New Zealand’s Offshore Renewable Energy Bill passes first reading

The Bill is part of a raft of measures introduced by the New Zealand government to speed up the electrification of the energy system in the country.

The measures will make it easier and less expensive to consent, build and maintain renewable electricity generation as well as electricity distribution and transmission systems. It is the culmination of a discussion and consultation process initiated by the Ministry of Business Innovation and Employment in December 2022.

New Zealand has significant potential sites for bottom-fixed offshore wind and what has been described as almost unlimited potential for floating wind.

New Zealand Minister of Transport, Energy and Local Government Simeon Brown said, “New Zealand currently does not have a regulatory regime for offshore renewable energy. We are progressing legislation to fix this and enable this exciting new form of energy generation.

“Establishing a regime is an important step that will give investors the confidence to construct generation assets to help power New Zealand’s increasingly electrified economy.

“Offshore wind is one of our country’s great untapped sources of renewable electricity. This legislation is a key part of helping to unlock its potential, and to support the government’s goals of doubling renewable energy and ensuring New Zealand has internationally competitive energy prices.”

The Minister continued, “Our Offshore Renewable Energy Bill will give greater certainty for developers to invest in offshore renewable energy developments by providing an exclusive ability to construct and operate offshore wind developments in offshore areas.”

The Bill introduces two dedicated offshore renewable energy permits: feasibility permits will give greater certainty to undertake feasibility studies, in a specified area; while commercial permits will enable construction and operation of offshore renewable energy infrastructure.

The Minister said the Bill also includes provisions for safety zones around infrastructure to protect people and assets, and safeguards to ensure decommissioning occurs at developers’ expense.

“I have directed officials to begin drafting the regulations required under this Bill while it is still before Parliament to accelerate the implementation of this legislation and enable offshore renewable energy development in New Zealand,” the Minister explained.

“My expectation is the offshore renewable energy regime will be in place by mid-2025 and a first round of feasibility permits will be open for applications by late 2025.

“New Zealand has significant untapped offshore wind resources, and the regime enabled through our Offshore Renewable Energy Bill will help unlock the investment in offshore wind electricity generation to grow our economy.”