Media statement
For immediate release
4 May 2009

NZ can lead world in renewable energy says overseas expert

An internationally renowned energy expert believes New Zealand could generate all its electricity from renewable sources within twenty years.

“I have no doubt that with the right political will and some policy changes, New Zealand could lead the world in renewable energy and be 100 per cent renewable by 2025,” said Dr. Benjamin Sovacool, Assistant Professor at the National University of Singapore.

Dr Sovacool is backing the newly formed REFIT-NZ, a community based organisation aiming to educate New Zealanders about measures the rest of the world is adopting to deal with problems around security of energy supply and rising power bills.

REFIT-NZ promotes a renewable energy policy called the Feed-in Tariff (FIT), which if adopted, would make it easier and cheaper for New Zealanders to generate more of their own electricity from smallscale renewable sources like solar and wind power.

FITs require electricity retailers to pay consumers who produce their own renewable electricity and feed it into the national grid, a premium above normal retail rates. That way they can pay back their investment much quicker. The cost is spread over all consumers.

“It’s a relatively simple way to encourage consumers to generate their own power whether it is at home, on their farms, within their workplaces or communities. It costs the Government nothing,” said Dr Sovacool.

“Other consumers pay a small extra price, but it’s a logical step to help secure our energy future. The more renewable electricity produced locally, the fewer large coal or gas fired power stations that have to be built. It’s a win-win for the environment on so many levels."

FITs are already working successfully in over 45 OECD countries, states and provinces around the world (see table below).

New Zealand is unusual in that, unlike many OECD countries, it has no specific Renewable Energy Policy (REP) to increase the uptake of small-scale renewable energy production. This is despite the New Zealand Energy Strategy having a target of 90 per cent of electricity being generated from renewables by 2025.

“We could easily be 100 per cent renewable by then if the electricity market was truly competitive for all stakeholders, which include small-scale generators,” said REFIT-NZ Chairperson Charmaine Watts.

“Current industry legislation, regulation and infrastructure are designed for a centralised generation regime, which means electricity consumers have very little control over their electricity, whether buying or selling. FITs are a mechanism that levels the playing field for clean renewable energy.

“If 45 other developed countries can see the value of FITs, so should New Zealand,” said Ms Watts.

ENDS

Note:

REFIT-NZ is a not-for-profit, charitable trust organisation (currently pending registration under the Charities Act 2005) set up by various individuals within the New Zealand renewable electricity industry. It is canvassing for public support through the REFIT-NZ website: www.refit.org.nz

FEED-IN TARIFFS WORLDWIDE AS AT APRIL 2009: Africa Algeria Kenya Mauritius South Africa

Americas
Argentina
Brazil
Canada
Costa Rica
Ecuador
Nicaragua
United States

Asia
India
Indonesia
Israel
Japan
Pakistan
Philippines
South Korea
Sri Lanka
Thailand
Turkey
Ukraine

Australasia
Australia

Europe
Austria
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Macedonia
Malta
Netherlands
Portugal
Slovak Republic
Slovenia
Spain
Switzerland

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