New Zealand Renewables Report Q2 2016
BMI View: As capacity and generation growth of New Zealand's non-hydroelectric renewable sector isforecast to remain subdued in 2016, with rates of 0.11% and 1.87% respectively, new impetus is onlyexpected to come from the retirement of thermal power plants by 2018. Stronger growth in the sector isfurther undermined by a decreasing energy demand and the lack of a governmental subsidy schemesupporting renewable installations to meet the countries energy and emission targets.
Latest Updates And Structural Trends
In November 2015, the New Zealand Ministry for the Environment initiated a review of the country'semissions trading scheme (ETS), to assess the state of the programme and devise its future developments.
The issue of including the agriculture sector in the ETS scheme was left out of the consultationdocument, a decision that caused controversy with the opposition parties due to the fact agriculture isreportedly responsible for half of New Zealand's carbon emissions.
In November 2015, Transpower, New Zealand's grid operator, said there would be an energy securityrisk following the retirement of the last 500MW of coal-fired capacity at the Huntly power station, unlessnew power capacity is built before 2019. This means investment in renewables power plants could berequired in New Zealand over the coming years as the country's power sector faces the prospect ofinsufficient supply in 2019 during periods of peak demand.
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