The 'Electric Election': energy policies, side by side
Energy has been a huge issue for the New Zealand economy in recent years, and a growing concern for everyday New Zealanders, but there wasn’t a huge focus on it in the Budget. While we see this as a missed opportunity, Minister Simon Watts, Minister Shane Jones and their Cabinet colleagues have an opportunity to make up for it before next year’s election and, next week, Rewiring Aotearoa will show them how with the launch of our policy manifesto.
It outlines an achievable, evidence-based, low-cost plan that will lead to a cheaper, cleaner and more resilient & secure energy system and a more productive economy.
The energy-related Budget announcement that got the most attention was $200 million earmarked for Government investment into new gas fields. It’s not a huge amount, the gas may never be found and we hope it won’t be needed but, as Minister Jones suggests, it’s important to be pragmatic about the need for gas in the short term to ensure our electricity system functions and industrial users can continue operating.
But it’s also important to point out that the sooner we get households and small businesses off gas, the sooner New Zealanders will have lower bills because gas in all its forms - fossil gas, hydrogen, LPG, liquid natural gas (LNG), and so-called ‘renewable’ gas - is now more expensive than electrification.
A recent survey showed 85% of respondents were just as worried or more worried about the rising price of electricity this year compared to last and 70% thought the government was not doing enough to help address these costs. The sad thing is that it has never been cheaper to generate and store electricity with solar and batteries, yet prices for New Zealanders continue to rise.
Solar and batteries can also play an important role in terms of energy security by keeping water in our hydro lakes.
There is so much momentum on the ground around electrification and increasing numbers of farmers, homeowners and businesses can see that it stacks up economically and environmentally. Our Machine Count report showed 84% of the fossil fuel machines in the country are both technically and economically feasible to electrify and already have easily available alternatives. But there are some big barriers in the way.
We want the current Government to recognise the opportunity it has to save New Zealanders money on their energy bills, reduce our emissions, keep the lights on and grow the economy in the next 18 months, and we want the opposition parties to greatly increase their electrification ambition to get the votes they need. We believe our policy manifesto will fill the energy gap in this budget and provide a vision that all our politicians should get behind.
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'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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