National Policy Statement for
Renewable Electricity Generation 2011
Summary of Board of Inquiry
recommendations and
Minister for the Environment’s decision
This document may be cited as:
Ministry for the Environment. 2011. National Policy Statement for Renewable Electricity
Generation: Summary of Board of Inquiry recommendations and Minister for the
Environment’s decision. Wellington: Ministry for the Environment.
Published in April 2011 by the
Ministry for the Environment
Manatū Mō Te Taiao
PO Box 10362, Wellington 6143, New Zealand
ISBN: 978-0-478-37221-2
Publication number: ME 1049
© Crown copyright New Zealand 2011
This document is available on the Ministry for the Environment’s website:
www.mfe.govt.nz
Contents
Introduction
5
Summary of Board of Inquiry recommendations and
Minister’s decision
6
Structure
Matters of national significance
Interpretation and use of terms
Preamble
Objective
Recommended policies
Monitoring and review
Explanatory note
Appendix 1: Wiring Diagram – Development of the NPS for
Renewable Electricity Generation
National Policy Statement for Renewable Electricity Generation 2011
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Introduction
The Government’s intention to prepare a National Policy Statement for Renewable
Electricity Generation was announced with the release of the New Zealand Energy Strategy in
October 2007.
The Minister for the Environment (the Minister) appointed a Board of Inquiry, comprising
Dr Royden Somerville QC (Chair) and Mrs Geraldine Baumann, Sir Wira Gardiner KNZM and
Associate Professor Ralph Chapman, as members, to inquire into and report on the proposed
statement. The Board publicly notified the proposed statement on 6 September 2008 (proposed
NPS REG), received submissions, heard submitters, and forwarded their “Report and
Recommendations of the Board of Inquiry into the Proposed National Policy Statement for
Renewable Electricity Generation” to the Minister in March 2010. The Minister, after
considering the report and recommendations of the Board, made changes to the proposed
statement and recommended the resulting statement – the National Policy Statement for
Renewable Electricity Generation 2011 (NPS REG 2011) – to the Governor General, who
approved it on 11 April 2011.
Section 52(3)(c) of the Resource Management Act 1991 requires the Minister, as soon as
practicable after a national policy statement has been approved, to provide every person who
made a submission on the statement with a summary of the recommendations and a summary of
the Minister’s decision on the recommendations (including reasons for not adopting any
recommendations). This document, prepared by the Ministry for the Environment on behalf of
the Minister, provides that summary.
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
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Summary of Board of Inquiry
recommendations and Minister’s decision
The Board of Inquiry’s recommendations to the Minister for the Environment consisted of a
comprehensive report with a recommended NPS REG that was markedly different from the
proposed NPS REG in terms of structure, scope and level of prescription.
Key differences included:

a high level of specificity for wind and geothermal electricity generation

a requirement on councils to “promote, enable and provide” for these renewable electricity
generation activities

elevation of the national benefit over local considerations and effects

provisions for landscape assessment for wind energy developments and reverse sensitivity

requirements to classify wind generation activities depending on the outcome of the
landscape assessments.
The major conclusion of the report was that to achieve the strategic policy objective, namely
that 90 per cent of New Zealand’s electricity be generated from renewable sources by 2025,
renewable electricity generation activities of any scale and the benefits relevant to them, need to
be promoted in RMA instruments.
In relation to hydroelectric power generation, the Board decided not to include specific policies
to address the allocation and prioritisation of water use in rivers, and the re-consenting of
existing hydroelectric power activities. These were seen as matters for regional councils to
address in a catchment or regional context with the national guidance recommended by the
Board of Inquiry into the proposed NPS on Freshwater Management.
The Board endeavoured to align the policies in the NPS REG with those in the previously
released NPS on Electricity Transmission. They also sought alignment with the
recommendations made by the Boards of Inquiry into the proposed New Zealand Coastal Policy
Statement and the proposed NPS on Freshwater Management.
The Minister has made decisions on those recommendations and has since recommended the
final NPS REG to the Governor-General. The Minister sought to retain the Board’s
recommendations, including the structure of the NPS REG, wherever possible. However, some
changes were made to the NPS for the following reasons:

