One problem is that many New Zealanders have gas powered heating and cooking. So what would be the cost of doing away with gas?
We now have an answer with this analysis by Castalia for the Gas Industry Company.
They find:
Consumers face higher direct cash costs from switching off the gas network than the BAU. Holding historical energy prices constant, switching off the gas network increases consumer costs by $1 billion over the 25-year forecast period, a 45 percent rise compared to the BAU scenario, as shown in Figure 0.2.
So an extra $1 billion cost to consumers.
At a regional level, switching off the gas network is projected to reduce emissions by 1.2, 0.2, and 2.1 million tonnes CO₂e in Hamilton, Gisborne, and Wellington, respectively. Under the historical energy price scenario, this produces an abatement cost per tonne of CO₂e of $879 overall.
Note the current ETS price is $57, so turning off gas would cost 15 times as much as other ways to reduce greenhouse gas emissions.
David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders
9 comments:
NZ is running out of gas because NZ is running out of gas, prospectors aren’t out there looking for it because they don’t think there is enough out there for it to be economic to go looking for. Politics doesn’t dictate how much gas is there in the ground for the taking. You may not like facts or science David, but science and facts aren’t affected one jot by your opinion pieces.
Funny how D Farrar never mentions NZ electricity companies make 100% more profit than international power companies benchmarks.
The big 4 made an incredible $ 2.7b last year.
Consumer nz estimates 40,000 households have gone without power at some point in the past year because they couldn’t afford to pay.
D Farrar and Nicola Willis are two peas in a kiwi battler swindling pod.
Yes, backward policies for sure. There was some lefty on another one of your posts complaining about the cost of power....I wonder if he's going to show up here and accuse you of being racist and not posting about some other mundane lefty topic?
What the left don't understand is that for every action there is a consequence. The consequences of arderns policies are still being felt today and for probably another generation.
If the proletariat want to ban exploration and fracking, then why would anyone be looking for resources? So, without having been allowed to frack the large shale features in NZ, how do you know there are no hydrocarbon resources left? Maybe let explorers risk their money to find out for sure. And if successive governments could see this impending lack of resources (which humankind seem to remarkably be able to keep extracting and improve technology in other countries), then why did none of them prepare for a viable alternative?
Pretending gas exploration will lower electricity prices is another method for perpetuating the great kiwi corporate electricity price theft.
2 MONTHS AGO LUXON POSTED. Power bills are too high.
yet he stands by as Watts and Willis implement a mere 2 out of 12 recommendations from their latest time and money wasting electricity sector report.
The 2022 electricity sector report had all the recommendations a conscientious and honest minister of finance needed to bring down the excessive, double international benchmark, nz electricity profit margins.
The whining leftie is back...anon @6.47. Let's get this country moving again and leave the left to whine about prettmuch everything.
Tell those 40000 to get up in the morning and get a job. CONTRIBUTE AND ADD VALUE INSTEAD OF BLUDGING OFF THE PUBLIC COFFERS , then u guys could afford the power bill. It's really not difficult. You lot are your own worst enemies.
Another uneducated poster above here. It isn’t “u”, it is “you”. Large numbers need to be formatted for readability. It should be 40,000. There is no such word as “prettmuch”. All caps makes you sound like you don’t know how to operate in society. Are blog comments part of society?
To anon @ 9.18.
Oh dear, Wow, so USING CAPS annoys u, that's fantastic. If you have a problem with high electricity prices, just switch off your internet, it will do us all a favor :)
Unfortunately for you, our energy prices are not really that expensive compared to the most expensive countries. I'm guessing that you are annoyed because the rate of increase has been high lately. Well tough. Get over yourself.
The only reason to whinge is if you cant make ends meet. And whinging isnt going to make the power bill vanish. The problem for your misery is staring you back in the mirror. Yet most lefties still cant make the changes to become successful. Darn, it must be horrible for you lot.
There are many reasons that prices are high if you did some research. But guess what, David Farrar is NOT the cause. I know you don't want the truth, lefties don't do the truth that well.
But to blame David Farrar for high energy prices and your misery is probably the joke of the day....other than youself.
Actually dont switch off your internet, as a shareholder in all the utilities, I have some dividends to collect from you. That should really make your night :)
All the odds indicate that there IS gas off our large coastline. It is the cleanest fossil fuel so it is stupid to ignore it. (Probably why Maori are upset at the MACA Bill; think they might miss out on some money)
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