All facets of New Zealand life are, in some way or another, being adversely affected by our energy crisis.
Whether it be our dwindling natural gas reserves, mounting electricity costs, generation and supply problems or even the method of generation, demands for urgent reform only increase.
Obviously, new, long term generation capacity is a priority but it is the current soaring energy prices that are damaging our productivity and impacting all of us.
Who or what do we blame?
A dry winter in 2024 caused record-low hydro lake levels. Low wind generation, inadequate solar generation and that dwindling natural gas supply are also significant causative factors.
One of the Government’s main concerns has been around a lack of back-up generation that can be relied upon during dry years.
But why are we focussing on back up generation? Is that not short term thinking? Surely it is increased generation capacity we need. Capacity generated by methods that ensure the integrity of supply!
As we look to mitigate this lack of generation capacity, increasingly “renewable” becomes the cliché.
What is not being stated is backup generation is only needed because energy from renewable sources is unreliable!
Governments and government ministers rabbit on about energy and energy generation but we remain mired in the same problem!
How on earth is Chris Luxon ever going to attract foreign investment through “Invest New Zealand” as announced in his January state of the nation address.
Surety of power supply is needed for that to bear fruit Chris!
But when it comes to inanity from a government minister on power supply my mind is immediately drawn to Megan Woods, as Minister of Energy and Resources in 2022 stating – “Thanks to our strong economic management and our readiness to do things differently we are well positioned to slash our energy emissions and create a sustainable energy system for generations to come.”
Woods was spruiking the Labour Government’s target for 50% of total energy consumption to come from renewable sources by 2035 and net-zero by 2050.
Woods has a doctorate in; Integrating the nation: Gendering Maori urbanisation and integration, 1942-1969. That thesis examined the mid-twentieth century attempts to create integrated and therefore ‘ideal’ Maori citizens.
I’m not sure how that qualified one to be a Minister of Energy, but then again you could easily question the qualifications of Arderns entire Labour cabinet!
But it is this nonsensical net-zero 2050 goal that has delivered us to this “tipping point” and the danger of being able to keep the lights on by only investing in renewable energy!
A great case study on the fragility and vulnerability of the dependence on renewable energy is the Ivanpah Solar Project, a solar thermal plant based in the Mojave Desert in California.
Ivanpah Solar is made up of three 140 metre towers supporting around 174,000 computer-controlled mirrors plus 13 square kilometres of mirrors covering the desert floor below the towers.
Being commissioned in 2014, Ivanpah Solar is a relatively new generation site. Ivanpah was expected to reduce CO2 emissions by more than 400,000 tons annually!
The Ivanpah Solar Power Facility cost an eye-watering US$2.2 billion to build!
For obvious reasons California is widely considered the most appropriate state to construct solar energy installations. The Mojave desert the jewel in their generation crown!
California’s aggressive shift from nuclear power to mandated wind and solar energy resulted in legislation that demanded progressively increased renewable energy targets. 50% renewable energy by 2030 and 100% clean electricity by 2045 has seen the state subjected to significant challenges in reliability of supply and, surprise, surprise, increased cost!
California’s power network has gained a reputation of being among the most expensive and least reliable in the USA!
Those very determined greenhouse gas reduction goals has subjected California to experience frequent power outages. The reasons given by supply entities; The intermittent nature of renewable energy’s sources, sun and wind! Oh, and the retirement of the reliable but “dirty” nuclear plants.
But what wasn’t foreseen or should that be, mentioned, when Ivanpah was first proposed, was the environmental impacts on wild life and residents living in the surrounding area. Residents claim their property values have been hit hard, with several now struggling to sell their homes.
Ivanpah has create a myriad of environmental problems. Bulldozing areas of designated critical habitat for endangered native species and even bighorn sheep have been negatively impacted. But most alarmingly, Ivanpah created a death trap for thousands birds that made their way through the area. Birds were instantly vaporized by the concentrated solar energy coming off the mirrors.
“We’re trying to solve one environmental problem by creating so many others” said residents.
Now this is interesting, Ivanpah, despite federal and state support, never exceeded 75% of its planned electricity output!
A solar power farm in the Mojave Desert struggles to deliver its predicted output? Amazing!
To supplement the low output Ivanpah was forced to fall back on natural gas turbines!
Is that a paradox or what? A solar power generator depends on natural gas to operate!
Apparently, rather than employing the conventional method of using batteries to store energy for the times when the sun isn’t shining, Ivanpah was designed to heat water to store energy. All other similar generators heat salts to store energy.
Ivanpah and its innovative technology was going to make America a world leader in solar energy generation!
Seems innovation may have been its downfall!
