The Boston Consulting Group says moving the country to 98 percent renewable electricity energy by 2030 will deliver emissions cuts faster than put forward by the Climate Change Commission. Photo: (Photo by Monty Rakusen / Cultura Creative / Cultura Creative via AFP)
The country should invest $42 billion in new electricity generation, distribution, storage and other technologies by the end of the decade to more quickly decarbonise the economy, according to a new report.
The Boston Consulting Group was commissioned by the big four power generators and several lines companies to look at future options.
It said it had taken a 'holistic' approach to deliver greater and faster reduction of emissions and development of renewable electricity.
It said moving the country to 98 percent renewable electricity energy by 2030 would deliver emissions cuts faster than put forward by the Climate Change Commission.
"Deep, rapid decarbonisation at the lowest cost to consumers relies on a swift build of renewable generation," the report said.
It said this would mean overbuilding on renewable energy, greater use of battery storage, and some residual use of coal and gas fired stations, which would increase prices, but the impact on household bills would be limited by increased energy efficiency.
The report's $42b estimate was made up of $10.2b in large scale renewable generation, $1.9b in flexible generation to meet peak demand and dry years, $8.2b for network transmission including a new Cook Strait cable, and $22b for local distribution.
"Our modelling shows that it makes economic sense for New Zealand to reach 98 percent renewable electricity by 2030. This, combined with accelerating electrification of transport and heat, will deliver 8.7 million tonnes of CO2 equivalent of emissions reductions in 2030."
It said these targets were attainable if investment incentives favoured renewable projects, overseas investors were brought in to fund such projects, investment was in advance of the need for renewable projects rather than "just in time", and planning laws allowed faster consenting of projects.
The report foresaw lesser roles for biomass and hydrogen in the near term at least, while it said the mooted Lake Onslow pumped storage development in the South Island, currently under investigation by the government, had benefits but also disadvantages.
A significant step to electrifying the economy would come through more electric vehicles, with a target of 1 million by 2030 suggested, more than doubling that target by 2040, and a further doubling by 2050.