Government Demand Signal Gives Energy Investors The Certainty To Move Forward With New Projects

ERGANZ welcomes today’s announcement that the Government will leverage public sector energy demand to drive new electricity generation.

The Government will pursue long-term Power Purchase Agreements (PPAs) with Health New Zealand, the New Zealand Defence Force, and the Department of Corrections - three of the country's largest energy users.

ERGANZ Chief Executive Bridget Abernethy says the announcement sends the right signal to the electricity market.

"New Zealand is in the middle of a renewable building boom. More is being invested now in electricity generation than during the Think Big era - and the momentum is only accelerating.

ERGANZ members alone have committed more than $4.3 billion in new wind, solar and geothermal projects in the past year.

A clear, committed signal from the Crown on public sector demand gives generators, particularly smaller generators, the certainty to move forward with new projects.”

Abernethy says the breadth of technologies backed by the Government - including wind, solar, geothermal, biogas, woody biomass, hydrogen and battery storage - reflects the scale of ambition required to meet New Zealand's growing energy needs.

"Getting more generation built means backing every viable technology. It's encouraging to see the Government thinking the same way as our members."

Today’s announcement adds further momentum to what is already a landmark period of investment for New Zealand's energy sector, and ERGANZ members look forward to working with the Government to ensure the pipeline of projects ready to move can do exactly that.

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