to improve workability of the NPS REG or particular policy in practice eg, to remove any
confusion in the use of terms, to improve the durability of the NPS

to reflect developments in policy and/or practice in the intervening period – this includes
alignment with or reference to other national policy instruments under development and
developments with local authorities

changes to style and language of the NPS REG to improve consistency with other national
policy instruments either in place or under development

where the policy is seen as potentially being beyond the legal authority of a national policy
statement ie, ultra vires
6
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations

where the policy may be within the legal authority of a national policy statement but may
be problematic in interpretation or application.
Amendments to the Board’s recommended policies were substantial in some instances (eg,
changes to policies related to landscape assessment for wind energy) and minor in others (eg,
small changes to wording to improve workability in practice). Some of the policies were seen to
create rules and were more suited to a national environmental standard. All policy changes that
differ from the recommendations of the Board have been made within the constraints of the
scheme of the Resource Management Act 1991 (RMA) and principles of administrative law. No
new policy has been developed beyond the scope of the Board process.
The Board’s recommendations and the Minister’s decisions are summarised in the following
tables which use the Board’s recommended NPS REG as their starting point. A wiring diagram,
included as Appendix 1, provides the same information in a graphical format and also illustrates
the transition across the versions of the proposed NPS REG, the Board’s recommended NPS
and the final NPS REG.
Structure
Board of Inquiry recommendation
Minister’s decision
The Board set out a different and more
detailed structure for the NPS REG. Proposed
changes included:
Retain Board’s overall recommended
structure.

interpretation section moved to front of
document

a new numbering format
Minor amendment to numbering format to
correct redundancies that emerged after
consequential policy amendments were
made.
Matters of national significance
Board of Inquiry recommendation
Minister’s decision
The Board extended the “Matter of National
Significance” to become “Matters of National
Significance” with inclusion of benefits of REG
activities. This change improved the internal
consistency of the document.
Accepted with minor change in formatting.
Interpretation and use of terms
Board of Inquiry recommendation
Minister’s decision
The Board amended the definition of
“application” to include reference to section
128 of the Resource Management Act.
Remove the definition for “application” as a
consequential change following amendments
to the E Policies mean the term “application”
is no longer used in the body of the NPS
REG.
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
7
Board of Inquiry recommendation
Minister’s decision
The Board amended the definition of “small
and community-scale distributed electricity
generation” so that it did not refer to installed
capacity and instead referred to “where the
adverse effects of the generation activity are
not more than minor”.
Definition edited to:
(a) remove the words “where the adverse
effects of the generation activity are not
more than minor” so that the relevant
policy framework can apply to notified
applications whose effects can be
avoided, remedied or mitigated through
conditions;
(b) ensure all configurations of generation
are covered, including those situations
where the generation is connected into a
distribution network.
Accepted other definitions as put forward in
the proposed NPS REG.
Amended the following definitions to either
bring them into line with existing legislation,
including the Electricity Industry Act 2010, or
to clarify the application of Policies in the
NPS REG:

“local electricity distribution network” –
amended to “Distribution network”

“national grid” – amended

“renewable electricity generation” – minor
amendment to wording

“renewable electricity generation
activities” – minor wording amendments;
inclusion of “electricity storage
technologies associated with renewable
electricity”.
Added a definition for “distributor”.
Preamble
Board of Inquiry recommendation
Minister’s decision
The Board removed the reference to the
Government’s October 2007 adoption of the
New Zealand Energy Strategy (NZES).
Accept the Board’s recommendations.
The Board changed the words “balancing the
competing values” to “addressing the
competing values”.
Minor wording changes were made to ensure
the NPS was current and adequately set out
the role and scope of an NPS:
Paragraph 3:

reference to the 90% target updated with
the words “providing this does not affect
security of supply” in line with reaffirmed
target in the 2010 draft NZES
Paragraph 4:

