Offshore Renewable Energy legislation a significant step forward

Legislation to establish a permitting regime for offshore renewable energy projects is a significant step towards giving New Zealand households and businesses access to a world-class fuel source: the country’s offshore wind, says a company that wants to develop New Zealand’s first offshore wind farm.

Giacomo Caleffi, Business Development Director for the Taranaki Offshore Partnership (TOP), a joint venture between the New Zealand Superannuation Fund and global infrastructure investor Copenhagen Infrastructure Partners, says last night’s passing of the Offshore Renewable Energy Bill could see the country’s first offshore wind farm commissioned by the mid-2030s.

Over the past five years, TOP has invested some $15m into establishing the feasibility of developing a 1GW windfarm in the South Taranaki Bight. 

Mr Caleffi says the broad cross-parliamentary support for the new law would give TOP and other potential investors confidence for the future.

“It was encouraging to hear politicians from all sides of the House recognising the economic benefits offshore wind could generate,” said Mr Caleffi. “We look forward to continuing to work with the government to ensure a viable path to market exists for projects such as ours and that we are able to deliver long-term energy security for New Zealand.”

Mr Caleffi said it was also important local voices were part of the conversation to decide how developments should proceed.

 “We have put considerable emphasis on starting to work early with mana whenua and mana moana, and with other iwi, local representatives, and community groups,” said Mr Caleffi. “Broad community support is critical to getting this project under way.” 

Mr Caleffi said large-scale renewable energy generation projects such as the one TOP was proposing were essential for New Zealand to have sufficient reliable, affordable energy to meet expected future demand.

“Our proposed 1GW offshore wind farm will provide as much as seven typical onshore wind farms, or almost 7,500 hectares of solar panels. Those 4.5 terawatt hours per year connecting into the North Island network will reduce reliance on the Cook Strait cable, increase the impact of demand response, improve productivity for New Zealand industry, and inject new economic opportunities into the Taranaki region."

“It will also reduce the demand on the Southern hydro lakes to provide baseload power, allowing them to act as a giant battery and provide firming supply.”