August 2022 Industry update: what we're seeingIt's important that we learn from the world's lessons. Vladimir Putin’s use of gas as a geopolitical weapon continues to highlight the importance of energy security, and why countries should strive to have a robust and flexible energy mix. Now, street lights are dimmed and showers run cold. Nord Stream 1, the primary gas pipeline from Russia to Germany, has been cut to just 20% of capacity. Germans might not mind the cold showers as they bask in summer heat, but winter is coming. External factors are often used as scapegoats for poor domestic policy. In the UK, years of price controls on low-income electricity and gas users, coupled with a recent "windfall" tax on oil and natural gas producers, have led to unintended consequences. It is expected that Britons' energy bills will increase by 60% and that a third of households will fall into energy poverty by October. Worse yet, some commentators have raised the spectre of widespread refusal to pay energy bills, and the potential for civil unrest. Closer to home, our trans-Tasman neighbour has problems of its own. Just months after energy regulator AEMO suspended the electricity market, Australians are grappling with energy bills three times higher than they were a year ago. The previous Liberal-led Government took different views on the future of coal generation plants depending on the leader at the helm. This political uncertainty led to firms putting off maintenance, upgrades or new plants, and ultimately meant that old coal generators were unreliable when needed. New Labor Prime Minister Anthony Albanese has been doing his best to shore-up investor confidence by ruling out a moratorium on fossil fuel projects and stating that a ban would have a "devastating impact" on the Australian economy. Across the world, constant meddling in energy markets is coming back to bite consumers. We are not immune to this risk. But while the window is closing, we currently have the advantage of being able to observe how wrong-handed energy policies can create unfavourable investment conditions for producers, distributors, sellers and users, create scarcity, and - in the absence of economic alternatives at scale - increased prices for consumers. Let's not squander our natural advantage. Panel Event: Is our energy security in peril?What lessons can New Zealand learn from the experiences of other countries? And how do we build a more resilient energy sector to weather geopolitical shocks? Join us for a robust panel discussion, kindly hosted by Russell McVeagh in Wellington. Our panellists include:
John Kidd (Enerlytica) will facilitate the discussion, followed by Q&A from the floor and a final wrap-up. Tickets are essential. Register now to ensure you do not miss out. Crown's legal argumentsWe have been following the ongoing court case brought by Students for Climate Solutions against the Crown. Students for Climate Solutions argue that the Minister for Energy and Resources, Hon Dr Megan Woods, had an obligation under the Climate Change Response Act to consider the effects of new permits on climate change. It has been refreshing to note how the Crown's legal representative has used many lines of argument that regular readers of Energise Online will be familiar with. These include:
We are glad to see the Crown's legal representative bringing some perspective to the court, but only wish that Government ministers would adopt these arguments themselves. Both Energy News and Stuff covered this story in detail. Climate change adaption planThe Government has released the first National Adaption Plan which outlines more than 120 actions to protect "lives, livelihoods, homes, businesses and infrastructure" from the effects of climate change over the next six years. One of the most important of the listed actions is that the Government has committed to passing legislation to support a "managed retreat" of some coastal communities that are or will be adversely affected by climate change. This could include villages and towns that are susceptible to flood, erosion, or rising sea levels. A notable omission from the report is who will pay for the costs of climate change mitigation and the managed retreat of some communities. The Government has signalled that this will be addressed in the upcoming Climate Adaptation Bill. 1News has a good summary of the National Adaption Plan here. To read through the Plan itself, visit the Ministry for the Environment website. Energy Skills Industry Talent CornerBrooke Gamlin, Process Operator at Todd Energy Brooke entered the energy sector following a career as Deck Crew working on Super Yachts overseas. Fast forward nearly seven years, and Brooke has just returned to work with Todd Energy after having maternity leave with her second daughter. “I feel extremely grateful to have had the full support and encouragement of my company, who has been more than willing to work with me to ensure both of my returns to work have suited my family logistical requirements, while at the same time creating new opportunities for me. "I love my job and the constant learning opportunities and development that come with it. I have had the chance to work in a
number of different team environments, with a variety of different people, from contractors to fellow employees. The people are fantastic- I feel part of a great network of colleagues who provide opportunities to work hard and have fun along the way.” Member profile: BRGThey help a range of clients – from New Zealand businesses, multinationals, regulated industries and government agencies – navigate the messy intersection of politics and policy. |