8
insertion of the statement that the NPS
does not apply to the allocation and
prioritisation of freshwater
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
Board of Inquiry recommendation
Minister’s decision
Paragraph 6:

insertion of a statement about potential
conflicts with the relationship of Māori and
the role kaitiaki

insertion of reference to the NZCPS 2010

wording change from “Adopting a
nationally consistent approach...” to
“Increased national consistency ...”
Objective
Board of Inquiry recommendation
Minister’s decision
The proposed NPS REG and Board’s versions
of the Objective referred directly to the target in
the 2007 New Zealand Energy Strategy
(NZES) such that 90 per cent of New
Zealand’s electricity to be generated from
renewable sources by 2025.
Amended to refer to an objective to meet or
exceed the Government’s national target for
the generation of electricity from renewable
resources; rather than the explicit reference
to 90 per cent by 2025.
This change maintains the direct link to the
Government’s target as a strategic policy
goal for renewable electricity. It ensures
durability of the NPS REG and plan changes
made to give effect to the NPS REG if there
are changes to the target figure or date in the
future.
Other minor amendments to wording.
Recommended policies
Board of Inquiry recommendation
Minister’s decision
Policy A.1 and A.2: Recognising the benefits
of renewable electricity generation activities.
Combine Policies A.1 and A.2.

To improve internal consistency of the
statement, the Board recognised two
matters of national significance which
changed the title of proposed Policy 1 from
“Recognising the national significance of
the benefits of renewable electricity
generation activities” to “Recognising the
benefits of renewable electricity generation
activities”. Consequential change to the
policy followed and the Board split the
content of Policy 1 in the proposed version
of the NPS across their recommended
“Matters of National Significance” and
Policies A.1 and A.2.
Policy A.2 presented difficulties centred on a
lack of clear definition of “local environmental
matters”. This lack of definition had the
potential to make the application of the NPS
REG uncertain in many situations, including
where different section 6 and/or section 7
matters were relevant.
There were also difficulties interpreting the
relationship between policies A.1 and A.2
and the Objective due to the different
requirements of the “have particular regard
to” and “recognise and provide for” wording.
Policies A.1 and A.2 were consolidated into a
single Policy A. Wording now includes “to
recognise and provide for the national
significance of renewable electricity
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
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Board of Inquiry recommendation


The Board also deleted Policy 3 of the
proposed version of the NPS and included
consideration of the relative reversibility of
REG technologies in Policy A.1.
The Board recommended Policies A.1 and
A.2 which set out the requirements for
decision-makers to recognise the benefits
of REG. Policy A.1 required decisionmakers to have “particular regard to” the
national, regional and local benefits of REG
at any scale and Policy A.2 required them
to “recognise” the matters of national
significance and to “give greater weight to
such national significance over local
environmental matters”.
Policy B.1: Acknowledging the practical
implications of achieving New Zealand’s target
for electricity generation from renewable
resources
Minister’s decision
generation activities...” which strengthens
overall policy.
The final wording of Policy A does not include
the words “at any scale”. Instead, a
consequential change was made to Policy F,
which applies to small and community-scale
REG. This change, together with the change
to the definition of small and communityscale distributed electricity generation, will
ensure local government planning and
consent processes also provide for the
development of smaller scale REG activities.
The Board’s recommendation for inclusion of
Policy B.1 was accepted with some small
amendments to improve workability.
There was a minor amendment to wording in
paragraph (a) which replaced the word
“requires” with the words “can require”. This
change was to give effect to the policy intent
that allocation of water resources is outside
of the scope of the NPS REG. A side benefit
of this amendment was that it ensured that
Policy B.1 did not limit any readjustment of
use of energy resources, such as reallocation
of water resources between generators.
Next, there was a consequential amendment
to Policy B.1(c) as a result of the removal of
the direct reference to the 90% target in the
Objective.
Finally, reference to demand side
management (DSM) was removed because it
was considered more appropriate for
implementation guidance to outline the role of
DSM and other innovations in the uptake of
increased levels of REG.
Policy C.1 and C.2: Acknowledging the
practical constraints associated with the
development, upgrading, maintenance and
operation of new and existing renewable
electricity generation activities

