Govt Releases Policy Statement to Ensure Affordable, Secure Electricity for NZ

The GPS sets out the Government’s role in facilitating a stable investment environment to attract private investment in renewable energy.

The Government has released its Government Policy Statement (GPS) on electricity, outlining a clear strategy to ensure affordable and secure electricity for Kiwi households and businesses at internationally competitive prices, Energy Minister Simeon Brown announced today.

Minister Brown emphasized that New Zealand’s economic growth relies heavily on secure, cost-effective electricity. “Affordable and secure electricity is a top priority for the Government. Our aim is to ensure a more competitive, fuel-agnostic electricity sector that serves the long-term interests of consumers and avoids excessive prices,” he said.

Key Focus: Electrification and Renewable Energy

With increased electrification of sectors like transport and process heat expected in the coming years, demand for electricity is set to rise as New Zealand shifts from imported fuels to domestically generated power. In response, the Government has committed to doubling renewable electricity generation to meet the rising demand. This will include enabling more distributed electricity generation, bolstering regional resilience, and ensuring the security of supply.

The GPS sets out the Government’s role in facilitating a stable investment environment to attract private investment in renewable energy. “The certainty provided by the GPS will create a favourable climate for investment, driving both affordability and security of supply,” Brown added.

Role of the Electricity Authority

The Electricity Authority is now tasked with implementing market settings that promote private sector investment and help consumers benefit from energy supply innovations. Minister Brown noted that previous government interventions had driven prices up and discouraged investment, but the new GPS confirms the Government’s focus on creating the right conditions for private sector participation.

“The GPS provides a roadmap for the Electricity Authority to ensure the electricity market is competitive and meets future demands,” Brown stated.