NZ must waive rules to rule waves, report says

1.00pm

Moves to tap into large amounts of wave-generated power could be boosted if the Government encouraged more generation capacity from private, distributed electricity companies, researchers at two state science companies say.

The scientists, Ian Sanders and Alister Gardiner, of Industrial Research Ltd (IRL), and Guy Penny and Richard Gorman, National Institute of Atmospheric Research (Niwa), said in a recent paper on wave energy that testing of a site a kilometre off Northland's west coast had found it to be good for wave-powered electricity generators.

IRL and Niwa have formed a consortium with Wellington energy consultant Power Projects Ltd to develop generators driven by waves, which would convert 25 per cent of a wave's kinetic energy to electricity.

However the scientists said the Government was at a crossroads and needed to decide soon whether it would actively encourage renewable and distributable electricity generation,

They said the Government should consider tilting the commercial playing field to reward generator companies that deliver extra energy at times of maximum demand - to help relieve pressure from growing demand for electricity.

"In our view, intervention is required," they say. "It is necessary for the Government to direct the new Electricity Commission to set nationwide rules that reward the capacity supplied by privately-owned distributed generation".

This could be done with existing metering technology.

In their paper the scientists ask whether the energy industry will realise wave power could not only provide electricity but create wealth through patents and manufacturing.

They say New Zealand largely missed out on opportunity 20 years ago become a world leader in wind-powered electricity, and the manufacture and export of wind generators.

At the time, New Zealand had a lot of cheap Maui gas, and the global lead on wind-power was taken by Denmark, which now earned 3 billion euros ($5.5 billion) a year from the sector, most of it from exports.

At present while independent power producers could expect to earn between 4c/kWh and 6c/kWh for the energy they sold; they were not compensated for their ability to deliver extra power at times of peak demand.

On the Northland site, the capital cost would be $3000 for a device driving a 65kW generator, and a generating cost of about 7c/kWh, without interest costs. If interest at 12 per cent was added on for the capital cost, the cost of electricity would be 13.2c/kWh, IRL said.

Monitoring at the site was used by Niwa and IRL to predict the likely performance of 11 different generators, including the cheap and efficient device they have targeted for a New Zealand prototype.

They said there were over 1500 patents around the world for extracting energy from waves, but most systems fell into six types.

So far, the most successful had been oscillating water columns, which work like a natural blowhole - waves fill a cavity, compressing air, which can then be used to drive a turbine.

Scottish-based Wavegen uses the system in the world's first commercial wave-power station, off the west coast of Scotland.

But a new generation of innovative direct-drive devices was being developed, with improved efficiency and reduced costs, and they expect to see the technology used in New Zealand.

The report predicted that a New Zealand wave energy device may be able to deliver electricity at between 10c and 20c/kWh (inclusive of project financing costs) by 2012 or 2013 - just about the time New Zealand taxpayers may have to face up to carbon taxes and other costs for greenhouse gas emissions.

- NZPA