There is nothing here that is going to stop us going through what we are going through right now. For months and months every winter for the last two winters we've seen the closing down of mills, extremely high power bills, and a shortage of gas - and all of that's going to continue.
The disappointing thing is that we have waited two whole winters for this package of ideas, and yet the best idea seems, to me, to be a kooky idea, which is that the Government may be backing the construction of an LNG import terminal.
That was an idea that sounded great last winter, but in the months since, when we've actually had a look at the thing and had some reports done and it has been debunked for being quite expensive for not a lot of gain.
To set up one of these terminals, most likely at the port of Taranaki, it would cost somewhere between $200 million and $1 billion dollars, which is not money that we have.
The gas that we would then import from offshore to basically make up for the shortage of gas that we have in the country at the moment would be very expensive.
Have a look at what you're paying for your gas right now - and add 25 percent to that.
The second best idea in this seems to be the Government throwing taxpayer money at the partially owned gentailers in order that they can raise capital to build more generation. Which is not capital that they appear to be asking for.
They do not seem to have a shortage of money, as evidenced by the fact that they keep paying out massive dividends.
The upshot for all of this - as in how much we're going to save - Simon Watts reckons he might be able to drop power prices by two percent a year. Two percent.
Now, I'll tell you the problem with this plan is that it appears - and from what I hear - they haven't spent much time understanding the problem and thus understanding what it would take to fix it properly.
So what they've done is, in haste, cobbled together a series of what sounds like maybe decent announcements if you're half listening. But they're really things that will not do that much.
Unfortunately for them, we have an energy crisis, and it is massive. It is probably the biggest thing that is facing business in this country right now. A crisis of this size demands a proper fix.
This is becoming a theme for this Government - having lots of really big things to deal with, and they're not really dealing with them properly.
This is not really a fix.
So unfortunately, and I'm so sorry to say this, strap yourself in because it looks like for next winter and the winters to come, the deindustrialization of New Zealand will continue.
Heather du Plessis-Allan is a journalist and commentator who hosts Newstalk ZB's Drive show HERE - where this article was sourced.
14 comments:
The government appears clueless. There is no incentive for gentailers to change their behaviour as they are making huge profits. With a power shortage, prices are high. Renewables are a joke as they are unreliable and the power is more expensive. The govt. needs to open up the market to competition. And the is no discussion of nuclear energy as an option.
Why is it that as soon as I see Simon Watts is involved, I know it will be either a non event or a disaster
National really is Labour-lite. Had a listen to Shane Jones on the Platform talking with Michael Laws last night on this and that was a bucket load of common sense. His take on why the electricity market is broken was spot on. It really is time that National actually listened to and acted upon what the NZF part of the coalition 'team' are saying.
Yes - time is really running out. The Left would regress NZ to the stone age.
Interestingly, there is no mention of nationals ongoing support for the great kiwi electricity fraud on kiwiblog this morning,
Has Mark Zuckerberg bought kiwiblog?
Shouldn't Shane Jones be busy drill baby drilling?
I am a Genesis Energy shareholder, a Chemical Engineer and a National Party member (Epsom). I have lobbed Genesis (no positive response), Simon Watts, Shane Jones and other National MP's suggesting the 4 major power companies jointly build a modern coal fired unit at Huntly using Huntly coal as the best and cheapest answer to NZ's electricity problems. National are scared to do this as they feel NZ will get back lash from countries committed to Nett Zero. Shane Jones and NZ First either are all talk no action, or they do not have any say. We need Trump type leaders in this country who do things.
I have also tried to have an anti "Man made Global Warming" letter published in the NZ Herald 4 times, no avail!! The Western World population have been "brain washed" by the Media on this topic. Readers should look at Electroverse.info for great up to date climate information.
Also, National promised before the last election to reverse the Labour commitment to give Fonterra $160 million and NZ Steel $150 million to change from coal to electric fired furnaces, they did not do this. We the Tax Payers wasted $310 million on nothing.
If supply is opened up, then the gentailers will compete for market share. Government doesn't need to own commercial business because it can just as badly stuff things up by regulation. Supply cannot be easily opened up as it is too hard and too expensive to get consent, even if certain affected parties, protestors or sectors (usually they're combined) are paid off for their antics or because the government granted them special rights over areas. Then it still has to get past a judicial sector and multiple appeals to all the other courts. Energy generation needs to be concentrated, in a small area, minimal cost for maximum reliable energy, not wind nor solar.
The now government will lose the election if energy issues are at the forefront of people’s minds. They will learn and so will any new government that energy security is paramount to social cohesion, that means more coal and gas.
Stop fudging, get on with it and build thermal capacity
I have been complaining to NZME as a shareholder about the lack of balance as required by the Press Council.
Election losing policy and lack of action. Half life of a good idea is 5 days.. Having Watts as both Climate change Minister and Energy Minister is so wrong.. in fact even having a Climate Change Minister is wrong!
Shane Jones is Mister "yap, yap".. all talkee, no doee.
Sometimes one thinks National wants to lose in 2026......its action is so ambivalent or ineffectual.
The supply situation gets worse every year because we keep finding ways to use more electricity, but our supply stays fairly static or only increases a little. Hydro dams are our long term answer with more gas supply as back up
Aren't modern coal fired plants virtually pollution free? We used to have a No 8 mentality in this once great little country. We have morphed into No 2 mentality. Ring fence Wellington off, one way passport out, declare it the independemt state of Aotearoa, then let the sane bastards in the rest of New Zealand get on with the growth of our beloved country. Ameni.
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