Government's energy efficiency strategy to be scrapped

The Government's energy efficiency strategy is failing to meet targets and will be replaced by 2007.

Energy Minister Trevor Mallard and the Government's spokeswoman on energy efficiency Jeanette Fitzsimons said the four-year-old National Energy Efficiency and Conservation Strategy would be revamped.

The strategy was meant to achieve a 20 per cent improvement in energy efficiency and increase renewable energy supply by 30 petajoules by 2012.

A review by Energy Efficiency and Conservation Authority found there had only been "very modest" improvements in energy efficiency.

To reach the 2012 target energy efficiency would have to improve by 2.5 per cent a year.

"New Zealand is currently tracking at a rate of improvement between 0.5 per cent and 1 per cent per year," the review said.

Enough new renewable energy was coming on stream to meet the target, but as the overall demand for energy increased, the percentage coming from renewable sources is actually decreasing.

Mr Mallard and Ms Fitzsimons said the original strategy had provided a solid base to build on.

"It has delivered some energy efficiency gains, but not at a sufficient rate to meet New Zealand's current and future needs," they said in a statement.

Ms Fitzsimons is not part of the Government, but gained the right to act as the spokeswoman on energy efficiency as part of the government formation talks following the 2005 election.

"The new strategy will pursue energy efficiency and renewable energy more aggressively and will aim to put New Zealand on a faster course to a sustainable energy system," Ms Fitzsimons said.

The authority largely responsible for running the current strategy would "lead development" of its replacement.

The Government is also drafting terms of reference for a review of the wider national energy strategy.

The law requires the Government to set down an energy efficiency strategy which includes targets and how they are to be achieved.

- NZPA