Strategy and National Targets
The NZ Coalition Government published a new New Zealand Energy Strategy in mid-August 2011. The Strategy is a high-level document with limited references to marine energy and few action items have been articulated. The overarching aspirational target of achieving 90% of electricity generation from renewable sources by 2025 has been retained. NZ’s current renewable electricity percentage rose to 79% in the quarter to June 2011.

The Ministry for the Environment manages the Emissions Trading Scheme, a cap-and-trade scheme, including stationary energy (i.e., electricity generation) since 1 January 2010.

The Marine and Coastal Area Act 2011 was enacted, which effectively makes the coastal marine area (out to 12 nm) common land, which cannot be owned by the Crown or individuals, but over which public access is guaranteed.

A loose syndicate of organizations has developed a proposal for a New Zealand Marine Energy Centre, which was delivered to the Ministry of Science and Innovation in August 2011. The proposal, which would be co-funded by industry and Government, is still under consideration. 

Support Initiatives and Market Stimulation Incentives
There are no specific support initiatives or incentives for marine energy or renewable energy, although the National Policy Statement on Renewable Electricity Generation provides guidance to the courts and regional authorities on the national importance of renewable electricity generation.

Main Public Funding Mechanisms
There are three principal public funding mechanisms for marine energy:

• A dedicated fund called the Marine Energy Deployment Fund (MEDF), which was enacted in 2008 for 4 years. The MEDF was a competitive application funding mechanism with an expert review panel recommending projects for funding. The 4th and final Round of the MEDF led to the distribution of $880,000 to 3 projects with two other projects still being funded. The new National-led Coalition Government (elected 26 November 2011) has given no indications that it will continue, rejuvenate or replace the Fund.
   
• Technology New Zealand funding. A fund of unspecified size to support companies to develop or advance technologies. TechNZ funding is continuously available, although grants are rarely made public.
   
• R&D funding: see below

Relevant Legislation and Regulation
Planning or resource consents for all marine energy deployments and developments are judged and approved by regional councils (coastal permits – for offshore and shore-crossing activities) and district/city councils (land use permits – for onshore activities).

If a project is deemed to be of national significance, there is an alternative process managed by the Environmental Protection Authority (which operates under the Ministry for the Environment). The Government introduced new environmental legislation to regulate development activities in the Exclusive Economic Zone (between 12 and 200 nautical miles) and Extended Continental Shelf (areas beyond the EEZ, which are underlain by contiguous continental shelf). The Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill passed its First Reading on 13 September 201 and has been referred to select committee. The Bill, once passed, will set up a consenting regime and manage the environmental effects of activities – like petroleum exploration, seabed mining, and marine energy generation – in New Zealand’s Exclusive Economic Zone and Continental Shelf.

Relevant documents released

• New Zealand Energy Strategy and New Zealand Energy Efficiency and Conservation Authority
   
• Marine and Coastal Area Act 2011 

Government Funded R&D
The Government presently funds 3 research projects:

• Wave Energy Technology – New Zealand (WET-NZ): a 6-year project to develop a wave energy converter. The project reached the halfway point on 30 September 2011.
   
• Optimizing Tidal Energy: this 3-year project, being undertaken by the National Institute of Water and Atmospheric Research, is due for completion in September 2012.
   
• Extreme Waves and Storm Surges: this 3-year project is really a natural hazards project but may provide useful information for project developers. Due to be completed in September 2012.

In December 2011, the NZ Ministry of Science and Innovation announced a forthcoming Request for Proposals for Energy and Minerals R&D, with funded projects due to begin in October 2012. There are also a small number of Ph.D. students at a number of universities, undertaking research on wave and tidal energy topics. 

Participation in Collaborative International Projects
Through involvement in OES, New Zealand participates in two Annex activities. It is an active member of Annex IV on Environmental Impacts and a proposal to join Annex V is under discussion. 

Operational Ocean Energy Projects
As noted above, WET-NZ has tested three point absorber wave energy converters. The first was a 2 kW 1:5-scale proof-of-concept device tested in Taylor’s Mistake Bay from December 2006 to November 2008. The second 2 kW 1:4-scale device was tested intermittently at the same site from mid-2009 to June 2011.

New Developments
WET-NZ recently tested a 20 kW 1:2-scale device off Akaroa Heads, near Christchurch, from 9 September to 3 December 2011. It has since been towed to Wellington, where it will be refurbished before a 2+ year deployment at a consented site south of Wellington in the first quarter of 2012. 

    Figure 1: a) WET-NZ’s 1:5-scale 2 kW proof-of-concept device (2006-2008)
    Figure 1: b) WET-NZ’s 1:4-scale 2 kW PSAF device (2009 – 2011)
    Figure 1: c) WET-NZ’s 1:2-scale 20 kW MEDF device (deployed 9 September 2011)