✨ Energy Efficiency Policies
4 JUNE 2008 NEW ZEALAND GAZETTE, No. 92 2477
Discount rate
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The Government has adopted a discount rate of 5 percent real per annum for cost-benefit analyses of energy efficiency and other measures under the NZES and NZEECS. This lower discount rate reflects the long-term nature of benefits, including those designed to address climate change and other environmental externalities.
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The Commission should include an assessment using a 5 percent real per annum discount rate, and to advise how this has been taken into account, when assessing the cost-effectiveness of electricity efficiency programmes or arrangements.
Other arrangements and programmes
- The Commission should also put in place arrangements and programmes to promote efficiency in the following components of the electricity sector:
Generation
- Hydro, thermal and other fuels resources should be used efficiently in the generation of electricity. Disclosure of information, such as the amount of and reason for hydro spill, is expected to help avoid unnecessary waste of resources.
Conveyance
- Electricity should be conveyed efficiently on the national grid and distribution lines. Transmission and distribution companies should have incentives to manage transmission and distribution losses and constraints. The Commission should promote pricing structures that provide appropriate signals to manage those losses and constraints.
End-use
- The Commission should promote and facilitate the efficient use of electricity by end users. It should pursue this objective in multiple and mutually-reinforcing ways, including:
- by providing financial incentives for investment in electricity efficiency where it is cost-effective to do so and in response to market failures and barriers
- by promoting cost-reflective pricing
- by seeking innovative ways to enable residential and other consumers to respond to pricing incentives to use electricity more efficiently
- by facilitating the progressive introduction of advanced/smarter meters for consumers, through publishing technical guidelines, and reporting on the need for regulations by December 2009
- by encouraging and facilitating demand-side participation in the wholesale, distribution and retail markets
- by promoting the efficient use of load management.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2008, No 92
Gazette.govt.nz —
NZ Gazette 2008, No 92
✨ LLM interpretation of page content
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Electricity efficiency and conservation measures
(continued from previous page)
🏭 Trade, Customs & IndustryEnergy efficiency, electricity conservation, discount rate, cost-benefit analysis, climate change, environmental externalities
🏭 Assessment of electricity efficiency programmes
🏭 Trade, Customs & IndustryCost-effectiveness, electricity efficiency, discount rate, assessment
🏭 Promotion of efficiency in the electricity sector
🏭 Trade, Customs & IndustryElectricity efficiency, generation, conveyance, end-use, financial incentives, pricing, meters