The Board carried the content of Policy 2 in
the proposed NPS REG, with additions,
across to their recommended Policies C.1
and C.2.
Policy D.1: Managing reverse sensitivity
effects on renewable electricity generation
activities
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The Board’s approach was adopted with
edits:

to introductory text to Policy C.1

to bring the Board’s Policies C.2(ii) and
C.2(iii) into NPS REG Policies C.1 (d) and
(e) respectively with minor edits

to reword NPS REG Policy C.2 in relation
to environmental compensation and
offsetting measures to take account of
developments in offsetting approaches.
The Board’s recommendation was accepted
with some amendments.
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
Board of Inquiry recommendation
Minister’s decision
Policies E1.1, E2.1, E3.1, E4.1, F.1 and G.1:
Incorporation of renewable electricity
generation activities into regional policy
statements and regional and district plans
 The Board considered it appropriate to
include specific policies addressing
categories of REG technologies and
activities because they saw that the
resource management issues for some
REG technologies and activities warranted
greater policy guidance and direction.
Accordingly, the Board extended the reach
of Policy 2 in the proposed version of the
NPS, which referred to “the nature and
location of the renewable energy source”,
by separating out the different energy
resources across the series of E and F
Policies.
The terms “promote”, “enable” and “provide
for” (or a combination of these terms) were
used variably throughout the E Policies. This
led to potential confusion and uncertainty
about whether policy direction for different
types of renewable electricity generation was
intended to be stronger than for other types.

Inclusion of the terms “promote”, “enable”
and “provide for”.
To rationalise, and to ensure that the NPS
REG retained, as far as possible, the
proactive and more directive approach
sought, these policies were amended to
replace the “shall promote”, “enable” and
“provide for” wording with ”shall include
objectives, policies and methods (including
rules within plans) to provide for ..”.
Also, changes were made to:
 ensure consistency when referring to
“development, operation, maintenance
and upgrading” of REG activities; and

add to each policy “to the extent
applicable to the region or district”.
Policy E.1: Solar, biomass and marine
resources.
Amendment as above.
Policy E2.1: Hydro-electric resources
Amendment as above.
Also, changed to “solar, biomass, tidal, wave
and ocean current resources” to align with
definition of “renewable electricity
generation”.
Also, changed to “hydro-electricity resources”
to align with definition of “renewable
electricity generation”.
Policy E3.1: Wind resources
Amendment as above.
Policies E3.2 to E3.8: Wind / landscape
assessment provisions / implementation of
landscape provisions / classification of
activities / reverse sensitivity / wind turbine
area overlay (included direction under s.55 to
regional councils)
 The Board considered that the NPS should
address landscape issues because they
can present one of the key barriers to wind
energy development.
Delete policy E3.2 with consequential
deletions of Policies E3.3 to E3.8.

The Board’s report set out prescriptive
policy guidance with an interrelated and
cascading set of policies for a uniform
approach across the country.

The Board’s policy approach included an
objective of achieving “sustainable
management of the region’s wind resource
by enabling its utilisation for the generation
of electricity in appropriate locations” and
required a landscape assessment to the
Whilst the intent of the Board’s approach is
noted, the recommended policies caused
concern in terms of legal interpretation, policy
and practice and would have been
prohibitively expensive to implement.
The recommendations required a specific
rule to be created on the basis of the
landscape assessment. Consent
considerations would have been limited to
matters defined in the NPS, which was in
effect a subset of sections 6 and 7 of the Act.
It was considered that this might not achieve
an integrated approach to sustainable
management. Concerns arose about the cost
for local government to implement the
recommended policy, mainly due to the costs
of landscape assessment, and there was a
risk of possible “backlash” against wind
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
11
Board of Inquiry recommendation
extent applicable in the region outside of
urban areas. The policy direction also set
out what the classification of wind
generation activities should be
consequential on the outcome of that
assessment.

