Don't listen to Old Man Gas. Ditch LNG. Support New Zealand-made energy!
.png)
A big part of our New Zealand-made energy plan is helping gas users get off the pipes and onto the electrons. Now Business NZ has added its voice to the debate, suggesting that the $200 million set aside to help the oil and gas industry is instead used as loans to help businesses electrify. The rare call for support came after it released a report showing that the businesses reliant on gas were struggling with increasing prices and their closure would have a massive impact on jobs and the economy.
As director of advocacy Catherine Beard told RNZ: "The reason it's getting expensive is because there's not enough of it. So if we actually free up a bit for those that you know can't move for maybe 10 years, then we think the transition will go a lot better."
We concur.
She said the $200 million the government set aside for co-investment in oil and gas exploration was unlikely to be used and could help fund the loans.
"Businesses faced a cost barrier in switching from gas to other energy sources, so interest-free or concessionary loans from the government could help."
Around one third of businesses that use gas could switch economically now. Another third would need some help, perhaps with something like these loan schemes. And another third has limited options to switch. But the more businesses we can switch, the more of the shrinking gas pie will be left for those that need it.
We should not be buying a lottery ticket and hoping we find more oil and gas. We should instead be helping businesses electrify and then ensuring we create the cheapest possible electricity. That is a massive productivity opportunity for New Zealand and, as other countries with very cheap electricity have found, it could also help reverse the deindustrialisation we're currently seeing and attract more businesses here.
"If I had a political legacy, I wouldn't be happy to have have boosted energy supply and forgotten about the demand side - and there's no point in having this energy in the future if there's no one left to use it."
Political Power has gone local! Dr Nick Smith, mayor of Nelson and ex-National Party minister, is an early adopter when it comes to electric machines but, through his efforts with the council and his close involvement with the Ratepayer Assistance Scheme, he's also embracing one of Rewiring's core mantras: once you've electrified your own life, electrify someone else's life, too.
Read moreDownloadWhether it's the growing number of electric buses, new electric trains for the lower North Island and City Rail Link, or new electric ferries, we love seeing more electric transport options in our big cities. It's also good to see some of our smaller cities like Palmerston North, Timaru and Nelson going electric and, as is almost always the case, the drivers reckon it's better on electrons. At the Electrify Nelson expo, we spoke with one driver Lee about the city's electric buses. And he definitely wouldn't go back to diesel.
Read moreDownload
