Blended finance options to accelerate private sector financing.
CSF is advancing novel financing solutions that unlock private capital for New Zealand’s energy transition and energy prosperity. As part of this, we are exploring prioritised solutions that target industrial reticulated gas users, to support facilitation of transition to alternative technology solutions where greater security of supply exists, for example electrode or biomass boilers. Industrial businesses using gas for energy purposes consumed ~36% of gas in New Zealand in 20241, with electricity generation and non-energy use accounting for most of the rest.
The worsening gas supply shortage is creating energy security and energy equity pressures for businesses powered by gas — pressures that could soon become existential. Supporting businesses to fuel switch will prevent deindustrialisation; safeguard jobs, strengthen communities, and support regional growth. Moving fossil-fueled activity to electricity (or low-carbon alternatives) also delivers significant decarbonisation benefits, given New Zealand’s already highly renewable electricity system. At the same time, increasing demand for electricity and biomass will send strong investment signals to renewables developers as well as the biomass supply chain industry, stimulating growth.
Considering this, the proposal in this paper aligns with the following government priorities: building better markets for secure and affordable energy, going for growth and doubling the value of exports, accelerating wood energy as an energy resource, meeting national climate objectives.
