Summary note: - Capital investment in Ināia tonu nei scenarios

The numbers provided are consistent with the cost analysis and figure presented in Section 8.2.1 (Costs and savings from the energy transition) of the Commission’s report, Ināia tonu nei. [...] For the purposes of costing the Demonstration Path against the CPR, we have used a sensitivity run in ENZ which: • Excludes changes in transport demand and mode shift; • Excludes energy efficiency in buildings and process heat; and • Assumes the same rate of reduction in the cost of new renewable generation as the CPR.1 1 The CPR assumed a slower rate of reduction than in the Demonstration Path an. [...] Similarly, mode shift could mean lower capital investment in vehicles if it reduces the size of the fleet (by far the largest source of capital expenditure in our analysis), but may involve additional infrastructure investment which we have not attempted to cost. [...] • Investment in gas infrastructure – we would expect this to be lower in the Demonstration path than in the CPR • Upstream investment in fossil fuel supply • Land use change to exotic forest – there is no difference in area converted to 2030 between the Demonstration path and CPR. [...] We would make two points around the time profile of the investment shown: • In electricity generation, the model run used constrains the build out to 2025 to be the same as the CPR.