The BusinessNZ Energy Council (BEC) is proud New Zealand’s energy sector remains one of the top ten globally for equitable, secure and sustainable access, but says energy security is a risk.
Each year the World Energy Council’s Energy Trilemma Index ranks nations based on three key aspects; Energy equity, security and sustainability. The index uses historical data to assess past energy policy performance to help explore what policies work best, in which contexts.
BEC Executive Director Tina Schirr says the recipe to success is in reframing the way countries approach the Trilemma index.
“Transitioning to a sustainable energy system which is secure and affordable – and in doing so, equitable – is a balancing act. The question is not whether we should, rather it’s 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.
“After a significant dip in energy security, New Zealand’s rating has now returned to levels seen before the pandemic.
Schirr says one way to further increase security and affordability is to ensure a diverse energy mix.
“That means future solutions could look quite different from how we currently produce and store energy. Models like distributed systems are one way to diversify the mix, with the potential to provide flexibility as well as decentralised storage.
“The Government this week has shared its intention to extend onshore storage, an important element in security of supply. BEC looks forward to seeing details on how this will be implemented.
BEC has created an energy projection model New Zealand Energy Scenarios – TIMES-NZ 2.0 to explore potential energy futures.
