Jim Collings: Nation can't afford to risk putting all its eggs in one basket

Calls for New Zealand to address its energy situation have increased in volume in recent years.

The pressing need to make provisions to meet our growing demand for electricity is evident, and more recently pressure on global oil supplies has made it clearer than ever that we face a whole-of-sector and whole-of-economy-challenge.

But while the need to look at how we produce and use energy has been recognised, the question of how we respond has been clouded by competing voices.

Debate has put New Zealand in danger of falling between two stools by focusing on short-term, crisis-driven responses, or looking to solutions which, though potentially feasible in future, are not options today.

The New Zealand Business Council for Sustainable Development's study on the energy future for New Zealand offers a strategic and pragmatic assessment of the long-term options.

As a cross-industry initiative facilitated by an independent body, it provides a positive, informed and balanced platform for decision-makers to set a clear direction for a sustainable energy future.

And while policy and investment choices about how we approach the future are ultimately guided by the Government, one of the most important things about the report is that it recognises that we are all decision-makers.

While the report identifies that we must reduce CO2 emissions to address climate change, it states that biofuels are part of, but not a large- scale solution for transport (to meet just 6 per cent of our current diesel demand all of New Zealand's arable land would need to be converted to rapeseed production).

The report notes that new technologies will take time to become viable and widely available, and that behavioural and societal change are key factors.

It takes the simple but fundamental premise that energy drives growth, and matches different approaches to energy use to growth scenarios. As well as looking at desired outcomes that show sustainable solutions - affordability, security, and environmental impact -it considers the availability of existing and emerging fuel sources and the technologies required to make these possible.

The report's recommendations are as pragmatic as its approach.

We cannot afford to put all our eggs in one basket, relying significantly on single fuel sources like Maui gas as we have in the past.

We have to consider the infrastructure required to support our future energy system.

We need to use a combination of the options available, using both renewables and fossil fuels to meet New Zealand's economic and environmental goals.

The report provides a framework that will allow the Government to articulate a clear long-term direction for the energy sector. We welcome a swift response that will give industry and policy-makers time to act.

* Jim Collings, senior downstream representative general manager, commercial, Shell New Zealand.