August 2021
Blackouts highlight energy challenges
New Zealand’s energy shortage became very real for people shivering in their homes during blackouts this month, according to Energy Resources Aotearoa.
“Until now it has been the industrial sector feeling the pressure of energy shortages, but the supply gap has now become a gulf,” says chief executive John Carnegie.
“Renewable energy is great but it can’t cope with current demand on a cold night.
“It shows the crucial importance of natural gas in providing a back-up, literally keeping the lights on and saving people’s lives.
“We are deeply worried over what will happen in a few years when electricity demand is even higher and natural gas supply even more precarious.
"This is a sobering reminder of the challenges in achieving the balanced energy system we all want – reliable, affordable and sustainable."
Refining decision the end of an era
The decision by Refining NZ to close the Marsden Point refinery is understandable but disappointing, says Energy Resources Aotearoa.
“This continues a worrying trend of de-industrialisation and job losses in the regions,” says chief executive John Carnegie.
“While there are many domestic and global factors at play, the high cost of energy has been an element in all of these decisions.
“To help with this challenge we’d like to see an Energy Accord between the Government and industry. This could encourage the investment needed to close our emerging energy gap.”
Renewable generator urges role for gas
Renewable electricity generator Meridian has urged the Government to retain a role for natural gas in back-up electricity generation.
Chief executive Neal Barclay told investors the intermittency of wind increased the need for "fast-start" gas-powered electricity for times when demand is higher than supply.
"But the introduction of the 100 per cent renewable electricity target by 2030 has rapidly upended the wider industry's long-standing plans to use gas, in particular fast-start gas peakers, to provide renewable firming capacity, and to efficiently transition away from coal," he said.
"Some of the renewable firming initiatives being mooted presently are still well over a decade away. So, we do need government policy that is more sympathetic to and accepting of some gas generation."
The Government needed to hold back from policies that "get in the way" of gas, he said.
Meet the Chief Executive: Gretta Stephens
Another large audience attended our latest Meet the Chief Executive event featuring New Zealand Steel's Gretta Stephens on Thursday 5th August.
Key topics were the challenges for New Zealand Steel in dealing with high energy prices, their plans for decarbonisation, and the importance of a domestic steel industry to New Zealand.
Stay tuned for details of the next event in this series.
All Blacks deal welcomed
The sponsorship of the All Blacks by global company INEOS is great news for New Zealand and should be celebrated, according to Energy Resources Aotearoa.
“INEOS products are used in wind turbines, solar panels, clothing and medical products,” says chief executive John Carnegie.
“As a company they support a net zero emissions goal for 2050 and are putting this into action by supporting hydrogen and carbon capture and storage.
“New Zealand Rugby should completely ignore hypocritical whingeing from Greenpeace, who will never be happy until we’re all living in caves and eating grass.”
Beach Energy reducing emissions
Beach Energy is already halfway to it's goal of reducing operational emissions 25% by 2025, according to the company's latest sustainability report.
Emissions have reduced 12 per cent since 2018, an important step towards Beach's goal of reaching net zero Scope 1 and 2 operated emissions by 2050.
Beach is also a participant in the proposed Moomba Carbon Capture and Storage (CCS) project in outback South Australia.
