Offshore renewable energy regime

New Zealand’s offshore renewable energy (including wind, wave and tidal) is a largely untapped energy source, and with our wind capacity factors rated as some of the highest in the world, harnessing this could help in meeting our long-term energy needs and transition to net-zero carbon emissions by 2050.
With this in the sights of the Government’s Electrify NZ work program, the Offshore Renewable Energy Bill (Bill) was introduced and passed its first reading in December 2024. The type of developments envisaged are offshore windfarms, and in the future potentially wave and tidal energy. One of the aims of the Electrify NZ program is to remove barriers to investment in renewable electricity generation, with the goal of doubling New Zealand’s supply of renewable energy by 2050.
The Bill would establish a legislative regime, which would work alongside the existing environmental consenting regimes, to govern the construction, operation and decommissioning of offshore renewable energy (ORE) developments. A key objective is to give developers sufficient certainty to invest in ORE projects, while enabling the selection of developments that best meet New Zealand’s interests. It would achieve this by creating a two-stage permitting application process, with permits awarded by the Minister for Energy (the Minister).
In stage one, developers would be required to make an application for a feasibility permit. The permit would be for a defined area for a seven-year period, and would give the holder the exclusive right to apply for resource or marine consents and for the stage two commercial permit. This would give developers the confidence to undertake feasibility studies knowing no other party will be approved for the same site. The permit would be subject to a ‘use it or lose it’ requirement and could be revoked if certain milestones are not met.
To meet the eligibility criteria to apply for a feasibility permit, an applicant must have taken into consideration the existing rights and interest of other marine users, including iwi authorities, hapu and Treaty settlement entities. The Minister must also consult the relevant iwi and hapū before granting any permit.
Applications for a feasibility permit could only be made during an application round. Before granting applications for a feasibility permit the Minister must give public notice of the proposed developments and the areas they cover, to give the public the opportunity to have their say.
In stage two, a commercial permit must be obtained. This allows for a final check to ensure projects meet the required standard and risks are managed before commencing. Commercial permits would be granted for a defined period up to a maximum of 40 years. The Minister may impose any conditions considered appropriate and would have the power to extend the duration of the commercial permit.
The plan is to have the regime in place by mid-2025, with the first feasibility permits granted in 2026.