NZ needs more renewable energy if 2050 carbon goal is to be met.
By Mike Fuge, Contact CEO
This article has been prepared by Contact and is being published by NZME as advertorial.
Net carbon zero by 2050 – our collective goal for the future. If it sounds ambitious, it's because it is. But, with the right planning in place, it's also something we can achieve.
Over the past 30 years, I've witnessed significant change in the energy industry and I know we have the power to lead the charge in building a better Aotearoa for the next three decades too. My career has run the full gambit across the energy industry, now at the helm of Contact – a role that puts me at the forefront of our transition to a net carbon zero future.
While our own electricity sector is already 85 per cent renewable generation, that only represents 28 per cent of New Zealand's total energy mix. We need to build more renewable energy, and fast, to aid the transition of the country to meet these targets.
We can work together to make Aotearoa a better place to call home. We've already made huge strides toward improving outcomes for our people and together, we have the power to meet our ambitious goals for the future.
We care about the legacy we leave behind for our children and grandchildren and we're a business that has always thought a long way ahead. Already we are making a difference – our latest investment in two new geothermal power stations in Taupō will increase New Zealand's total renewable electricity supply by more than 5 per cent.
Meanwhile, the closure of our Te Rapa gas-powered station in June 2023 is expected to reduce Contact's emissions by 20 per cent. That is equivalent to taking 44,000 petrol-fuelled cars off the road.
We look at both sides of the equation. Through building more renewable generation as well as reducing fossil fuel generation, we will strike the balance between keeping the lights on, making our generation even greener and keeping prices down for whānau across the motu.
This careful balancing act is not just words. Once we bring the Tauhara geothermal power station online in late 2023, we will work to decommission the Taranaki Combine Cycle power station in 2024.
It's not all build and decommission. We are also laser-focused on R&D to improve our current renewable generation. For example, we are starting a trial at one of our geothermal power stations, Te Huka, exploring how we can capture naturally occurring emissions released from geothermal energy production and inject them back into the earth.
An 'electrified' Aotearoa, where our country is powered by renewable, electric energy, is a very real and achievable part of our future. Advances in technology are helping to accelerate the shift toward electrification – clean, low-cost, renewable electricity is increasingly in demand.
We know we need to be curious about partnering with new businesses to help lower emissions across all sectors of our country.
Our immediate future sees population growth, gradual growth in the electric vehicle fleet and industrial process heat where coal and gas fired furnaces are replaced by electric arc furnaces driving electricity demand. We will see the growth of geothermal, wind and solar electricity generation in Aotearoa.
We are also seeing significant opportunities in the green hydrogen space and we are making solid steps with our Southern Green Hydrogen partners toward this future. Hydrogen for use in heavy transport and aeroplanes will be realistic in the next 10-15 years and we are committed to making sure Aotearoa can meet this growing demand.
However, despite the strides we are making in the renewable generation field, it's no secret that we have a lot more to do to transition to net carbon zero.
We all know the vision for a better Aotearoa is ambitious. 2050 might feel like a long way off but if we are to meet these audacious goals, we need to act now.
As a collective, we have a responsibility to ensure our rangatahi don't feel the impact of poor decisions for years to come. A lot can change in 28 years and we owe the next generation the opportunity to grow up in a better, greener Aotearoa.