NZ Moves to Unlock Offshore Wind Potential with Key Legislative Amendments

The New Zealand Government is moving forward with significant changes to legislation aimed at unlocking the country’s vast offshore wind potential, Energy Minister Simon Watts announced. The adjustments are designed to provide greater clarity for investors, resolve conflicts with seabed mining, and pave the way for large-scale renewable energy development.

Offshore Wind as an Economic Opportunity

Minister Watts emphasised that New Zealand has “some of the world’s greatest offshore wind potential,” positioning the country to generate both clean energy and economic growth. Offshore wind is expected to provide a long-term boost to energy security, reduce reliance on fossil fuels, and contribute to climate change targets, while also fostering regional development in coastal areas such as South Taranaki.

However, offshore wind projects require substantial upfront investment. To attract developers, the Government introduced the Offshore Renewable Energy Bill in 2024, establishing a clear regulatory framework. According to Watts, the legislation is a cornerstone for building investor confidence, but industry consultations highlighted concerns that competing marine activities—particularly seabed mining—could create uncertainty and limit development.

Addressing Industry Concerns on Coexistence

During the Select Committee process, offshore wind developers expressed fears about overlapping rights with seabed mining operations. In response, Cabinet has approved amendments to the draft legislation to provide more certainty.

The changes will allow the Government to designate specific marine zones through secondary legislation where offshore renewable permits may be invited. While these areas are reserved for wind energy projects, new seabed mining permits under the Crown Minerals Act will be temporarily paused within them.

“This is a pragmatic step to address a key concern raised by the industry,” Watts explained. “By providing clear, designated areas for offshore wind, we’re creating the investment confidence needed to kickstart the sector.”

Impact on Seabed Mining and Petroleum Activities

The restrictions will apply only to seabed mining and will not extend to petroleum activities. Importantly, existing mining permit holders will retain their rights to prospect, explore, and operate. The Government has committed to carefully considering the impact on current mineral projects when determining designated offshore wind areas.

Watts added that the expectation is for the offshore wind and minerals industries to engage in constructive discussions to explore how both sectors may operate alongside each other where necessary.

Next Steps and Likely First Site

While the Government has not confirmed the exact location of the first designated offshore wind development zone, South Taranaki—already a hub of offshore energy activity—is considered the most likely starting point.

An Amendment Paper formalising the legislative changes will soon be drafted and introduced. Once enacted, the new provisions are expected to streamline the development process, bolster international investor confidence, and accelerate progress toward New Zealand’s renewable energy and emissions reduction goals.

A Balancing Act for Sustainable Development

The move underscores the Government’s broader commitment to balancing environmental sustainability with economic opportunity. Offshore wind is set to play a central role in New Zealand’s future energy mix, but the careful management of coexisting marine industries will be critical.

By offering certainty to developers while safeguarding existing mineral rights, the Government hopes to establish a foundation for both innovation and collaboration in the evolving offshore energy landscape.