Infrastructure, development and primary sector national direction

The National Policy Statement for Renewable Electricity Generation (NPS-REG) came into effect in 2011. It provides an objective and policies to enable the sustainable management of renewable electricity generation (REG). The NPS-REG has particular regard to two matters of national significance:

• the need to develop, operate, maintain and upgrade REG activities throughout New Zealand
• the benefits of REG.

In April 2023, a proposed NPS-REG and discussion document were released for public consultation.¹⁷ Submissions were received, but the instruments were not finalised before the 2023 General Election, and the NPS-REG proposed in 2023 has now been withdrawn.¹⁸ This proposal has been informed by this earlier work.

The proposed changes to the NPS-REG will help achieve the Government’s Electrify NZ programme, which aims to double REG in New Zealand. This is an important part of achieving electricity security and our climate goals as electrifying the energy and transport sectors could deliver almost a third of the emissions reductions New Zealand needs to reach net zero by 2050.¹⁹

^{17 Ministry for the Environment. 2023. Proposed National Policy Statement for Renewable Energy Generation (PDF, 298KB). Wellington: Ministry for the Environment. Ministry of Business, Innovation & Employment. Consenting improvements for renewable electricity generation and transmission. Retrieved 28 April 2025.}

^{18 Under section 51A of the RMA.}

^{19 Boston Consulting Group. 2022. The Future is Electric. A Decarbonisation Roadmap for New Zealand’s Electricity Sector (PDF, 13.8MB). p 14.}

The current resource management system does not enable and protect REG to the extent needed to achieve New Zealand’s electrification, electricity security, and emissions reduction targets.

The current NPS-REG is no longer fit for purpose, resulting in the following problems.

• Decision-makers do not fully or consistently recognise the significance and benefits of REG in RMA decision-making processes.
• Strong, enabling REG policy guidance is lacking across New Zealand.
• There is insufficient direction on how to address key issues around consenting decisions for REG projects (such as how to resolve competing national and local interests).
• Uncertainty has increased, as have consenting costs and the complexity of resource consent conditions. These factors can reduce the efficiency of existing REG and make projects difficult to consent.
• The costs and processes associated with resource consent acquisition can discourage investment in smaller-scale projects that tend to have fewer significant adverse effects.

Drafting conventions for national policy statements have also changed, favouring strongly directive language as national policy statements take priority in decision-making.

The key proposed changes to the NPS-REG include:

• a new, strengthened objective that better recognises:
  • the critical role REG plays in society and the economy
  • the rapid increase in REG required to achieve climate emissions reductions
• new enabling and directive policies to better enable REG and protect existing REG assets
• new direction on recognising and providing for Māori interests
• new policies to better enable REG while managing effects on the environment.

More detail on the proposed provisions is included in attachment 1.2 of this document. No existing provisions of the NPS-REG beyond those included in this proposal are open for public consultation.

The scope of the NPS-REG 2011 is not proposed to change. The word ‘hydro-electricity’ in the definition of REG is proposed to change to ‘water’ for consistency with the rest of the definition. A number of new definitions are proposed to assist interpretation of the new and amended policies. An example is separating out definitions of ‘small-scale REG’ from ‘community-scale REG’, as they have different meanings. Further details on proposed changes to definitions are available in attachment 1.2 of this document.

The proposed amendments to the objective respond to New Zealand’s targets for reducing emissions becoming law. The proposed amended objective highlights the critical role and benefits REG provides, stating the aims that REG generated in New Zealand:

1. increases in a rate and manner necessary to support the achievement of New Zealand’s emissions reduction and energy targets and associated plans under the Climate Change Response Act 2002
2. provides greater resilience to disruptions to electricity supply
3. provides for the social, economic and cultural wellbeing of people and communities, and for their health and safety, while managing the adverse effects of REG activities.

Policy A of the existing NPS-REG is proposed to be strengthened by:

• ensuring decision-makers give greater consideration and weighting to the national significance and benefits of REG projects
• increasing the list of REG benefits to include:
  • the benefits of maintaining and upgrading existing assets
  • locating REG close to demand and electricity networks.

Policy B of the NPS-REG is proposed to be amended to strengthen the weight to be given to considering cumulative gains and losses of REG capacity.

Policy C1 of NPS-REG is proposed to be amended to require consideration of the operational need or functional need for REG activities to be in particular environments. The proposed policy applies the definitions of functional need²⁰ or operational need²¹ in the National Planning Standards.

^{20 Defined as “the need for a proposal or activity to traverse, locate or operate in a particular environment because the activity can only occur in that environment”. Ministry for the Environment. 2019. National Planning Standards (PDF, 933 KB). Wellington: Ministry for the Environment. p 58.}

^{21 Defined as “the need for a proposal or activity to traverse, locate or operate in a particular environment because of technical, logistical or operational characteristics or constraints”. Ministry for the Environment. 2019. National Planning Standards (PDF, 933KB). Wellington: Ministry for the Environment. p 62.}

Two new policies are proposed to get the most out of our existing REG assets. The first proposed policy ensures decision-makers enable the continued operation and maintenance of existing REG assets. The second proposed policy provides direction to decision-makers when existing REG assets are to be re-consented, upgraded or re-powered,²² to:

• have particular regard to the efficiencies and environmental benefits of increasing REG output within the same or similar environmental footprint
• consider only additional or different effects to those from the existing REG assets
• provide flexibility in consent conditions to allow upgrades to adapt to new technologies and improve resilience.

