The 'Electric Election': energy policies, side by side
"The document - released in full following the ruling [from the Ombudsman] - concluded access to liquefied natural gas was unlikely to affect average electricity prices and there were other ways to improve New Zealand's energy security."
That's from RNZ's story about analysis from Concept Consulting that was kept secret. And it's another nail in the coffin given price reductions have been the Government's primary justification for spending so much public money.
"Chief Ombudsman John Allen found the document provided 'important context and limitations' for the advice and modelling. He found the reasons for withholding it were not valid, and even if they were, there was 'very high' public interest in releasing it, especially in an election year."
We agree. And kudos to Lawyers for Climate Action and others for pushing to have the advice released.
The secrecy is bad enough, but since the Government announced the LNG terminal, things have changed. And when things change, as the famous quote goes, so should minds.
LNG was chosen as the best solution to our dry year issue on the basis that it would add a cost of roughly $4/MWh to electricity while removing a risk premium passed through in electricity bills of $10/MWh.
In the real world that would mean households would save about $50 per year on their bills with LNG (assuming a net saving of $6/MWh).
Since this initial analysis was undertaken, however, the $10/MWh risk premium is gone - not because of the LNG announcement but because we have rapidly built a lot of new renewable generation and there is plenty more in the pipeline.
Contracts have also been put in place to share the cost of maintaining the Huntly Rankine and keep a healthy stockpile of coal to run these in a dry year.
It would have been helpful to have LNG available in 2024 when prices spiked, but electricity supply has improved a lot since then and we have time to reassess our options. It would be dead on arrival.
So why, despite all the expert views saying there are better options, is the Government still racing to lock in an investment that risks pushing electricity bills up higher than they need to be and locking this cost increase in for 15 years or more, when lower cost long term dry year solutions are available?
'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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