We don’t need an aspirational target, we need an energy strategy.

KPMG’s latest report, 30 Voices on 2030: The future of energy in Aotearoa, interviews 30 energy innovators and industry leaders to paint a fascinating picture of how Aotearoa New Zealand’s energy sector might look in 2030.

Innovation is high, but often happening under the radar.

Views on how the market operates in New Zealand were varied, with the larger, vertically integrated retailers the happiest with current settings.

Most agree that consumers will ultimately have more choices in the new energy system, however there was real concern that the benefits and costs of the transition will not be shared evenly, increasing inequality.  

Māori are up for investing and participating meaningfully. The relationship Māori have to the natural resources critical for energy generation, alongside their role as the original practitioners of sustainability and their appetite for intergenerational investments, underpins the case for their meaningful inclusion in Aotearoa’s energy industry.

Energy sector leaders told KPMG that despite New Zealand’s rich renewable resource base and natural advantages, the country faces significant challenges in its energy transition. Unrealistic renewable targets, regulatory uncertainties, high costs, the lack of an energy strategy and an “unjust” transition are just a few of the concerns raised – and which the incoming government might wish to heed. 

We very clearly heard we don’t need an “aspirational target”, we need an energy strategy. No one believed New Zealand would meet a 100% renewable electricity generation target by 2030, and attempting to do so will just hold us back, says Greg Bishop, KPMG Partner and Energy Industry Co-leader.

While acknowledging the challenges, most of those interviewed for the report remain positive for the success of the transition. They highlight New Zealand’s unique strength of community relationships and partnerships which can be used to develop the energy sector’s talent base and foster new industry collaborations.  

Above all, energy leaders interviewed told KPMG that the energy transition is bringing new opportunities which New Zealand is well placed to seize. The development and adoption of new renewable power generation, energy storage, demand management and digital technologies, based on a solid strategy and facilitated through good relationships with consumers and communities, should enable New Zealand to achieve its energy goals. 

However, there was real concern that the energy transition will increase social inequality, with those least able to afford it facing higher costs of both electricity and fossil fuels. “This is a complex social issue; inequalities will likely change over time and solutions will need to be carefully thought through” says Greg. 

Time is running out.

“We need energy strategies and solutions which will help fuel prosperity for our country, not just to 2030, but beyond. The issues are known, we can no longer remain static, now is the time for action,” reflects David Gates, KPMG Partner and Energy Industry Co-leader.

 

Fiona Woolley Head of Brand KPMG New Zealand +64 21 455 331 fwoolley@kpmg.co.nz

Michelle Littlejohn Marketing Communications Senior Manager KPMG New Zealand +64 21 902 080 mlittlejohn@kpmg.co.nz