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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."
When Mike Casey bought his house near Cromwell, it came with gas bottles on the side of the home for water and an expensive diesel system for the underfloor heating. He replaced both of them with a Steibel Eltron system and it's been saving him money ever since. As technical manager Bhawesh Singh told him at the Electrify Queenstown conference, there has been a big influx in enquiries from homes looking to get off the molecules and onto electrons.
Read moreDownloadConfidence that cutting regulations to make solar power more accessible - won't jeopardise people's safety. A new Regulation Ministry reports laid out a potential blueprint to legalise plug-in solar and reduce the time and cost of panel installation. Rewiring Aotearoa CEO Mike Casey shares his thoughts with Andrew Dickens.
The burgeoning demand for solar was also a chance to address a mismatch between the numbers of training opportunities available and young people searching for work, Casey said. "The mums of New Zealand are telling me that there's not enough apprenticeships for their kids and the solar installers of New Zealand are telling me there's not enough trained people."
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