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Ensuring more electric vehicles can run on New Zealand-made energy needs to be seen as an issue of national security and dual fuel peakers that can run on gas or diesel can help solve the dry year issue while also improving diesel storage, unlike the LNG import terminal.
Right now, diesel prices are ramping up and some are worried we won't have enough supply to keep the economy going. We have a set amount of fuel storage in New Zealand, but if we had more EVs in the fleet we would need less of that for petrol and could devote more of it to diesel. While the majority of light vehicle fuel consumption is petrol, 1/3 is still diesel from most of our utes and vans, so electrifying these light commercial vehicles would also significantly reduce our current diesel demand. Taking both together - the reduced diesel demand from easier-to-electrify light vehicles, and the increased storage capacity from reduced petrol demand - we'd increase our diesel storage capacity significantly for our harder-to-electrify sectors.
If all our light transport fleet was electrified, it would equate to 37.5 days of diesel storage.
If one third of our fleet was electric, as it is in Norway following a decade's worth of policy support, that would give us an additional eight days of storage.
At our current rate of EV adoption, with just 2% of the fleet electric, we have just 0.5 days.
Fuel security is also relevant when it comes to the decision to build an LNG import terminal. The primary reason it has been suggested is to solve the dry year issue - although it is also clearly about keeping gas users hooked and letting the gas industry play for time. But our portfolio approach can kill two birds with one stone.
Along with rapid build out of large-scale renewables, mass adoption of rooftop solar and batteries on homes, farms and businesses to keep our hydro lakes full, and assistance for gas users to electrify, we also believe we should invest in dual fuel peakers that can run on gas or diesel and offer added diesel storage.
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Rather than an investment of $1-$2.7 billion into LNG for no added fuel security, an investment of around $400-$800 million could add 120 million litres of additional fuel storage (11-12 days). This would come at a much lower fixed cost than the LNG terminal but at a higher fuel cost and it would still push electricity prices down in the same way by removing the cost of dry year risk in electricity bills. And if we build those renewables quickly enough, we may not need to use it.
A very cool 'floatovoltaics' project makes use of unproductive pond space and also helps those struggling with their energy bills; renewables push down the price of electricity to nothing (or less than nothing) in Scandinavia and South Australia and New Zealand has an opportunity to follow suit; France goes hard on electrification, while the UK builds better; Aussie truckies reckon electrification will take decades but much bigger electric machines are here now, including some from Volvo; hydrogen generators are an innovation we do not need; the Speight's brewery gets off the gas with a $7.2 million electric boiler; and a bit of 'solarcasm' demonstrates how going off-grid is now an option for some.
Read moreDownloadA 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.
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