
RNZ investigative journalist Kirsty Johnston digs into the liquified natural gas terminal decision and finds that "for a government facing blackouts and business closures in an election year, importing gas is an attractive choice. For others [including Rewiring Aotearoa, whose CEO Mike Casey was quoted in the piece] it's the worst possible option."
As the story said:
When the government unveiled its long-awaited energy package earlier this year, the centrepiece was a promise to fast-track the import of overseas natural gas. Ministers said it would keep the lights on and protect industry as local gas reserves run dry.
But the response from almost every corner - other than the gas industry itself - was a collective groan. Liquified Natural Gas, or LNG, is an answer of sorts to the country's energy security crisis, but not one most were hoping for.
Not only is imported gas expensive, it is also bad for the climate, and leaves us dependent on volatile global markets.
"LNG is not a good option for New Zealand. It's a duress position, a band-aid," says energy commentator Larry Blair.
Even the government's own independent review warned LNG should only ever be a last resort. Frontier Economics, which led the official Electricity Market Review, warned that importing LNG would expose New Zealand to international price shocks and make local exporters less competitive.
At best, it will buy the country a bit of time while it seeks a replacement for its dwindling domestic gas supply, Blair says. "It's like jamming a finger in the dike to hold back the flood."
Rewiring Aotearoa's CEO Mike Casey said:
"The energy system and the energy market is failing New Zealanders," says Rewiring NZ chief executive Mike Casey. "The goal has to be finding the lowest cost alternative. And therefore the answer is not LNG - it's a way more expensive outcome."
... Casey believes using what energy we have in a more deliberate way is vital.
"Look at hydro. It's basically a giant battery, and we need to use it more strategically. And that's because the market incentives for those who operate large storage lakes are aligned for profit, not the strategic use of our hydro assets," he says. "The technology we need already exists. What's missing is a plan to join it up."
If you've got solar, the best option is to use as much of it as possible to avoid high grid prices, but being paid to export energy is a nice cherry on top. It means many New Zealanders end up getting paid by their power company and shorten the payback period of their systems. Regulatory changes that meant customers would be paid more for exporting at peak times were meant to make batteries more appealing to customers and reduce the need for more investment in expensive poles and wires, but, as Marc Daalder writes in Newsroom, some retailers are not passing on the full value of those exports.
Read moreDownloadFinancial commentator Frances Cook uses her own story to show that that an investment in solar and an EV significantly outperforms the stock market and fellow number cruncher Nadine Higgins says that if you do it right, EVs are cheaper to run and own; EV sales have climbed to their highest level since 2022 and are closing in on 2023's numbers and Go Rentals has just invested $2.3 million in some new Tesla Model Y Premiums; the gap between energy costs of diesel vans and utes and electric vans and utes is absolutely massive; solar is also going off right now, with one installer in Otago 448% above their sales target in March; Lightforce has gone back to the Barretts with a new TV ad; Wellington mayor Andrew Little explains its electrification strategy and Hutt City Council shares data showing how its fleet has gone from dirty Toyotas to cleaner EVs; Shenzen in China has electrified its public transport and taxis and that's come with big benefits - and some challenges; and a very simple illustration of the LNG terminal.
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