Carlos Martin Rivals, the CEO of global offshore wind company BlueFloat Energy, recently visited New Zealand following the government’s announcement of its plans for an offshore renewables regime.
While the development of offshore wind electricity generation is poised to significantly impact the energy landscape, Rivals said it will require a stable framework for permits and revenue streams.
A key element of the proposed legislation is a tiered permitting system. With this, an initial feasibility permit will grant exclusive rights to apply for a commercial permit within a designated area.
This approach aims to provide developers the opportunity to assess the area’s potential before they submit an application for a commercial permit, which is required prior to commencing construction.
Energy Minister Simeon Brown has suggested an initial developer-led strategy, allowing developers to identify and apply for sites. Other associated permits will only be issued after a developer secures a feasibility permit.
This strategy will help prevent land banking and eliminate the current first-come, first-served permit allocation system.
Several areas have been identified as suitable for offshore wind farms, with the potential to generate notable amounts of electricity. These sites are primarily located in coastal regions where wind conditions are favourable.
The development of offshore wind farms in New Zealand is poised to greatly impact the economy by creating jobs. A report from PwC examining the economic impacts of a national offshore wind energy industry has found out that the offshore wind industry is projected to create approximately 10,000 jobs during the construction phase, along with an additional 2,000 ongoing jobs in operations and maintenance. This job growth extends across various sectors, including manufacturing and supply chain roles related to wind farm components.
Additionally, offshore wind energy will be a critical component in reducing New Zealand’s dependence on fossil fuels and enhancing the country’s energy security and independence. By 2050, offshore wind could directly contribute to a 26% decrease in New Zealand’s energy-related emissions.
Besides the positive contribution to the economy and energy transition, the development of offshore wind farms also presents some environmental challenges that need to be carefully considered.
New Zealand is home to a large proportion of the world’s seabird species, many of which breed nowhere else. Additionally, approximately one-third of all seabird species frequently visit New Zealand’s Exclusive Economic Zone (EEZ) during their non-breeding seasons. Offshore wind farms could potentially impact seabirds through collisions with turbines or displacement from important feeding and breeding areas.
Marine mammals, including whales and dolphins, may also experience impacts from the construction and operation of offshore wind farms. The construction phase of offshore wind farms generates significant underwater noise, particularly from activities like pile-driving. This noise can disturb marine mammals, which might lead them to temporarily vacate the area during construction.
Moreover, offshore wind farms could potentially impact commercial and recreational fisheries by restricting access to traditional fishing grounds. The placement of turbine foundations and scour protection may also alter seafloor habitats that support fisheries.
If BlueFloat receives its initial permit, Rivals expects the process of obtaining necessary consents to take two to three years. Following successful consents, the next step would be one to two years of engineering procurement. The construction could potentially begin before the end of the decade.
