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Post-2012 Policy Options Ken Piddington, Senior Associate, IPS

Post-2012 Policy Options Ken Piddington, Senior Associate, IPS. A risk management approach to the accelerated introduction of clean energy in NZ and the Pacific. Opportunities and Rationale. Potential of RE in small- to medium-size networks (but including hot climate urban)

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Post-2012 Policy Options Ken Piddington, Senior Associate, IPS

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  1. Post-2012 Policy OptionsKen Piddington, Senior Associate, IPS A risk management approach to the accelerated introduction of clean energy in NZ and the Pacific

  2. Opportunities and Rationale • Potential of RE in small- to medium-size networks (but including hot climate urban) • Technologies showing 30-40% growth rates • Energy source is generally free, carbon free, and with minimal O & M costs • Can improve power factor in an Internet world • Resilience to supply basic needs in disaster situations (communications, water, medicines)

  3. Hickillogical Economics • Policy locked into fallacy that electricity prices at entry point to grid accurately reflect costs • So any kWh at higher price is ‘uneconomic’ • This means “Think Big rules – OK” (even for wind) • Yet village-scale PV already economic in 10,000 islands (World Bank analysis) • And investment decisions for essential services should use lifecycle costings

  4. A Risk Management paradigm • Decouple electricity supply from world prices • Match technology choice to load profile • Analyse climate change disaster events • Understand that grids will mutate in 21st C • Encourage individuals and communities to make investments using local resource • Build skills and comfort with BYO power units (kidstuff) • Link offshore investments (NZAID or powercos) with needs of NZ communities

  5. Post-2012 Mechanisms • Design of Kyoto+ can help to manage risks • And bring NZ into logical partnership with Australia and Forum Members • Linkages with C pricing and C trading • Vexed question of emission rights (corporate buy-off or individual empowerment?) • Hope that informed discussion can proceed post-Bali and allow NZ to take new initiatives

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