Pacific Gas and Electric Company, suppliers of electricity and natural gas to customers in northern and central California recently announced they would stop purchasing power from Ivanpah.
That decision was the death knell for Ivanpah. Causing the owners of Ivanpah to make the difficult decision to shut down the project!
Wow, a US$2.2 billion, renewable energy failure!
Here in New Zealand, we have gone from a country that produced electricity with internationally competitive pricing, electricity that was available, affordable and was an attractive incentive to new businesses.
Now we face unaffordable pricing that is causing business closures!
Yet politicians are still “following the herd” with their pronouncements of 100% renewable electricity generation.
In mid 2023, BlackRock announced it was establishing a $2 billion fund to invest in New Zealand renewable energy projects, an elated Hipkins described it as “a watershed moment in our transition to 100% renewable electricity generation”
In June 2024 the new government reviewed the NZ Green Investment Finance and declined to participate further.
Hipkins again, in September this year, trumpeting renewables stated – “We have got a problem… that we need to address. But renewable energy… could solve those problems much quicker then hoping one day that we find more gas”
The Greens, as you would expect, want to legislate us into “Renewable Rapture.” The Greens plan to fast track us there with a ridiculously ambitious plan!
But as with most Greens legislation there is the ubiquitous fish hook – Hapū and iwi should have tino rangatiratanga over energy and resources, including governance, ownership and direct benefit from energy infrastructure.
As new electricity-dependent technology arrives in New Zealand, demand for electricity will grow rapidly and the impetus to move away from fossil fuels will grow exponentially.
A classic example is Data centres. New Zealand is quickly gaining favour as a promising alternative to building overseas and our government say we are open for business! Building energy-hungry data centres is a boom industry in New Zealand with international companies keen to be seen reducing their climate impact by using this county’s renewable electricity.
Have we asked – “Do we have the renewable generation capacity for these rapacious energy users?”
We don’t so, yes, New Zealand is in dire need of better, long term electricity generation because our current electricity market and generation is all but dysfunctional and soon to be inadequate, thus our productivity, our international competitiveness and our ability to be viewed as a desirable country to live in diminishes.
But 100% renewable electricity generation. I think we should think about that!
Oh, and Chris, where does your nationwide chain of 10,000 EV charging stations fit in all this energy crisis? You seem to have gone from “power surge” to “trickle feed” on that “electrifying” election pledge!
Pee Kay writes he is from a generation where common sense, standards, integrity and honesty are fundamental attributes. This article was first published HERE
Who or what do we blame?
A dry winter in 2024 caused record-low hydro lake levels. Low wind generation, inadequate solar generation and that dwindling natural gas supply are also significant causative factors.
One of the Government’s main concerns has been around a lack of back-up generation that can be relied upon during dry years.
But why are we focussing on back up generation? Is that not short term thinking? Surely it is increased generation capacity we need. Capacity generated by methods that ensure the integrity of supply!
As we look to mitigate this lack of generation capacity, increasingly “renewable” becomes the cliché.
What is not being stated is backup generation is only needed because energy from renewable sources is unreliable!
Governments and government ministers rabbit on about energy and energy generation but we remain mired in the same problem!
How on earth is Chris Luxon ever going to attract foreign investment through “Invest New Zealand” as announced in his January state of the nation address.
Surety of power supply is needed for that to bear fruit Chris!
But when it comes to inanity from a government minister on power supply my mind is immediately drawn to Megan Woods, as Minister of Energy and Resources in 2022 stating – “Thanks to our strong economic management and our readiness to do things differently we are well positioned to slash our energy emissions and create a sustainable energy system for generations to come.”
Woods was spruiking the Labour Government’s target for 50% of total energy consumption to come from renewable sources by 2035 and net-zero by 2050.
Woods has a doctorate in; Integrating the nation: Gendering Maori urbanisation and integration, 1942-1969. That thesis examined the mid-twentieth century attempts to create integrated and therefore ‘ideal’ Maori citizens.
I’m not sure how that qualified one to be a Minister of Energy, but then again you could easily question the qualifications of Arderns entire Labour cabinet!
But it is this nonsensical net-zero 2050 goal that has delivered us to this “tipping point” and the danger of being able to keep the lights on by only investing in renewable energy!
A great case study on the fragility and vulnerability of the dependence on renewable energy is the Ivanpah Solar Project, a solar thermal plant based in the Mojave Desert in California.
Ivanpah Solar is made up of three 140 metre towers supporting around 174,000 computer-controlled mirrors plus 13 square kilometres of mirrors covering the desert floor below the towers.
