The case for energy loans: read our latest explainer
With the repeal of the oil and gas exploration ban, we're basically investing in Nokia after the iPhone was released. As Rewiring Aotearoa's Mike Casey says, gas is inefficient, it's expensive, not much has been found in New Zealand despite plenty of attempts, and what we do have is running out faster than expected. So why are we investing in an increasingly obsolete technology?
We still need some gas for industry (which is by far the biggest user) and electricity generation (in the short-term), but continuing to back gas ignores economics, emissions and the role that cheaper, cleaner renewable electricity - much of it from large scale and rooftop solar and more of it stored in batteries - is playing elsewhere.
Critics of the ban suggest that it has led to deindustrialisation, but more renewables in the system should help to bring the price of electricity down (and more solar can bring it right down in the middle of the day). In the case of South Australia, that is attracting more businesses that want cheap, reliable, low-emissions electricity and we won't get that from gas.
Biogas isn't a saviour, either. Even if all sources of biogas in Auckland were activated, this would only meet 4% of the network's current demand. And hydrogen isn't ever going to be the sensible, safe, or affordable substitute.
When it comes to running our homes (and cars), electricity is the clear winner - unless you're keen to pay more to give your kids asthma, in which case gas is a great option.
There have been plenty of positive signals from this Government around solar and the geothermal strategy is promising, but encouraging and investing in gas is backwards looking.
In the last Electric Avenue of 2025, we look at the two biggest trends in the world of energy; the Government goes electric for its fancy fleet upgrade; Nick Offerman offers his services to a US campaign extolling the virtues of EVs; Australia shows what's possible in new homes when you add solar, batteries and smart tech; a start-up selling portable solar and battery systems that wants it to be as easy and common as wi-fi; and The Lines Company looks to put some solar on the roof of the Ōtorohanga Kiwi House.
Read moreDownloadWhen it comes to electric farming, "the numbers are becoming undeniable," says Nicholson Poultry's Jeff Collings. With 60kW of solar, a Nissan Leaf as a 'farm quad', electric mowers, an electric ute that can run a water blaster, and even a chicken manure scraper made out of a wrecked Tesla that, as Rewiring's Matt Newman says, looks a bit like something out of Mad Max, "almost everything is electric". There aren't many others in New Zealand who have gone this far down the electric road. And, with his electric Stark Varg, the fastest off-road motorbike in the world, he's obviously having plenty of fun on that road, too.
Read moreDownloadRNZ's Kate Newton reports on the "madness" of thousands of new piped gas connections being installed into houses every year, despite dwindling supplies and higher lifetime costs.
Casey said it was positive that the numbers showed people starting to leave the gas network of their own accord, but not all households were in a position to make that choice.
"If we don't plan for a decommissioning of the gas network, then it's going to be a chaotic transition, where vulnerable New Zealanders really suffer."
As the research of Rewiring and others has shown, gas is expensive, it's getting more expensive, it's terrible for your health when burned inside and there are substitutes available right now that, on average, do the same job for less money over the long run for households, would save the country billions on health costs and lost productivity, and don't pump out unnecessary emissions.
Around 300,000 homes and businesses have connections to the gas network (it’s estimated another 300,000 use more expensive bottled gas, mostly in the South Island). The number of active connections has started to decline recently and the country’s largest gas network, Vector, is forecasting no new residential or commercial connections after 2029.
Upfront capital costs are the main barrier for many homes, which is why we're working hard on a low-interest, long-term loan scheme that can be used to pay for electric upgrades, including hot water heat pumps. This would mean paying for a new thing with a loan would be cheaper than paying to run the old thing.
Read more about the scheme here.
Disconnection costs are also a major barrier. We have seen examples where households permanently disconnecting from the network have been charged between $1,000 and $2,000 to have a meter permanently removed (i.e. digging up the pipes to the road), even though it should only cost customers $200 to have the connection capped at the house.
RNZ even reported a case where a business customer was quoted $7,500 but took the case to Utilities Disputes, where complaints about disconnection costs have been rising.
The Australian Energy Regulator and the state of Victoria have now capped the disconnection fees to a few hundred dollars to stop this kind of behaviour and protect households.