MORE HORSEPOWER FOR RENEWABLE ENERGY: NPS FOR RENEWABLE ELECTRICITY GENERATION TAKES EFFECT

Introduction

The National Policy Statement for Renewable Electricity Generation took effect on 13 May 2011. The NPS is a high-level policy document, which does not set material thresholds or targets. Rather, it gives increased recognition to the national significance of renewable electricity generation activities through direction to local authorities.

Objective of the NPS REG

The NPS has a single objective; to recognise the national significance of renewable electricity generation by providing for the “development, operation, maintenance and upgrading of” renewable generation activities to meet or exceed the national target of 90 percent of electricity in NZ being derived from renewable sources by 2025.

Reaching the Objective

That single objective is to be implemented through a number of policies. Those policies require decision-makers under the RMA to:

• Recognise and provide for the national significance of renewable electricity generation, including the following national, regional and local benefits:
  • Avoiding, reducing or displacing greenhouse gas emissions;
  • Using renewable natural resources rather than finite resources; and
  • Reversibility of adverse effects on the environment of some renewable generation technologies.
• Acknowledge the practical implications of achieving the ‘90 percent renewable by 2025’ target. This includes having regard not only to the fact that significant development of new renewable generation activities is required, but that minor reductions in output of existing renewable generation activities can have significant cumulative adverse effects on national, regional and local output.
• Acknowledge the practical constraints associated with the development of renewable generation. These include the need to locate generation where the renewable energy source is available, and the logistical or technical practicalities associated with developing or upgrading generation (including the location of the distribution network and national grid).
• Have particular regard to any offsetting measures or environmental compensation (including measures or compensation which benefit the local environment and community affected) when considering any residual environmental effects of renewable generation that cannot be avoided, remedied or mitigated.

In order to give effect to the NPS, local authorities must change or vary regional policy statements, regional or district plans (or proposed plans) no later than 13 May 2013 to include objectives, policies and methods (including rules) to provide for the development, operation, maintenance and upgrading of new and existing generation activities using hydro-electric, wind, geothermal, solar, biomass, tidal, wave and ocean current resources.

Comment

The NPS is likely to benefit applicants for resource consent for new or expanded renewable generation activities. It gives statutory standing (as a matter to which consent authorities must have regard under section 104(1)(b) of the RMA) to benefits associated with renewable generation, such as meeting the national ’90% by 2025’ target. Currently, consent authorities should consider these benefits pursuant to section 104(1)(c) in any event.

The NPS requires local authorities to provide for all types of renewable generation activities to the extent applicable in their region or district. The NPS will no doubt be an issue of considerable interest to the major electricity generators, which will need to remain informed of plan changes in particular regions/districts.