Reforms to Accelerate Renewable Energy Development and Electrification

Minister Brown highlighted New Zealand's promising future powered by renewable electricity, supported by fossil fuels as necessary.

The New Zealand Government has announced a series of reforms aimed at making it easier and more cost-effective to consent, build, and maintain renewable electricity generation, as well as to improve electricity distribution and transmission. The reforms, spearheaded by RMA Reform Minister Chris Bishop and Energy Minister Simeon Brown, are part of the Government’s broader plan to electrify New Zealand's economy and achieve Net Zero emissions by 2050.

Minister Brown highlighted New Zealand's promising future powered by renewable electricity, supported by fossil fuels as necessary. "Electrifying New Zealand’s economy is central to our strategy to grow the economy, reduce emissions, and enhance energy security," he said. The Government’s Electrify NZ plan focuses on harnessing New Zealand’s abundant renewable energy resources to power transportation and manufacturing, thus driving economic growth while combating climate change.

However, achieving these ambitious goals requires fundamental changes to New Zealand's planning and regulatory frameworks, according to Minister Bishop. "The current consenting process is too costly and time-consuming, making it difficult to attract the necessary investment in renewable energy infrastructure," he stated. A study by Sapere for the Infrastructure Commission found that developers collectively spend $1.29 billion annually on consenting, with costs rising by 70 percent since 2014. The current system, Minister Bishop noted, is inadequate for meeting New Zealand’s energy security and climate objectives.

To address these challenges, the Government's Electrify NZ plan includes several key initiatives:

One-Stop-Shop Fast-Track Approvals:The Fast-track Approvals Bill, currently before the Environment Select Committee, aims to streamline the consenting process for major renewable energy and transmission projects. The bill is expected to become law by the end of the year, providing a more efficient pathway for project approvals.

Amendments to the Resource Management Act (RMA):Proposed amendments to the RMA will reduce the processing time for renewable energy consents to within one year and extend the default lapse periods for these consents from five to ten years. The Government also plans to increase the default consent duration to 35 years. These changes will be part of the second Resource Management Amendment Bill, set to be introduced later this year.

Stronger National Direction for Renewable Energy:The Government is advancing changes to the RMA to make it easier to amend national direction instruments. Once passed, amendments will be made to the National Policy Statements for Renewable Electricity Generation and Electricity Transmission to make them more directive and supportive of renewable energy projects.

New Offshore Wind Energy Regime:A new regime for offshore renewable energy will be established by mid-2025, with a first feasibility permit round expected in late 2025. This initiative aims to provide greater certainty for developers and facilitate the selection of projects that offer the most benefit to New Zealand.

Updated Regulatory Settings for Electricity Networks:The Commerce Commission and the Electricity Authority are working on updating regulatory settings to support the shift to electrification, including enhancing the infrastructure for electric vehicles.

These reforms are designed to make renewable energy development more efficient, ensuring that New Zealand can meet its energy needs and climate goals while fostering economic growth.