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Home / New Zealand / Politics

PM Chris Hipkins reveals Government’s plan to accelerate NZ’s switch to clean energy with wind and solar schemes

Adam Pearse
By Adam Pearse
Deputy Political Editor·NZ Herald·
7 Aug, 2023 02:40 AM7 mins to read

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Chris Hipkins holds post -Cabinet press conference.

The Government is lauding its achievement of speeding up nine solar panel projects through Covid-inspired legislation with 1.9 million solar panels so far referred for consent since 2020.

The solar panel projects have been fast-tracked through the Covid-19 Recovery (Fast-track Consenting) Act and if approved, could generate more the double the output of Clyde Dam, New Zealand’s third-largest hydroelectric dam.

“Fast-tracking renewable energy generation helps to reduce our reliance on fossil fuels and cut our carbon emissions,” Environment Minister David Parker said.

“These projects can proceed faster, provided they meet the normal environmental tests as determined by expert consenting panels.”

In June, fast-track referrals were agreed for Harmony Energy Solar Ltd’s projects near Marton, Opunake and Carterton, and Energy Farms Ltd’s projects near Rangitikei and Taranaki. They would involve large-scale solar investment in five North Island regions, adding power from about 829,000 solar panels to the national grid.

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Environment Minister David Parker is welcoming the projects being fast-tracked. Photo / NZME
Environment Minister David Parker is welcoming the projects being fast-tracked. Photo / NZME

In April, the Government referred the Rangiriri Solar Farm Project and Waerenga Solar Farm Project for fast-track approval. These two projects could displace about 220 million kilograms or more of New Zealand’s CO2 emissions from fossil fuel electricity generation each year.

“If approved, the nine solar projects will add 1147 megawatts of power to the national grid at peak output – almost three times the output of the 432 Mw Clyde Dam,” Parker said.

Fast-tracking, intended to be a temporary measure through the pandemic, would soon become permanent through the Natural and Built Environment Bill, which was expected to become legislation this term and would provide a fast-track pathway for infrastructure and regionally significant housing projects.

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Energy Minister Megan Woods said backing development for renewable electricity generation and transmission would help New Zealand meet its domestic and international carbon emission targets.

“Solar energy helps keep household power bills lower and, like all renewable electricity development, builds resilience into our energy network.”

The Government’s aim was to make half of New Zealand’s total energy provided through renewable energy means by 2035, and for 100 per cent of energy generation to be renewable by 2050.

The three wind farm projects would generate about as much electricity as the Clyde Dam, Woods said.

The proposed wind farms, located in Manawatu, near Auckland and in Southland, would generate about 419 megawatts of electricity at peak output.

“We’re incredibly well positioned globally to harness wind power, both onshore and offshore,” Woods said.

“When it comes to offshore generation, our location matters. The least-windy sites in Zealand are considered to have better wind energy potential than the windiest site in Australia.”

The Clyde Dam in Otago. Photo / File
The Clyde Dam in Otago. Photo / File

If approved, the Government claims, the wind farms would cut about 150 million kilograms of carbon emissions and create up to 840 construction jobs.

“In comparison, New Zealand’s third largest hydroelectric dam at Clyde produces about 432 Mw. Generating the same amount of electricity using fossil fuels would create about 150 million kilograms of CO2 emissions,” Woods said.

“It is vital we support this type of renewable energy development to help meet our national and international emissions reduction goals, decarbonise our economy, reduce costs to household and businesses and improve our national energy resilience.”

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Of 108 referred projects, 15 were for green energy infrastructure, Parker said.

“Fast-track consenting will become permanent through the Natural and Built Environments Bill that will become law this month. Fast track reduced consenting time by an average of 18 months per project, saving infrastructure builders time and money,” he said.

If approved for construction, the fast-tracked solar, geothermal and wind renewable electricity projects could create about 3500 construction jobs nationwide and employ more than 350 fulltime staff when completed.

“Retaining the fast-track consenting process will be crucial to reducing emissions and improving our economic security by increasing domestic renewable energy generation,” Parker said.

Prime Minister Chris Hipkins announced the clean energy schemes at his post-Cabinet press conference this afternoon.

“We’ve got amazing opportunities right here at our fingertips,” he said, adding New Zealand’s big hydro project opportunities were limited.

