29 Jan 2025

Work needed to remove barriers to offshore wind industry - mayors

2:38 pm on 29 January 2025
Says sales at a council subdivision are proof the town is alive and kicking.

Taranaki Mayoral Forum chair, Stratford Mayor Neil Volzke. Photo: RNZ / Robin Martin

Taranaki leaders say more work is needed to remove barriers to offshore wind industry.

The region's mayors said the Offshore Renewable Energy Bill - which was before select committee - only goes part way to realising New Zealand's potential.

In its submission on the bill, the Taranaki Mayoral Forum said it wanted to see more streamlined consenting options for offshore wind developers.

"We are supportive of more integrated consenting pathways across the RMA and EEZ Act. The Fast Track Approvals Act will provide one pathway for such consideration.

"However, considering the scale and novelty of offshore wind in New Zealand, providing developers efficient and effective options outside the fast track regime is essential."

The mayoral forum also wanted to see a better system for allocating exclusive rights for offshore infrastructure across different potential activities in the marine environment.

"Under the bill, a feasibility permit grants the holder the exclusive right to apply for a commercial permit for offshore renewable energy infrastructure.

"Yet it would seemingly be possible for another activity, such as seabed mining, to be granted consent to operate within the same area."

The region's mayors wanted more work done to provide a robust mechanism for resolving these conflicts.

They also wanted recognition of the crucial role port infrastructure had to play in the development of offshore wind.

"Port operators need certainty from developers before investing in new infrastructure. While developers need certainty from port operators that the right infrastructure exists before they and others invest.

"Government could play an important role in resolving this chicken and egg issue."

The forum also called for the government to keep an open mind on price stability mechanisms such as Contract for Difference (CFDs) that would give investors confidence to commit the capital needed for offshore wind facilities.

Offshore Renewable Energy Bill aimed to create a regulatory regime enabling firms to construct offshore wind generation and give developers greater certainty to invest, introducing a two-stage process of feasibility and construction permits.

Forum chairperson, Stratford Mayor Neil Volzke, said Taranaki had the offshore wind resources, the people and location to become New Zealand's centre of renewable energy.

"The potential benefits of offshore wind are huge, not for today but for the future. This is about ensuring New Zealand has a secure, equitable and sustainable energy sector in 10 years' time. We're excited for Taranaki to be part of that journey."

Volzke said the mayoral forum supported the bill and the direction it took on key policy matters including the two-step permitting model and the robust decommissioning provisions.

It also supported the requirements for developers to consult closely with mana whenua and that the Bill did not duplicate existing environmental laws.

However, its submission emphasised there were "other enabling factors" that required attention.

"Without addressing these other barriers, there is a real risk the work on the bill is wasted."

Volzke said the bill was a positive step forward and the forum was keen to work with the government to address the remaining barriers.

The forum has asked to speak to the Select Committee in support of its submission.

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