Offshore Renewable Energy Act passes into law

After a protracted period of legislative development, New Zealand finally has a bespoke permitting regime for offshore renewable energy developments in the form of the Offshore Renewable Energy Act 2026 (Act).

The Act, which received Royal Assent on 9 July 2026 and entered into force the following day, creates a two-stage permitting regime for potential offshore renewable energy (ORE) developments (i.e. wind, solar, wave or tidal):

1. Developers first apply for a feasibility permit in regionally specific application rounds before a further commercial permit may be applied for, which gives effect to any consents authorising the development.
2. Once a permit is obtained, applicants have the option to seek approvals through standard or fast-track processes.

Responses to the Act’s passing from the renewable energy industry, and particularly wind developers, have been positive, although the Act is too little, too late for some. This insights article provides a brief overview of the Offshore Renewable Energy Act, and canvasses reactions to the Act thus far. It also looks forward to the key milestones in the regime for those looking to take advantage of the certainty afforded to potential ORE developments.

Stage one: feasibility permits

The first step in the Act’s two-stage permitting regime is to obtain a feasibility permit. This enables a permit holder to assess the feasibility of an ORE development within a geographic area. If the development ultimately proves feasible, this permit provides the applicant with the exclusive right to apply for a commercial permit in respect of that development. It also allows a permit holder to apply for resource consent or marine consent for ORE generation infrastructure activities.

A permit is granted for seven years but may be extended upon application to the Minister for Energy (see section 36 of the Act).

Applications for a feasibility permit may only be made during an application round, initiated by the Minister for Energy (the Minister). When announcing the Act’s passage, Energy Minister Simeon Brown indicated that the first round may open in the next few months.

Before applying for a feasibility permit, certain requirements need to be met, such as undertaking consultation with specified Māori groups (see section 14 of the Act). An application must include a development plan, specify the ORE feasibility activities that the applicant intends to commence within 12 months of the permit’s start date and comply with information requirements prescribed by regulations (see section 15 of the Act).

Once an application has been lodged and has been publicly notified by the Minister, any person who wishes to submit must be given reasonable opportunity to do so (see section 16 of the Act) before a decision can be made.

In considering an application, the Minister must take into consideration the following matters (see section 18 of the Act):

• whether the proposed development is likely to deliver benefits for New Zealand, is consistent with the purposes of the permit and Act and that the applicant has the capacity to undertake the development;
• an applicant’s compliance record, consultation, approach to identifying and potential impact on relevant Māori interests, any submissions on the application and other considerations specified in the application round or regulations; and
• whether the applicant poses any significant risk to national security or public order and if this risk can be managed.

Once a feasibility permit and relevant consent is obtained, developers may progress to the second stage.

Stage two: commercial permits

In this second stage, developers may apply for a commercial permit, which enables a holder to give effect to a resource or marine consent that authorises ORE generation infrastructure activities (see section 11(2) of the Act).

In terms of pre-application consultation, equivalent requirements exist for Māori groups (see section 23 of the Act) as in the first stage, while applicants must also consult Transpower and the Electricity Authority prior to making an application (see section 24 of the Act).

Applicants also face similar information requirements, with the notable addition of a decommissioning proposal and cost estimate (see section 25 of the Act). Permit holders (or former holders) are required to carry out and meet the costs of decommissioning their ORE infrastructure.

Public notice of an application must be made, but there is no general requirement to allow the public reasonable opportunity to submit on the proposal (unlike for a feasibility application) (see section 26 of the Act).

Mandatory considerations for determining a commercial permit are that the proposed development is consistent with the purpose of the permit, the Act’s purpose and good industry practice.

The permit holder must continue to possess the capacity to undertake offshore renewable energy (ORE) generation across the project’s lifespan and additionally must be ready to begin the proposed development within a reasonable time. Applicants must also be highly likely to comply, on an ongoing basis, with their decommissioning, financial security and any other obligations under the Act (see section 28 of the Act).

Commercial permits have a duration of 40 years (see section 30 of the Act), although the Minister may grant a further extension of up to 40 years. The Minister also holds various powers to ensure the flexibility of the regime, including to vary a permit, grant permit conditions and revoke or surrender permits.

Broader implications of obtaining a feasibility or commercial permit for developers

• Once developers acquire a feasibility or commercial permit, ORE infrastructure activities cease to be ineligible activities for the purposes of the Fast Track Approvals Act 2024, and they may enter the fast-track process
• In response to concerns raised at select committee that the Act failed to guard against consents being granted for other, non-ORE uses, the Act now provides for the designation of areas to manage competition with seabed mining proposals. Within a designated area, no new seabed minerals permits may be granted, and no extensions may be made to existing seabed minerals permits or petroleum permits (see section 63 of the Act).
• The Minister may declare safety zones up to 500 metres from any ORE generation infrastructure or substation, within which restrictions may be placed on vessel access or certain activities (see section 67 of the Act). Permit holders may apply to the Minister for an area to be declared a safety zone when submitting their commercial permit application or after that date.

Key milestones

The road to the Offshore Renewable Energy Act’s passing has been long. It has been two years since National announced the development of ORE-specific regulation and four years since consultation began on the regime under the previous Labour government. With delays in settlement of policy parameters and drafting, and the uncertainty created by competing seabed mining proposals offshore Taranaki, at least three offshore wind developers (BlueFloat, Sumitomo and JERA Nex bp) withdrew from the race and ceased their New Zealand operations. Questions have also been raised (by some but not all developers) about the absence of revenue-stabilising mechanisms in the Act, such as contracts for difference, to guarantee a floor price for electricity – a topic which generates much debate in the wider electricity industry.

In spite of this, industry representatives, such as the New Zealand Wind Energy Association, have welcomed the Act’s passing and described it as a “significant milestone.” Additionally, developers have indicated that the first offshore wind farms could be commissioned as early as mid-2030. It will be interesting to monitor whether the Act is flexible enough to accommodate non-wind ORE developers.

For our part, although not without some challenges for developers, we believe the new statutory regime is robust and well conceived.  It should provide a sound platform for a nascent offshore wind industry looking to harness our incredible offshore wind resource, for the benefit of New Zealand.  Whether some form of initial price support mechanism is indeed necessary, and whether some form of government-led facilitation is available to assist with the infrastructure readiness challenge associated with large offshore wind projects, are policy matters to resolve.  We would expect further engagement with government on both fronts.  We would also expect further engagement between developers and other users of the marine space.

Some key milestones for developers to look out for are:

• The opening of the tender round for applications for feasibility permits in the next few months.
• Time frames for applying, and for determining feasibility permit applications — these will be specified in the terms of an application round once it opens.

For advice on navigating the new offshore renewable energy regime or any questions you may have, please don’t hesitate to get in touch with Brigid McArthur or Francelle Lupis.

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