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Salary boost for nurses: ‘Important for keeping them in our health system’

Hipkins was also joined by Health Minister Dr Ayesha Verrall, who has just confirmed the Government and the New Zealand Nurses Organisation (NZNO) have agreed to a pay settlement that means nurses and some midwives will get a salary boost.

Verrall said she was “delighted” to announce Te Whatu Ora and nurses had reached an agreement.

She said the government had delivered a 59.9 per cent pay increase for nurses in six years.

“The rates we pay nurses in this country is important for keeping them in our health system,” Verral said.

“Last year, over 8000 nurses registered for the first time. The Govenment’s aspiration is that the health system is sustainably staffed.”

Hipkins said Government could afford recent pay increases because there were “contingencies set aside in the Budget [2023].”

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“The nurses extracted a good pay deal,” he said.

Verrall said it was possible nurses could be better paid than junior doctors in some instances after the pay increase.

Verrall said the collective agreement was backpayed from April 2023.

Health Minister Ayesha Verrall welcomed the pay settlement with nurses and midwives. Photo / Mark Mitchell
Health Minister Ayesha Verrall welcomed the pay settlement with nurses and midwives. Photo / Mark Mitchell

Verrall couldn’t give the total cost for the settlement, saying it was still being calculated.

“I think this is an excellent time to start and stay in New Zealand since we’ve turned around historic pay inequities,” she said.

Regarding dissatisfaction with the agreement from some nurses, Hipkins said there were always trade-offs to make in bargaining: “That’s the essence of bargaining.”

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On whether unions were seeking bargaining before a possible change of government, Hipkins said, “no, I doubt it”.

On the Green Party’s policy for universal dental care in New Zealand, Hipkins said the health system wouldn’t have the capacity to provide free dental care.

“I think the proposal we’ve seen from the Greens is somewhat simplistic,” he said.

The pay settlement includes:

  • A salary increase for all roles covered by the collective of $4000 effective from April 1, 2023.
  • An additional flat rate salary increase of $1000 to all Designated Senior Nurses, Nurse Practitioners and Designated Senior Midwives
  • A further salary increase to all steps of all scales of $2000 or 3 per cent whichever is the higher, effective from April 1, 2024
  • A lump sum payment of $750 will be made to all NZNO members bound by this settlement at the date of ratification.
  • A further lump sum payment of $500 to all employees.

“Under this latest deal, senior nurses will now earn between $114,025 and $162,802 a year, plus penal rates, and registered nurses between $75,773 and $106,739, plus penal rates,” Verrall said in a press release.

“Senior midwives who are NZNO members will be on full-time base salaries of $104,622-$153,180 and registered midwives on $79,261-$103,535. Overtime and penal rates for working unsocial hours will be additional.”

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Midwives represented by NZNO and the Midwifery Employee Representation and Advisory Service were yet to resolve their pay equity claim.

Second Waitematā Harbour crossing

Hipkins spent yesterday in Auckland announcing the Government’s choice for a second Waitematā Harbour crossing: two three-lane tunnels (one in each direction) for cars and trucks and a 21km light rail tunnel that would stretch from Albany to the Wynyard Quarter.

Indicative costings for the full plan total $35 billion to $44.5b with construction starting in 2029. Hipkins said “all options are still on the table” regarding how the project would be funded, including tolling and public-private partnerships.

As the tunnels were built, two lanes on the existing bridge would be turned into dedicated bus lanes to extend the Northern Busway to the CBD, and some clip-on lanes would become cycling lanes and walkways. Waka Kotahi NZ Transport Agency was also looking into building an elevated walkway above the cycle lanes to separate pedestrians.

The Government's proposed second harbour crossing in Auckland.
The Government's proposed second harbour crossing in Auckland.

It was expected Cabinet would make final approval on the build early next year, but it was proposed the road tunnels would be built ahead of the light rail tunnel.

National and Act supported the road tunnel option but both oppose light rail. The Green Party was very critical, with co-leader James Shaw calling the decision “bonkers” during a climate crisis.

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Auckland Mayor Wayne Brown was also displeased with how Labour and National had engaged Auckland Council regarding their positions and promised to develop faster and cheaper plans for the crossing.


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