The 'Electric Election': energy policies, side by side
As Minister of energy, climate and local government, Simon Watts had a great opportunity to push the country towards cheaper, cleaner and more reliable New Zealand-made energy. And that’s why we laid down a challenge and gave him the ‘MegaWatts’ moniker last year. Rewiring Aotearoa CEO Mike Casey says he did some good things, like enabling more solar on farms, removing tax on solar exports, fixing onerous solar consenting requirements, putting pressure on the lines companies to pull up their socks, and getting the ball rolling on the Ratepayer Assistance Scheme. "But the LNG import terminal appears to have been a defining issue."
The Prime Minister opened the door for a reversal this week when he said the LNG terminal would only go ahead if the commercials stacked up.
"Those commercials were already dubious, but they have changed considerably since the conflict in Iran started. The decision also had an impact on the private sector, with Channel Infrastructure pausing its diesel peaker project at Marsden Point immediately after it was announced."
Casey says there have been plenty of concerns raised about the LNG terminal and the way it was to be funded - from a diverse range of groups.
“That's probably why energy has been handed back to one of National's most senior ministers, Simeon Brown," Casey says. "It's deeply unpopular and they need to kick it. Let's be honest, it's a trojan horse to delay our transition off gas to save them money and lets the oil and gas industry gamble $200M of taxpayers’ money to strike it lucky with a new domestic gas field."
Casey hopes the new energy minister, who previously held the portfolio, will be able to look at energy security and affordability with a fresh pair of eyes ahead of the election.
"We look forward to sharing with him our alternative plan, which solves the dry year issue, reduces costs for New Zealanders and frees up two-thirds of our domestic gas for far less than a large and risky market intervention that would not significantly reduce bills for everyday New Zealanders."
MegaWatts may have hung up the cape when it comes to energy, but he still has a chance to be a hero to voters this election by making it far easier for homes, farms and businesses to electrify their gas appliances and put solar on their rooftops and batteries in their garage.
He said yesterday at the Downstream conference that he was “frustrated with the slow progress around energy affordability”. There is a policy sitting in front of the Government right now that could save New Zealanders $1,000 to $2,000 per year - the Ratepayer Assistance Scheme - and Watts could enable it now and have it delivering savings to households by the end of the year.
The scheme is also supported by Auckland Council, so it will be of interest to him given his new Minister for Auckland role.
While some question the role of rooftop solar and batteries, there are over four million Australian homes saving thousands each year on their bills with this technology and many additional Australians will benefit from free power in the middle of the day. A lot of a little is a lot and 80% of homes with good sized systems would add around 40% more generation in New Zealand and 50,000 farms with solar (ideally on unproductive land) would produce another 60%.
“Personally, I really liked Simon Watts. He seemed to understand how much electrification could do for New Zealanders and for New Zealand, but ultimately he picked a white elephant and learned they’re very hard to carry.”
Casey says there is still time to take action for consumers and enable Energy Impact Loans through the RAS this term. And there is also a chance to help more New Zealanders save money in EVs in his role as Minister of Revenue through fringe benefit tax relief and accelerated depreciation for businesses and salary sacrifice leasing schemes for workers that could get them into a new EV for $200 per week with insurance, charging and maintenance all covered.
'Twas the night before Chris-mas, and all through the house, all the voters were stirring, the pundits showing their nous … the election will soon be over, but the energy crisis won't, so we'll be there to pester whoever is in power about the need to run more of the economy on New Zealand-made energy; can Ethiopia's aggressive push for EVs work and how does New Zealand compare in terms of adoption rates?; a two-way charging trial from Genesis shows promise in Auckland, but there's still a way to go before it's mainstream; small electric vehicles are often overlooked when it comes to electrifying transport, but it's hard to miss this weird French one; a solar-powered cafe (and some electric coffee); and we endorse the political vandalism of Keith of All Trades.
Read moreDownloadPoliticians are being urged to adopt stronger electric vehicle incentives ahead of the election. Climate and energy advocacy group Rewiring Aotearoa is arguing that EVs are one of the most effective long-term solutions for rising transport and energy costs. They're promoting an EV Salary Boost proposal, which would allow workers to access EVs through pre-tax salary arrangements – similarly to already existing schemes in the UK and Australia. Policy and Government Relations Spokesperson Ngaio Neumegen told Kerre Woodham that even with the rising cost of power, it's still cheaper to run an EV than a car running on imported fuel.
A proposal that would let New Zealanders lease an electric car using their before-tax pay has not won a commitment from either National or Labour, with the 7 November election days away. Under the EV Salary Boost, put forward by Rewiring Aotearoa and Drive Electric, an employee would lease a new or used EV for three to five years. The payments would come out of their pay before tax, lowering the cost of running the car. The idea is based on Australia’s novated leasing system, though the groups say they are not proposing a direct copy.
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