"Perhaps part of the problem in the past has been that the decline of Maui was regarded as being over the planning horizon; another is that governments tend to be driven, in part, by short term considerations," Small told EnergyReview.Net.

"This is a matter which is vital to the New Zealand economy; the centre is being set up for the benefit of the whole country and will address a real national need. The business school believes that further research and academic excellence is crucial for the energy sector, business and the community."

He said the centre, based within the university's business school, would provide national research leadership for the industry and contribute to the country's sustainable economic development by offering a unique independent forum for the study of energy systems and issues.

Small rejected any suggestions that it was too late to establish such a centre, given that the dwindling Maui gas field could all but be extinguished by 2006.

"These issues are not going to go away; there's a very real need to be forward thinking and this should be seen as an example of what can and should be done," he told ERN.

The centre has the support of such energy leaders as Contact Energy boss Steve Barrett, BP New Zealand head Peter Griffiths, and NGC chief executive Phil James. It will address a variety of issues, including gas exploration, investment and trading; electricity market design and risk assessment; the impact of new technologies; and the viability of alternative fuels.

Obvious questions the centre would seek to answer included what was the best way to manage our gas reserves? How much reserve capacity does the electricity sector need? How should the electricity market work? How should the Kyoto Protocol constraints be reflected in emission taxes for coal? Should the government be more involved in energy efficiency?

The centre intends forming research linkages with other national and international energy centres; as well as promoting interdisciplinary research into energy-related topics, and encouraging collaboration among academia, industry and government.

The establishment of the centre was only possible because of a multi-million-dollar donation to the school from an anonymous New Zealand-based trust. "While the people involved in this trust believe energy research and planning are vital to the economy, they have no direct or even indirect involvement in the industry and therefore no potential conflicts of interest," Small concluded.