Being commissioned in 2014, Ivanpah Solar is a relatively new generation site. Ivanpah was expected to reduce CO2 emissions by more than 400,000 tons annually!
The Ivanpah Solar Power Facility cost an eye-watering US$2.2 billion to build!
For obvious reasons California is widely considered the most appropriate state to construct solar energy installations. The Mojave desert the jewel in their generation crown!
California’s aggressive shift from nuclear power to mandated wind and solar energy resulted in legislation that demanded progressively increased renewable energy targets. 50% renewable energy by 2030 and 100% clean electricity by 2045 has seen the state subjected to significant challenges in reliability of supply and, surprise, surprise, increased cost!
California’s power network has gained a reputation of being among the most expensive and least reliable in the USA!
Those very determined greenhouse gas reduction goals has subjected California to experience frequent power outages. The reasons given by supply entities; The intermittent nature of renewable energy’s sources, sun and wind! Oh, and the retirement of the reliable but “dirty” nuclear plants.
But what wasn’t foreseen or should that be, mentioned, when Ivanpah was first proposed, was the environmental impacts on wild life and residents living in the surrounding area. Residents claim their property values have been hit hard, with several now struggling to sell their homes.
Ivanpah has create a myriad of environmental problems. Bulldozing areas of designated critical habitat for endangered native species and even bighorn sheep have been negatively impacted. But most alarmingly, Ivanpah created a death trap for thousands birds that made their way through the area. Birds were instantly vaporized by the concentrated solar energy coming off the mirrors.
“We’re trying to solve one environmental problem by creating so many others” said residents.
Now this is interesting, Ivanpah, despite federal and state support, never exceeded 75% of its planned electricity output!
A solar power farm in the Mojave Desert struggles to deliver its predicted output? Amazing!
To supplement the low output Ivanpah was forced to fall back on natural gas turbines!
Is that a paradox or what? A solar power generator depends on natural gas to operate!
Apparently, rather than employing the conventional method of using batteries to store energy for the times when the sun isn’t shining, Ivanpah was designed to heat water to store energy. All other similar generators heat salts to store energy.
Ivanpah and its innovative technology was going to make America a world leader in solar energy generation!
Seems innovation may have been its downfall!
Pacific Gas and Electric Company, suppliers of electricity and natural gas to customers in northern and central California recently announced they would stop purchasing power from Ivanpah.
That decision was the death knell for Ivanpah. Causing the owners of Ivanpah to make the difficult decision to shut down the project!
Wow, a US$2.2 billion, renewable energy failure!
Here in New Zealand, we have gone from a country that produced electricity with internationally competitive pricing, electricity that was available, affordable and was an attractive incentive to new businesses.
Now we face unaffordable pricing that is causing business closures!
Yet politicians are still “following the herd” with their pronouncements of 100% renewable electricity generation.
In mid 2023, BlackRock announced it was establishing a $2 billion fund to invest in New Zealand renewable energy projects, an elated Hipkins described it as “a watershed moment in our transition to 100% renewable electricity generation”
In June 2024 the new government reviewed the NZ Green Investment Finance and declined to participate further.
Hipkins again, in September this year, trumpeting renewables stated – “We have got a problem… that we need to address. But renewable energy… could solve those problems much quicker then hoping one day that we find more gas”
The Greens, as you would expect, want to legislate us into “Renewable Rapture.” The Greens plan to fast track us there with a ridiculously ambitious plan!
But as with most Greens legislation there is the ubiquitous fish hook – Hapū and iwi should have tino rangatiratanga over energy and resources, including governance, ownership and direct benefit from energy infrastructure.
As new electricity-dependent technology arrives in New Zealand, demand for electricity will grow rapidly and the impetus to move away from fossil fuels will grow exponentially.
A classic example is Data centres. New Zealand is quickly gaining favour as a promising alternative to building overseas and our government say we are open for business! Building energy-hungry data centres is a boom industry in New Zealand with international companies keen to be seen reducing their climate impact by using this county’s renewable electricity.
Have we asked – “Do we have the renewable generation capacity for these rapacious energy users?”
We don’t so, yes, New Zealand is in dire need of better, long term electricity generation because our current electricity market and generation is all but dysfunctional and soon to be inadequate, thus our productivity, our international competitiveness and our ability to be viewed as a desirable country to live in diminishes.
But 100% renewable electricity generation. I think we should think about that!
Oh, and Chris, where does your nationwide chain of 10,000 EV charging stations fit in all this energy crisis? You seem to have gone from “power surge” to “trickle feed” on that “electrifying” election pledge!
Pee Kay writes he is from a generation where common sense, standards, integrity and honesty are fundamental attributes. This article was first published HERE
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