During similar sale processes in Australia, retail incentive plans were established, such as loyalty rights where investors received a top-up of additional shares for remaining on the register for a period of time.
"This would enhance the potential investment return for local investors and could be an approach the Government may consider using," he said.
The Government has confirmed it will proceed with the partial sell-down of Mighty River Power, Genesis, Meridian and coal producer Solid Energy. A further sell-down of the Government's stake in Air New Zealand will also be undertaken.
The Government expects to raise between $5 billion and $7 billion from the sale process. The companies will be listed on the NZX with the Government retaining 51% ownership.
Prime Minister John Key told the Otago Daily Times completing the mixed ownership model was one of his primary goals for the next term of Parliament.
It would provide investors with options, give a boost to the NZX and help the rebuilding of Christchurch without the need for borrowing.
The main opposition for the sales process had come from National's political opponents who believed the electricity assets would fall into the hands of overseas investors.
Mr Lister said the Government indicated it expected 85% to 90% of the shares sold as part of the process going to New Zealand investors.
"This will obviously include KiwiSaver funds and other large wholesale investors, although I suspect the Government will have no trouble at all generating significant levels of interest and participation from retail investors."
According to the Reserve Bank, at the end of 2010 New Zealanders had a "whopping" $98 billion on deposit with registered banks. Five years earlier, the corresponding figure was $55 billion.
One explanation for the 61% increase in bank deposits was undoubtedly investor concern over the economic environment but it would also suggest it was due as well to the lack of investment options available in New Zealand, Mr Lister said.
The finance sector had disappeared, property looked uninspiring and the sharemarket was tiny with a limited number of good quality high-dividend paying companies.
Given the returns that were on offer for bank deposit rates, some of the $98 billion would probably gravitate towards the $5 billion to $7 billion of energy company shares, he said.
The impact of KiwiSaver should not be underestimated. At the end of September there was $10.5 billion in national KiwiSaver accounts, 45% more than the $7.2 billion a year earlier.
KiwiSaver contributions and balances would continue to grow over time and providers would welcome more local options for the investment of those funds on behalf of the 1.8 million New Zealanders who had a KiwiSaver account, he said.
The New Zealand sharemarket would become dominated by electricity companies as the Government's partial sell-down programme got under way, he said.
Mr Lister did not see that as necessarily a bad thing.
"Much like Australia, which has become a market dominated by mining and banking stocks, New Zealand would be dominated by electricity companies. I don't think there will be too many issues caused by having a dominant sector in this way."
Most investors and KiwiSaver funds had the ability to invest in New Zealand, Australian or global shares and they would consider their portfolio as a whole, rather than in isolation of one geography, he said.
Investors might use New Zealand to gain their electricity sector exposure, Australia for mining shares and the United States for technology companies.
Mr Lister said it was early days and details on structuring, pricing and other considerations were limited.
"But the investment opportunities across the companies in question appear attractive. The three electricity companies have strong existing market positions due to the incumbent nature of generation assets, they are profitable businesses and they have the potential to grow earnings at least in line with economic growth."
Solid Energy also had a strong portfolio of assets and a track record of growth. Air NZ, the smallest of the deals given that it was already listed, was less suitable for conservative smaller investors given the nature of the airline industry, but it still remained a good, well-run business and the interest from larger institutions and existing investors would be solid, he said.
