply and improve sustainability. It suggested actions in the areas of transport fuels, heating and electricity, and identifies where the biggest gains can be achieved.

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