The 'Electric Election': energy policies, side by side
BusinessDesk investigates the energy sector, the role of Huntly, the lack of domestic gas and its impact on business and electricity prices. What it doesn't talk about, however, is the role that solar could play in the system to keep our lakes high and our prices low.
When you combine cheap electricity and the efficiency of electric machines you can make the whole economy more productive. Households can save thousands, businesses can save millions, and countries can save billions.
Our Investing in Tomorrow report showed what's on the table for New Zealand and it adds up to combined savings of $29 million per day.
So how do we keep a lid on prices?
South Australia is currently showing what cheap electricity can lead to. Low wholesale prices in the middle of the day, in large part due to so much solar in the system, are now attracting large industrial users who see an opportunity to get their hands on cheap, reliable and renewable energy.
As a recent story in Renew Economy said, "there are more than three dozen companies that have made inquiries about setting up major business in the state and connecting into the state grid, with the specific requirement to source zero emissions and low cost wind and solar. ElectraNet says the combined load of these 37 big industries amounts to astonishing 15 gigawatts, more than 10 times the current average load in the state, and five times the maximum demand. Far from killing industry, the state’s transition to renewables is sparking a rebirth."
South Australia now has one of the world's most renewable grids. New Zealand is right up there, too (although our overall energy system is not particularly renewable because around two thirds of our total energy still comes from fossil fuels), but high wholesale prices and volatility are hampering business, not attracting it.
One big difference is that New Zealand has a world-leading hydro scheme that we should be using as a battery. Currently, we burn expensive, imported fossil fuels when our lakes are low when we could instead keep those lakes topped up with more solar and batteries, something we explored in a 'Watt Now?' explainer.
More solar in the system is highly unlikely to cause any network problems until there is much higher adoption rate here and those issues have already been addressed in Australia.
It's also increasingly clear that these technologies can help defer or avoid expensive upgrades to the poles and wires, which make up around half the cost of electricity to households and are likley to make up the biggest chunk of bill increases in the coming years.
New Zealand is a decade behind Australia on solar installs. It is clear we should go as fast as we can to catch up. That will put downward pressure on prices and allow us to make better use of our existing infrastructure. And that's a good thing for industry, for consumers, and for New Zealand Inc.
'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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