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### Viewing cable 08WELLINGTON51, DOE AND GNZ OFFICIALS DISCUSS USG-PROPOSED CLEAN ISLAND

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
08WELLINGTON51 | 2008-02-19 21:02 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Wellington

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    VZCZCXRO1767
    RR RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
    DE RUEHWL #0051/01 0502102
    ZNR UUUUU ZZH
    R 192102Z FEB 08
    FM AMEMBASSY WELLINGTON
    TO RUEHC/SECSTATE WASHDC 5069
    INFO RUEHNZ/AMCONSUL AUCKLAND 1622
    RUEHBY/AMEMBASSY CANBERRA 5104
    RUEHDN/AMCONSUL SYDNEY 0641
    RHHMUNA/CDR USPACOM HONOLULU HI
    RHMFIUU/DEPT OF ENERGY WASHINGTON DC
    RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
    RUEHRK/AMEMBASSY REYKJAVIK 0008
    RUEHSM/AMEMBASSY STOCKHOLM 0084
    RUEHLO/AMEMBASSY LONDON 0189
    RUEHKO/AMEMBASSY TOKYO 0695
    RUEHSV/AMEMBASSY SUVA 0721
    RUEHPB/AMEMBASSY PORT MORESBY 0727
    RUEHJA/AMEMBASSY JAKARTA 0088
    RUEHML/AMEMBASSY MANILA 0551
    RUEHBH/AMEMBASSY NASSAU 0001
    RUEHWN/AMEMBASSY BRIDGETOWN 0011

` `

    UNCLAS SECTION 01 OF 03 WELLINGTON 000051

    SIPDIS

    SIPDIS
    SENSITIVE

    STATE FOR STATE FOR EAP/ANP
    PACOM FOR J01E/J2/J233/J5/SJFHQ

    E.O. 12958: N/A
    TAGS: ENRG SENV PREL NZ
    SUBJECT: DOE AND GNZ OFFICIALS DISCUSS USG-PROPOSED CLEAN ISLAND
    INITIATIVE

    WELLINGTON 00000051  001.2 OF 003

    REFTEL:  Wellington 48

    ¶1.  (SBU)  Summary.  Following a visit to Antarctica, U.S.
    Department of Energy DAS Steven Chalk met with a GNZ
    inter-ministerial group chaired by the Ministry of Research, Science
    and Technology (MORST) to discuss a proposed Clean Island
    Initiative, which was first discussed during DOE A/S Andy Karsner's
    visit to New Zealand in January 2008.  GNZ officials welcomed the
    proposal, and agreed to provide further comments to a draft DOE
    concept paper shared with the New Zealand and Iceland governments.
    Chalk and GNZ officials also agreed to meet on the margins of the
    March WIREC meetings in Washington to further discuss the
    initiative.  NZ officials urged that Clean Island meetings be
    scheduled to coincide with other major fora as it is often difficult
    for GNZ officials to travel long distances for meetings.  End
    Summary.

    Clean Island Initiative
    -----------------------

    ¶2.  (SBU)  As a follow-up to DOE A/S Karsner's January 14-15 visit
    to Wellington and Auckland (reftel), DOE DAS Steven Chalk visited
    Wellington on February 12 and met with GNZ officials to further
    review the DOE-proposed Clean Island international partnership.  The
    premise of the initiative is that island nations are particularly
    vulnerable to the negative effects of climate change (e.g., sea
    level rise and extreme weather) as well as energy price shocks
    because many island nations are spending large sums for imported
    fuels.  Developing island countries, with relatively small
    populations, can benefit from technology transfer of renewable
    energy forms from developed island nations.  Developed islands such
    as Iceland, New Zealand, and the U.S. state of Hawaii have already
    made a commitment to renewable energy use and have the potential to
    export best practices to less developed countries.  The purpose of
    the international partnership proposed by DOE is to create an
    information sharing nexus of island nations using renewable energy,
    which will then be placed to assist other interested island
    countries with lessons learned.

    ¶3.  (SBU)  DOE envisions bringing together policy experts, energy
    and technical officials, as well as financial institutions for
    regular meetings to further the use of renewable energies with a
    goal of reaching 70 percent usage on these developed islands within
    a single generation.  Success will be defined and measured in a
    number of ways; chief among them will be measurable adoption and
    transition to renewables and higher energy efficiency.

    ¶4.  (SBU)  Initially, DOE foresees limiting participation within the
    partnership to developed island nations that have made a significant
    commitment to renewables, have invested in research and development,
    and defined policy statements and strategies for achieving carbon
    neutral status.  Given that developed countries are still refining
    their deployment of renewables and research/development efforts are
    continuing, DOE believes that it would be premature to include
    developing island nations at the outset of the partnership.

    GNZ Officials React to the DOE Initiative
    -----------------------------------------

    ¶5.  (SBU)  In an inter-ministerial meeting hosted for DAS Chalk by
    MORST's Director for Environmental and Social Development, Eric
    Pyle, Chalk briefed the group regarding the Major Economies meeting
    that recently had taken place in Hawaii.  The meetings had been
    productive and the USG was encouraged that post-2012 goals would be
    quantified in the near future, said the DOE official.  Chalk offered
    that the USG had worried some countries might wait out the current
    Administration, but that had not been the case.