The Board’s recommendations included
the classification of the activity, and the
imposition of performance standards in
areas where there is a known wind
resource to address noise, earthworks,
colour, height and separation distances
from residential buildings.
Minister’s decision
energy due to the very prescriptive nature of
the approach.
Alternative approaches were tested but the
potential costs of plan and policy changes,
which fall to local government, had a
significant negative impact on the cost benefit
and the approach was dropped.
The ongoing development of second
generation planning documents has
progressed although the combination of a
lack of common methodology and resourcing
issues appears to have constrained some
councils in relation to whole or region or
district landscape assessments. In some
instances the activities of REG developers
had played a lead role in the identification of
outstanding natural landscapes and the level
of development that is considered
appropriate either in or outside those areas.
The development of case law has also had a
strong bearing on the level of policy direction
required of the NPS REG.
The NPS REG is not the right tool to address
calls for certainty and/or consistency for
landscape assessment methodology; an
issue raised by many types of development,
not wind energy alone. Work is underway to
develop supporting measures to deal with
underlying issues eg, the need for consistent
landscape assessment methodology.
Policy E4.1: Geothermal resources
Amendment as above.
Policies E4.2 to E4.4 and Schedule A
(included direction under s.55 to regional
councils)
 The Board adopted the Waikato Regional
Council’s approach to establish a New
Zealand-wide policy platform for the
allocation and management of known
geothermal resources. This was included
as Schedule A with planning provisions for
geothermal energy.
Geothermal resources are concentrated in
three regions of the country and ongoing
collaboration between the relevant local
authorities has seen the development of a
nationwide best practice approach.
Policy F.1: Supporting small and communityscale renewable electricity generation
 Policy 5 of the proposed NPS REG
adapted to become Policy F.1.
Amendment as to E1.1, 2.1, 3.1 and 4.1
above.
Policies 4.2 to 4.4 and Schedule A were no
longer required and therefore deleted.
Consequential change was made to Policy
F.1 that means that local government
planning and consent processes also provide
for the development of smaller scale REG
activities as part of giving effect to Policies
E1 to E4 in the final NPS REG.
See also changes to definition of small and
community scale distributed electricity
generation.
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NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
Board of Inquiry recommendation
Minister’s decision
Policy G.1: Enabling identification of
renewable electricity generation possibilities
Amendment as above.

Policy 5 of the proposed version of the
NPS adapted to become Policy F.1.
Removal of timeframe and process for
implementation – refer to commentary on
Policy H.1.
Policy H.1: Time within which implementation
is required
The implementation timeframes were reworked in line with other changes to the NPS.

Inclusion of new Policy H.1 with timeframe
for implementation.

The Board’s recommended NPS stated
that where there was not another date
expressly stated, local authorities were
required to give effect to the policies for the
different categories of REG activities
(Section E) and small and community-scale
REG (Section F) by initiating a change to
regional policy statements, regional and
district plans and proposed plans or
variations by 31 March 2013.
Policy H1 sets out that regional councils,
unless they have already provided for
renewable electricity generation activities, are
to give effect to its provisions by notifying
using Schedule 1 of the Act changes to
existing or proposed regional policy
statements within 24 months of the date on
which it takes effect.
Policy H2 sets out that for local authorities,
district plans, regional plans, proposed plans,
plan changes and variations are required to
give effect to the provisions of the NPS by
notifying using Schedule 1 of the Act, a
change or variation (whichever applies)
within the following timeframes:
 24 months of the date on which this
national policy statement takes effect,
where the regional policy statement or
proposed regional policy statement
already provides for the policies; or

