14 December 2022
Ref: DOIA 2223-1034
Andrew
Email:
[FYI request #21131 email]
Tēnā koe Andrew
Thank you for your email of 16 November 2022 to the Ministry of Business, Innovation and Employment
(the Ministry) requesting, under the Official Information Act 1982 (the Act), the following information
(numbered for reference):
I request under the Official Information Act what process has been made on the Lake Onslow Power
Scheme.
1. Specifically what are the next steps, when and who will make a final decision on whether the
project will proceed and when construction will begin.
2. Additionally will a decision be made before the next election and next budget.
3. Will all of the funds be appropriated and set aside along with construction contracts entered
and farm/land owners reimbursed before the next election.
4. Has the Ministry taken into account NZ's wider climate emissions targets in its consultation.
Has the Ministry consultated with the Ministry for the Environment and the Climate Change
Commission.
5.
Has funding for the project also been sought from the Reserve Bank of New Zealand's green
bond facility. Or from the proceeds from the emissions trading scheme.
The “Lake Onslow Power Scheme” is a workstream within the NZ Battery Project. The NZ Battery Project
will provide comprehensive advice on the technical, environmental and commercial feasibility of pumped
hydro and other potential energy storage projects.
Some of the information you requested is publicly available on the Ministry’s website, therefore I am
refusing these parts of your request under section 18(d) of the Act. The links to this information are
provided below for your reference.
Please see the Ministry’s response to your request:
Question 1: Specifically what are the next steps, when and who will make a final decision on whether
the project wil proceed and when construction wil begin.
Information on the next steps in the NZ Battery Project can be found here:
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-emissions-
economy/nz-battery/. Decisions on the NZ Battery Project, including a Final Investment Decision (if the
Project proceeds to that stage) will be made by Cabinet. Information on the timing of decisions can be
found
here:
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-
emissions-economy/nz-battery/.
Question 2: Additional y will a decision be made before the next election and next budget.
Information on the likely timing of decisions in the NZ Battery Project is available at:
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-emissions-
economy/nz-battery/.
The next Budget is expected in May 2023 (see
https://www.treasury.govt.nz/information-and-
services/financial-management-and-advice/budgets-and-forecasts). The date for the next election has not
yet been announced but is expected to be in late 2023.
Question 3: Wil all of the funds be appropriated and set aside along with construction contracts entered
and farm/land owners reimbursed before the next election.
Funds appropriated to date are for the initial, investigatory phases of the project. Further funds would
need to be appropriated for future steps. Information on the timing of project decisions can be found at:
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/low-emissions-
economy/nz-battery/.
Question 4: Has the Ministry taken into account NZ's wider climate emissions targets in its consultation.
Has the Ministry consultated with the Ministry for the Environment and the Climate Change Commission.
Yes. The NZ Battery Project relates to the Government’s manifesto commitment to investigate dry year
storage solutions to maximise renewable electricity in order to provide a pathway to 100 per cent
renewable electricity in New Zealand. It also supports our commitment to reduce greenhouse gas emissions
under the Paris Agreement. However, note that a Climate Implications of Policy Assessment (CIPA) is not
required at this stage of the NZ Battery Project.
The Ministry has consulted with the Ministry for the Environment but not the Climate Change Commission
at this stage of the project.
Question 5: Has funding for the project also been sought from the Reserve Bank of New Zealand's green
bond facility. Or from the proceeds from the emissions trading scheme.
No. Cabinet agreed to fund the NZ Battery Project as an Infrastructure Reference Group (IRG) ‘shovel ready’
initiative [CAB-20-MIN-0341 refers]. The $100.08 million funding bid supported the development of a
feasibility study for Lake Onslow pumped hydro and other options to ensure reliable supply in a 100 per
cent renewable electricity system, leading to the development of a Final Investment Decision should the
feasibility study be supported. A Final Investment Decision (if the NZ Battery Project proceeds to that stage)
would include consideration of sources of funding, and appropriation of funds.
The New Zealand Sovereign Green Bonds Programme (the Programme) provides ‘finance’, not funding for
government project. The framework outlining the Government’s climate and environmental priorities and
setting the basis for identifying, evaluating, selecting and reporting on expenditures included in the
Programme is publicly available at:
https://debtmanagement.treasury.govt.nz/resource/new-zealand-
sovereign-green-bond-framework.
Please also note that the inaugural issuance is expected in late 2022:
https://debtmanagement.treasury.govt.nz/investor-resources/new-zealand-sovereign-green-bond-
programme-launched.
If you wish to discuss any aspect of your request or this response, or if you require any further assistance,
please contact
[email address].
You have the right to seek an investigation and review by the Ombudsman of this decision. Information
about how to make a complaint is available at
www.ombudsman.parliament.nz or freephone 0800 802
602.
Nāku noa, nā
Susan Hall
Director, Projects and Programmes
Energy and Resource Markets
