Manawa Energy Submission: Natural and Built Environment Bill

Submission on the

Natural and Built Environment Bill

Submission to the Environment Committee

19 February 2023

Submission by:	Manawa Energy Ltd
To:	Environment Select Committee
By email:	[e-mail]

EXECUTIVE SUMMARY

1. Manawa Energy Ltd ("Manawa") is a renewable electricity generator producing around 8% of
   Aotearoa New Zealand's existing hydro-electricity generation capacity. Manawa supports New
   Zealand's ambitious renewable electricity and climate change goals.
2. Manawa supports many aspects of the Natural and Built Environment Bill (the "NBE Bill" or "Bill"). It has material concerns with a range of other aspects. Critical issues with the Bill for Manawa include the following:
   Key Issue One: short-term freshwater consents - achieving 100% renewables and ensuring a level playing field for distributed and grid connected generation1
3. The scope of potential exemptions to the mandatory short-term durations for water-related consents should be expanded to include applications for renewable electricity schemes that are connected to the local distribution network, not just national grid connected schemes. Under a 10 year water permit consent duration, there would be an additional 43 reconsent processes (over the next 35 years) for Manawa's existing hydro-electric power schemes. This places significant additional costs on Manawa as an applicant.
4. 1. The Bill fails to meet its own key stated objective of enabling renewable electricity generation, through drawing an arbitrary distinction between renewable hydro- electricity generation which is grid connected versus that which is not. Further, it will do so while achieving very minimal, if any, environmental benefits.
   2. The hydro-electric power schemes which are impacted by the Bill cumulatively make a real contribution towards the government's 100% renewables target and provide resilience to their local communities. They are generally many decades old, some over 100 years old. Environmental impacts from construction have long since passed. Ongoing effects (for example impacts on flows, fish passage etc) are relatively minor and can be - and are being - mitigated.

1See section 10 of this submission.

Manawa Energy submission on the Natural and Built Environment Bill

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1. The provisions in the Bill will put distributed generation at a significant disadvantage compared to grid connected electricity generation which will continue to enjoy much longer consent durations. Manawa is seeking that the Bill treat all electricity generators equally.
2. As highlighted by the Sapere Report (Appendix C), the nature of the connection does not determine the significance of hydro-electricity in meeting Natural and Built Environment Act ('NBEA') system outcomes.
3. If the Bill is not changed, Manawa and others will face new disincentives to invest in renewable generation, incurring not only significant uncertainty as to the future viability of their schemes, but also be forced into an unnecessary and repeated consenting cycle with associated time, costs and delays. This burden also falls on consenting authorities, iwi and communities, adding significant costs to the overall process and risks of ongoing, significant delays.
4. As drafted, the legislation creates significant investment uncertainty for Manawa and the large segment of existing renewable generation which is not grid connected. This will likely impact proposed upgrades or enhancements of existing hydro-electricity put on hold for years.
5. The scope of potential exemptions should be expanded to include water permit applications for hydro-electricity and other renewable electricity generation schemes which are not connected to the national grid, rather than arbitrarily favouring grid connected generation and creating a market imbalance. Parliament should avoid exempting individual establishments from the general law, as this Bill currently does.
6. Practically, the legislative "fix" is simple and comes without any environmental drawbacks. Small wording changes to the Bill will demonstrate the Government and
7. 
   Parliament's commitment towards 100% renewable electricity generation and put distributed and grid-connected generators on a level playing field.
8. This could be achieved by the following changes to the exemptions in cl 276 (3)(c):
9. 1. the construction, operation, upgrading, or maintenance of any of the following infrastructure activities:

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Manawa Energy submission on the Natural and Built Environment Bill

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1. renewable electricity generation facilities that connect directly to the national grid electricity transmissionor local distribution network.

Key Issue Two: stronger system outcomes recognition for infrastructure2

1. The critical need for safe and efficient infrastructure services must be appropriately recognised in the preliminary sections of the Bill, alongside other environmental protection/restoration imperatives. Manawa therefore seeks:
2. 1. the system outcome relating to infrastructure in cl 5(i) be strengthened as follows;
   2. 1. the ongoing and timely provisionenablement and protectionof infrastructure servicesin a timely mannerto support the well-being of people and communities.
   3. that renewable electricity is explicitly included in system outcome cl 5(b)(i) as follows:
   4. 1. in relation to climate change and natural hazards, achieving -
      2. 1. the reduction of greenhouse gas emissions, including through increased generation, storage, transmission, and utilisation of renewable electricity, sufficient to enable New Zealand to meet the target set under s5Q of the Climate Change Response Act 2002, and emissions budgets and emissions reduction plans:

Key Issue Three: "pathways through" potential roadblocks for critical infrastructure

1. Several aspects of the Bill represent potential "showstoppers" for key infrastructure. These include environmental limits and targets,3 and places of national importance4 which - in the absence of appropriate pathways through - have the potential to pre-emptively foreclose appropriate projects, including for key infrastructure. It is critical that important infrastructure, such as hydro-electricity generation, is not inappropriately constrained. Appropriate exceptions and/or pathways through for key infrastructure are therefore needed to be enabled by the Bill.

2

3

4

See section 5 of this submission. See section 8 of this submission. See section 11 of this submission.

Manawa Energy submission on the Natural and Built Environment Bill

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1. INTRODUCTION

1. This submission is made on behalf of Manawa Energy Ltd ("Manawa"). Given the breadth of the proposed changes to the resource management system Manawa is a key stakeholder.
2. At a high level, Manawa supports the purpose of the Bill. Having said that we are concerned that as drafted it will not achieve what it intends to. It needs to be effective, workable, and not have unintended consequences. Manawa supports many features of the Bill. However, there are a number of important aspects of the Bill which Manawa does not support and considers should be amended or deleted.
3. This submission addresses Manawa's key concerns.
4. Manawa is part of the Electricity Sector Environment Group ("ESEG") and was involved with the preparation of, and supports the joint submission lodged by ESEG.

2. BACKGROUND TO MANAWA

1. Manawa is a renewable electricity generator producing around 8% of Aotearoa New Zealand's existing hydro-electricity generation capacity from 25 schemes throughout Aotearoa New Zealand. Manawa supports New Zealand's ambitious renewable electricity and climate change goals, with 100% renewable electricity generation a core objective.
2. Manawa is a publicly listed and predominantly a New Zealand owned company. Its origins are from the Tauranga Electric Power Board (established in 1924) which grew into Trustpower Limited that was formed as part of the deregulation of the electricity supply industry in the mid-1990's.
3. In 2022 Manawa was established following the sale of the mass market retail business (including the Trustpower brand) to another company. The remaining business, which is focused on electricity generation, was rebranded to Manawa Energy. Manawa employs over 200 people throughout Aotearoa New Zealand.
4. Manawa owns 487MW of hydro-electricity generation assets throughout Aotearoa New Zealand which consists of 38 hydro-electric power stations across 25 individual schemes (including schemes under the King Country Energy portfolio of which Manawa is a 75% shareholder and is responsible for the operation and maintenance of those schemes) (see

Manawa Energy submission on the Natural and Built Environment Bill

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