within 12 months of the date on which the
change or variation becomes operative,
where a change or variation to the
regional policy statement or proposed
regional policy statement is required.
Monitoring and review
Board of Inquiry recommendation
Minister’s decision
No specific recommendation made by the
Board.
Insertion of statement regarding Minister for
the Environment’s intention to monitor and
review the implementation and effectiveness
of the NPS REG, as per the Minister’s
functions under section 24(f) of the Act. The
Ministry for the Environment will review the
NPS REG within 5 years of it taking effect.
This information collection framework fits with
existing Ministry activities and will leverage
existing energy data collection and
information provision undertaken by other
agencies, including the Ministry of Economic
Development and the Energy Efficiency and
Conservation Authority.
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
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Explanatory note
Board of Inquiry recommendation
Minister’s decision
Minor changes with removal of last paragraph
to take account of differing implementation
requirements in the Board’s recommended
NPS.
Minor amendment to second paragraph to
use standardised wording from the New
Zealand Coastal Policy Statement 2010
(NZCPS 2010) about when the NPS takes
effect.
Amendment to third paragraph to include
reference to designations, heritage orders
and water conservation orders.
Inclusion of a fourth paragraph outlining the
requirements of regional councils and local
authorities in implementing the NPS REG.
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NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
Appendix 1: Wiring Diagram – Development of the NPS for
Renewable Electricity Generation
NOTIFIED DRAFT NPS
BOARD OF INQUIRY RECOMMENDATIONS
FINAL NPS
Preamble
Preamble - Part II considerations
Preamble - minor amendments; strengthen reference to 90% by 2025 target; insertion;
* From “balancing” to “addressing “competing values”
to clarify that NPS does not apply to allocation & prioritisation of freshwater
Matter of National
Significance
Matters of National Significance
Matters of National Significance – no change
Objective
Policy 1 – national
significance of benefits of
REG activities
* Extended to include benefits of REG
minor amendments
Policy A.1 – benefits of REG
Policy A – Policies A.1 and A.2 consolidated into one; wording now includes “to
* List of benefits extended; Policy 3 deleted
Policy A.2 - benefits of REG / national over local
Policy B.1 – practical implications of achieving 90% target
Policy 2 - practical
constraints / new &
existing REG
Policy 3 – relative
reversibility of generation
types
Policy C.1 – practical constraints / new & existing REG
Policy C.2 - practical constraints / mitigation measures
Policy B – amendments to improve workability; demand side mgmt removed
Policies C1 & C2 - amendments to improve workability, broaden scope & take account
of developments in offsetting
Policy E1.1 – solar, biomass, marine
Policy D – amendment to improve workability
Policy E2.1 – hydro
Policy E1 –amendment to improve workability
Policies E2 –amendment to improve workability
Policy E3.1 – wind
Policy E3– amendment to improve workability
Policies E3.2 – wind / landscape assessment provisions
Note regarding deletion of Policies E3.2 to E3.8 – recommended policies were
Policy E3.7 – wind / reverse sensitivity
Policy E3.8 – wind / wind turbine area overlay
Policy E4.1 – geothermal
Policies E4.2 to E4.4 – geothermal / planning provisions
Policy 5 - small &
community-scale
recognise and provide for” to strengthen policy whilst the “national over local” tension
in Policy A.2 was removed. Difficulties centred on a lack of clear definition of “local
environmental matters” and subsequent tensions if the NPS REG requires internal rebalancing of section 6 and section 7 matters. Removing Policy A.2 created interpretation
difficulties with the relationship between Policies A.1, A.2 and the Objective due to the
different requirements of the “have particular regard to” and “recognise and provide
for” wording.
Policy D.1 – reverse sensitivity
Policies E3.3 to E3.6 – wind / implementation of landscape
provisions / classification of activities
Policy 4 - identification of
generation possibilities
Objective – amended to Govt’s national target rather than explicit reference to 90%;
Objective
Policy F.1 – small & community-scale
problematic and unworkable in terms of legal interpretation, policy and practice and
would have been prohibitively costly to implement; Policy E3.2 deleted with
consequential deletions of E3.3 to E3.8 . No constructive alternatives presented.
Complementary measures to be recommended to deal with underlying issues e.g. the
need for consistent landscape assessment methodology.
Policy E4 - amendment to improve workability
Policies E4.2 to E4.4 - council collaboration means policy no longer necessary; deleted
Policy F - definition amended; amendment to improve workability
•Change to definition
Policy G – amendment to improve workability
Policy G.1 – identification of possibilities
Policies H1 & H2 – amendment; align with other changes – new Policy H.2;
Policy H.1 – implementation timeframe
Monitoring & review – insertion of statement regarding Minister’s intention to
Schedule A - geothermal / planning provisions
monitor and review the implementation and effectiveness of the NPS
Schedule A - no longer necessary; deleted
NPS for Renewable Electricity Generation 2011: Summary of BOI recommendations
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