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2030 energy challenge demands forward-looking solutions, not costly LNG lock-in from the past
A newly formed coalition of leading business, consumer and energy organisations has today unveiled a renewable-led strategy to strengthen New Zealand’s energy security, warning that LNG import infrastructure will lock the country into higher costs, imported fuel risk, and outdated energy thinking.
The Smart Energy Alliance NZ, initiated by SEANZ and joined by Master Electricians, Sustainable Business Network, Consumer NZ, Rewiring Aotearoa, and the NZ Green Building Council, is calling on the Government to delay any LNG commitment until a full system-wide assessment of alternatives is completed.
The alliance’s proposal presents a coordinated lower-cost, lower-risk pathway built around accelerated renewables, battery storage, demand flexibility, energy efficiency, electrification, and smarter hydro management.
SEANZ Chief Operating Officer Gareth Williams says New Zealand is at a pivotal moment.
“New Zealand has a world-leading advantage around renewable energy and a once-in-a-generation opportunity to build an energy system that is cleaner, cheaper, more resilient, and more sovereign.”
“The real risk is locking ourselves into imported fossil fuel infrastructure just as renewable technologies, storage, and smart demand solutions are becoming the most effective way to strengthen energy security.”
The alliance says dry-year challenges should be addressed as part of a broader national energy strategy, rather than through a single high-cost infrastructure decision.
Its proposal calls for:
The alliance wants New Zealand to take a portfolio approach combining renewable generation, storage, efficiency, flexibility and selective transitional fuels can deliver greater energy security at materially lower cost and risk than LNG.
“We don't believe that the government's proposal for a LNG terminal is good for consumers. It's likely to push power prices higher and make life even harder for people who are already struggling to pay the power bill.” says Consumer NZ’s Chief Executive, Jon Duffy
Rewiring Aotearoa, agrees.
“The LNG dry year solution is attempting to address a local risk by swapping it with an international risk and, as we can see right now, it is clearly very risky to be relying on imported fuels to keep the lights on economically”, says Rewiring Aotearoa CEO Mike Casey.
“The Government needs to be thinking strategically about how we address dry year risk and reduce energy bills for customers. There are clearly cheaper, cleaner and more reliable alternatives to address this challenge.”
Casey says gas-dependent homes with solar, batteries and space and water heat pumps could save $2,000 per year on their bills, including loan repayments.
“More rooftop solar won’t solve the problem on its own, but it needs to be part of the solution, alongside other measures like faster roll out of large-scale renewables, help for gas users to switch to electricity and better use of our hydro assets.”
The full Alliance proposal is available at www.smarterenergy.nz
The Smart Energy Alliance NZ is welcoming interest from aligned organisations that want to help shape a smarter, more secure energy future for Aotearoa.
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