New energy rankings highlight importance of balanced energy system

New Zealand’s 12th place ranking in the global energy trilemma shows the importance of a balanced energy system, says the Petroleum Exploration and Production Association of New Zealand (PEPANZ).

The World Energy Council uses the energy trilemma framework to rank countries on how they balance the three key elements of energy security, energy equity, and environmental sustainability.

“There is no room for complacency, given our energy security rating has fallen and there are now more countries moving ahead of us,” says PEPANZ Chief Executive John Carnegie.

“This reinforces that all three strands are interlinked and have major implications to our economy and society. If our energy security continues to fall then this will increase the cost of energy and threaten the transition to lower emissions and the attainment of a more prosperous inclusive society.

“This is a real issue for New Zealand with our natural gas production forecast to be 60% lower by 2030 without new exploration or development.

“We all want to see affordable and reliable energy as we transition but we’ll need natural gas to achieve this.

“Natural gas is vital because it provides a relatively low carbon energy source for industry and as a crucial back-up to our mostly renewable electricity system. As yet there is no realistic or affordable alternative to fill these roles.

“A secure long-term supply of natural gas is also a critical factor for major export industries when considering whether to enter or stay in New Zealand. This is vitally important given the need to rebuild our economy from the impacts of Covid-19.”

 The 2020 World Energy Trilemma Index is available here.