Source: BusinessNZ
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The BusinessNZ Energy Council (BEC) is proud New Zealand’s energy system remains one of the top ten globally for equitable, secure and sustainable access, but says energy security is at risk.
Each year the global Energy Trilemma Index ranks countries based on three key aspects that matter to consumers; Energy access and affordability, reliable supply, and environmental sustainability.
The index uses data to assess how policy influences performance to explore what policies work best, and in which context. New Zealand ranked eighth amongst more than 90 countries in the Energy Trilemma Index in 2022 and has consistently ranked in the top 10.
BEC Executive Director Tina Schirr says the recipe for success is in the way countries approach the Trilemma Index.
“Transitioning to a fully sustainable energy system which is secure, affordable and equitable is undoubtedly a tough balancing act. The question is not whether we should, but rather how to do it affordably, and what trade-offs we are willing to accept.”
While New Zealand has maintained its AAA-grade rating, new results show security remains New Zealand’s weakest performing aspect of the trilemma.
Schirr says there are several ways to increase energy reliability.
“One way would be to ensure a diverse energy mix, introduce more decentralised storage and play with elements such as flexibility services – all of which are in the making as we speak.
“As a small island nation, we need to reframe the narrative from ‘how to scale’ to ‘how to provide resourceful, small and smart solutions’ where we need them the most – both today and in the future.
“That means future solutions could look quite different from how we currently produce and store energy.”
Last week the Government shared its intention to extend onshore storage. Schirr says BEC is looking forward to seeing details on how this will be implemented in a sustainable and affordable way.
“Energy storage remains an important element to security of supply and finding the right balance is key.”
BEC has created an energy model – New Zealand Energy Scenarios – TIMES-NZ 2.0 – to help explore potential energy futures. The World Energy Council has also released an interactive country rankings tool for 2022.