    ¶6.  (SBU)  The DOE recently signed an MOU with the Governor of
    Hawaii that will lead to 70 percent renewable energy use within one
    generation, said Chalk.  The Hawaiian island of Lanai will be a test

    WELLINGTON 00000051  002.2 OF 003

    case, where DOE hopes to meet the 70 percent target in a few years
    through a mixture of addressing institutional barriers, policy
    changes, technical fixes, and private financing.  Grid integration
    will be a key element to large-scale renewable use and DOE will work
    with utilities in Hawaii, he added.

    ¶7.  (SBU)  Chalk welcomed the opportunity to review the concept
    paper for the Clean Island initiative that DOE A/S Karsner had
    discussed with MORST CEO Helen Anderson during the former's
    mid-January visit to New Zealand (reftel).  He noted that the
    document remains a draft concept paper, and DOE welcomes further
    refinement from New Zealand.  DOE would like to meet on the margins
    of the March WIREC meetings in Washington to discuss the initiative
    in greater detail in preparation for holding the first meeting in
    Iceland in June.  The goal would be to bring together technology,
    policy, and financial officials for moving island nations to advance
    clean energy deployment on a large scale.  Chalk noted that DOE
    would like to foster longer term public-private partnerships -
    particularly in the area of financing biofuel development through
    venture capitalist investment - and that government-backed loans may
    play a role.  A/S Karsner, emphasized Chalk, hopes that the
    initiative will lead to executable plans for measurable results,
    e.g., 70 percent use of renewables in one generation and where
    appropriate, 100 percent use.  In addition, reduction in demand and
    increased energy efficiency are also important components.  Chalk
    said that Hawaii pays US 20 cents/kilowatt hour for electricity,
    which is five times the US mainland price - renewables are therefore
    competitive in terms of price.

    ¶8.  (SBU)  While some renewable energy sources, e.g., wind and
    geothermal, are already deployed, more work is needed to improve
    cellulosic biofuels, plug-in hybrid vehicles, wave/ocean power and
    hydrogen, Chalk mentioned.  As far as geothermal work is concerned,
    the DOE official noted the strong synergy between New Zealand,
    Iceland and the state of Hawaii.  He pointed to the international
    bank established by Iceland (with government backing) to finance
    geothermal projects as an example of the type of policy approach
    needed to advance use of renewables.

    ¶9.  (SBU)  GNZ officials responded positively to Chalk's remarks and
    expressed strong willingness to collaborate on the Clean Island
    Initiative.  Roger Fairclough, Manager of Fuels and Crown Resources
    at the Ministry of Economic Development, said that MED would be keen
    to share paradigms and learn from other states' experiences.  He
    agreed that large-scale deployment of renewables is key to
    transformational change for islands.  Ministry of Transport
    officials Simon King and Tony Frost also welcomed the initiative,
    noting that the GNZ has targeted electric vehicles as part of New
    Zealand's sustainability plan.  Both noted that renewable energy use
    for electricity generation in New Zealand is not problematic due to
    NZ's plentiful natural resources; the transport sector - as in
    Iceland - is the biggest challenge.  Air New Zealand and Boeing are
    reviewing use of biofuels for air transport, they said, to address
    tourism concerns over the greenhouse gas emissions associated with
    long-distance air travel.  Transport officials urged that the Clean
    Island Initiative focus on a systems approach towards the demand
    side of transport needs within island communities.  They also noted
    that each participating country in the Clean Island Initiative will
    have different resource endowments and different priorities and
    strengths.  New Zealand, for example, does not have a domestic
    automobile manufacturing capability so has little relevant research
    and development to share for that sector.

    ¶10.  (SBU)  GNS Geothermal Manager Colin Harvey and General Manager
    of Research Robin Falconer noted that New Zealand has a heavy
    research strategy focus on renewables, with geothermal work now
    pushing into non-traditional areas, i.e., low-temperature heat.
    Harvey offered that geothermal provides opportunities for small,
    isolated communities, and that New Zealand had worked with United
    Technologies from Alaska.  Oceans and tidal energy will require
    weather forecasting models, he added.

    WELLINGTON 00000051  003.2 OF 003

    ¶11.  (SBU)  GNZ officials asked Chalk about the scale of renewable
    deployment in Hawaii; Chalk estimated that it would require 5-10
    gigawatts, noting moving to renewables not only entails replacing
    power but also generating capacity as well.  There are integration
    and control limitations, but these engineering issues and not
    scientific ones, he added.

    ¶12.  (SBU)  In discussing the format for future Clean Island
    meetings, GNZ officials urged that the USG try to combine meetings
    with other established fora likely to draw the same participants to
    reduce additional travel.  Roger Fairclough noted the growing number
    of biofuel meetings and suggested that the Clean Island initiative
    might coincide with the APEC experts group meetings.  Chalk promised
    to relay the contents of his meetings to A/S Karsner and rework the
    draft concept paper accordingly for further discussion in Washington
    during the March WIREC meetings.

    ¶13.  (U)  DAS Chalk cleared this message.

    KEEGAN

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