The BusinessNZ Energy Council (BEC) says a new report on gas raises questions around how New Zealand intends to keep the lights on while transitioning to a more sustainable and rapidly approaching energy future.
Consultancy Firm EY has produced the Gas Supply and Demand Study 2023, commissioned by Gas Industry Co. The report outlines scenarios representing a range of possible futures for the industry and highlights the challenges around enhanced energy security, supply, and keeping energy affordable during transition.
BEC Executive Director Tina Schirr has recently returned from COP28 in Dubai, and says energy alternatives to gas are further progressed than some may have assumed.
“The energy sector has moved on from wondering how to bring these solutions to market in future, and are actively talking about how to adequately scale them for uptake.
“Advancements in hydrogen, sustainable aviation fuels and e-methanol are all picking up pace, with the potential to bring us ahead of the curve on our current emissions targets. That is why New Zealand needs to be having an urgent and more sophisticated discussion around future fuels, energy security and supply – now.
“But while we transition to a lower emissions energy future, gas still has a role to play. Businesses need assurance that gas will still be available to them while they invest in long-term sustainable solutions.
“Transition must be managed well, ensuring incremental investment in new technology and adequate gas supply along the way.”
The full report can be found here.