Amendments are proposed to Policy D of the existing NPS-REG, to strengthen the requirement for decision-makers to protect existing REG assets from reverse sensitivity effects. This policy will require decision-makers to consider reverse sensitivity effects on REG activities when considering applications for new nearby activities that may be incompatible with REG activities.

^{22 Re-powering refers to the whole or partial replacement of wind and solar REG assets within an existing REG site.}

The current NPS-REG does not provide any direction for Māori interests in REG, creating uncertainty for Māori. A proposed policy requires decision-makers to recognise and provide for Māori interests in relation to REG, including by:

1. taking into account the outcome of any engagement with tangata whenua on a resource consent, notice of requirement or request for a private plan change
2. recognising the opportunities tangata whenua may have in developing and operating their own REG at any scale or in partnership
3. providing opportunities in appropriate circumstances for tangata whenua involvement in relation to sites of significance to Māori and issues of cultural significance
4. operating in a way that is consistent with iwi participation legislation.²³

The proposed policy is based on the existing NPS-UD provisions, and a consistent approach is being taken across the proposed NPS-I, NPS-REG and NPS-EN instruments. Nothing in these policies is intended to override any Treaty settlement requirement or other relevant arrangement.

^{23 Iwi participation legislation is defined in section 58L of the RMA to mean any legislation, including legislation listed in Schedule 3 of the Treaty of Waitangi Act 1975, that provides a role for iwi or hapū in processes under the RMA. This would include participation provided under the Marine and Coastal Area Act 2011 or under Mana Whakahono ā Rohe.}

A proposed policy enables REG with adverse effects on environmental values not included in section 6 of the RMA or covered by national direction, so long as these effects are avoided, remedied or mitigated where practicable.

Previous policy work had developed a draft ‘effects management hierarchy’ to address adverse effects on values in section 6 or the RMA and other national direction. The Government has now decided to focus on resolving these major tensions between infrastructure and natural environmental values in the replacement of the RMA, rather than through the current proposed changes to national direction.

Table 3 outlines the anticipated impacts of the NPS-REG proposal on various parties, with more detail available in the Interim Regulatory Impact Statement: NPS Renewable Electricity Generation on the Ministry for the Environment’s website.

Table 3:         Overview of anticipated impacts of the proposed amendments to the NPS‑REG

The Minister Responsible for RMA Reform considers the proposals to be consistent with the purpose of the RMA because they:

• enable the use and development of natural and physical resources to develop, operate, protect, maintain and upgrade renewable electricity generation while managing effects on the environment by providing clear and directive objectives and policies to decision-makers
• support people and communities to provide for their social, economic and cultural wellbeing, and for their health and safety, by contributing to maintaining and increasing REG capacity to improve electricity security and meet emissions reduction targets
• enable development, while protecting natural environmental values in accordance with relevant national direction (ie, river/lakes/wetlands continue to be managed under the NPS-FM). Section 6 matters without national direction will continue to be protected through the provisions of district and regional plans.

REG projects can have both positive and adverse effects for tangata whenua and for land, water and other taonga. Although the proposals may have impacts on taonga, decision-makers will be required to consider REG benefits and other provisions alongside other relevant national direction (eg, the NZCPS and NPS-FM), regional policy statements, and regional and district plans. This helps decision-makers to effectively weigh up both positive and adverse effects of REG activities when considering a consent application.

The proposals improve on the 2011 NPS-REG, which does not include any policies that provide for Māori values, aspirations and engagement.¹⁶ The proposals are also more enabling of iwi-led REG activities, which has been a consistent request from Māori seeking greater electricity options and self-sufficiency. The proposals will not directly impact the decision-making process requirements under the RMA, Treaty settlements or other legislative arrangements, including the Marine and Coastal Area (Takutai Moana) Act 2011 and the Ngā Rohe Moana o Ngā Hapū o Ngāti Porou Act 2019.

Treaty settlement agreements and related legislation continue to apply. Some Treaty settlements place obligations on councils, including involving iwi/Māori in plan development and decision-making and inclusion of policies in plans. The proposals do not present a risk to the operation of these Treaty settlement commitments.

Consultation will be necessary to test whether iwi, hapū and other Māori groups have concerns about the proposal or any perceived impacts on sites of significance to Māori, marae, Māori land, land returned under Treaty settlements, or other matters of significance to Māori groups.

^{16 As required by section 8 of the RMA.}

General material on implementation supporting the proposed NPS-REG, including the statutory requirements, is provided in section 4 of this document. Specific implementation provisions proposed for this national policy statement are as follows:

• the provisions in the NPS-REG would affect decisions on policy statements and plans, notice of requirements, and decisions by consent authorities. The recent Gibbston Vines¹⁶ case has shown that each part of the instrument should be clear about what decisions are being made and by whom
• no provisions in the proposed NPS-REG provide further direction on implementation beyond what is provided by the RMA (as described in section 4 of this document).

^{16 Gibbston Vines Limited v Queenstown Lakes District Council [2023] NZEnvC 265.}