26 Sep 2005

The New Zealand Business Council for Sustainable Development has issued a report to stimulate debate about the options for energy needs in 2050. In the report titled Energy 2050 it states that market research shows 7/10 NZ's believe there will be energy shortages in the next five years and there is no long term plan to look after energy, See the Stuff Article.

The report sets out four scenarios that could assist in diverting any enegry crisis, from burning more fossil fuels, diluting Climate Change policy to developing technologies. What is important is that the report highlights that there is currently no long-term plan to look after NZ's energy surplus.

The report recommends that NZ businesses and the Government should begin investing in technological development to meet the increasing demand for fuel. Key recommendations include developing:

• Coal-clean fuels
• Hybrid cars;
• Fuel Cell technology;
• Energy liquids from coal and gas

The Report concludes that "If we continue to rely on increasing energy use to generate growth there is a significant challenge in securing the energy and enabling technologies we need to ensure sustainability. If we alter our economy to reduce the dependency on energy, a significant transformation is required to the structure of the New Zealand economy and the way we live. Part of the challenge will be to ensure that we have the economic growth necessary to afford the changes required. To maintain or increase our prosperity, even with a transformed more energy-efficient economy, energy demand will increase. This is an acceptable option for the future and can be sustainable.

We believe that both fossil fuels and renewables will be part of New Zealand’s future energy mix, with use of renewables being broadened and environmental effects of fossil fuel use mitigated through increased efficiency in conjunction with investment in carbon capture and storage where appropriate. The appropriate policy environments need to exist to encourage and support this transition. Sustainable use of New Zealand’s abundant renewables and fossil fuel energy resources depends on technology developments being realised. For some energy options New Zealand will need to be at the cutting edge of commercial application. A timing mismatch between technology requirement and commercial availability could leave New Zealand exposed to risks including energy shortages or not meeting climate change targets.

Decisions made now regarding energy infrastructure have long-term consequences. These decisions need to factor in New Zealand’s long term view of the future. government must take a leadership role in ensuring that we keep our energy options open. It can act to identify and promote new technologies and innovation through focused research and development. It must also help to co-ordinate the decisions of strategic significance to New Zealand by providing consistent policy signals and ensuring the planning process used allows for the development of energy infrastructure and fast take-up of better energy options as they emerge"