Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Info economy could be starved of electricity


Information economy could be starved of electricity

A study by The United States Energy Agency (EPRI) which found that the American electricity network is unable to handle the energy needs of an advanced digital economy has dire implications New Zealand, according to Powerco Chief Executive Steven Boulton.

EPRI analysis in a 2003 study found that the function of line networks was growing more complex because of the exacting requirements of the digital economy

It concluded that "without accelerated investment, the reliability of the power system will almost certainly degrade such that the losses due to transmission and distribution interruptions can outweigh the anticipated economic benefits [of a digital economy]"

A few months later a three-day power blackout across the eastern United States is estimated to have cost $300 billion a day in lost productivity.

Mr Boulton said New Zealand's own growth into a digital economy was placed at risk by Government plans to regulate electricity networks with a price setting regime.

He said price setting would starve the nation of quality power supply essential for an IT-based economy.

"The dependence on information technology across all sectors of the economy requires an electricity network capable of delivering more electricity at very high levels of quality and reliability.

"To follow that demand, the sector needs a massive technology upgrade - in lines, transformers and switches, and to high tech monitoring and management technology.

"Yet at exactly the time when this sustained and heavy investment is required, the Commerce Commission is establishing a price setting regime that could restrict prices and punish investment," he said.

Mr Boulton said it was critical that electricity lines companies were allowed to earn enough money to attract and enable the required investment in their networks.

The electricity lines sector has reduced its prices by 12.6 per cent over the last six years and reliability of supply has improved to lead international standards.

Powerco is a publicly listed company, listing on the NZSE in December 2000 and on the NZSE40 index on December 2, 2002. Powerco is New Zealand's second largest electricity lines company, with 290,000 electricity consumer connections in the North Island.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra (And Dairy NZ)'s Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech