Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


EA Chair casts further doubt on renewable energy target

EA Chair casts further doubt on renewable energy target

First published in Energy and Environment on June 27, 2019.

Electricity Authority Chairman Brent Layton says moving to 100% renewable generation will be difficult to achieve while maintaining current levels of reliability and affordability.

Writing in the EA’s statement of performance expectations, Layton said electrification of transport and some process heating is likely to play a significant role in decarbonising the economy. “With over 80% renewable energy sources, NZ is well poised for transitioning to a low emissions economy. However, given current technology for electricity generation and system management, a move to 100% renewable generation while maintaining current levels of reliability and affordability appears challenging.”

Layton said the key will be ensuring NZ benefits from its renewable advantage over time. “The Authority’s role will be increasingly important as NZ’s electricity sector navigates its way through the changes in technology and the large increases in output likely to be required. Enhancing our hedge market will also offer a stronger platform for dealing with the potential volatility associated with higher levels of renewable generation.”

Although the Authority’s statutory objective, powers and functions have remained the same since 2010, the environment in which it operates is changing significantly and at pace.

“It is not alone — other jurisdictions are facing opportunities and challenges as innovation and new technologies emerge and require adaptation of market design and regulatory approaches. However, NZ’s situation of already having a high level of renewable generation, isolation from other countries, high vulnerability to shortages of water to run hydro-generators in some years and long-stringy shape present different challenges and opportunities than other countries.”

Layton said it was a sector in which new entrants vigorously challenging incumbents, changing business models and technological innovation and disruption of established business arrangements mean the regulatory compliance function must be pursued with diligence.

In its performance expectations the EA said it will continue work on reducing barriers to the entry, expansion and exit of parties in electricity markets, especially for new and potential entrants.

“More flexible arrangements will improve the market’s response to changes such as an increase in the number of registered industry participants from the current 130 to potentially thousands. Given the adoption of technologies and innovation in business practices, this is a plausible scenario.”

On pricing the EA said “We believe the prices for distribution and transmission services should be service-based and cost-reflective. This will give better information about the true cost of their decisions and encourage them to invest in technology in ways that have long-term benefits. We can improve price signals by publicising price data and information and considering the introduction of more advanced spot market pricing arrangements. We are actively exploring enhancements to the hedge market and the evolution of current market making.”

First published in Energy and Environment on June 27, 2019.

© Scoop Media

Top Scoops Headlines


Eric Zuesse: U.S. Empire: Biden And Kerry Gave Orders To Ukraine’s President

Eric Zuesse, originally posted at Strategic Culture On May 19th, an implicit international political warning was issued, but it wasn’t issued between countries; it was issued between allied versus opposed factions within each of two countries: U.S. and Ukraine. ... More>>

Binoy Kampmark: Budget Cockups In The Time Of Coronavirus: Reporting Errors And Australia’s JobKeeper Scheme

Hell has, in its raging fires, ringside seats for those who like their spreadsheets. The seating, already peopled by those from human resources, white collar criminals and accountants, becomes toastier for those who make errors with those spreadsheets. ... More>>

The Dig - COVID-19: Just Recovery

The COVID-19 crisis is compelling us to kick-start investment in a regenerative and zero-carbon future. We were bold enough to act quickly to stop the virus - can we now chart a course for a just recovery? More>>

The Conversation: Are New Zealand's New COVID-19 Laws And Powers Really A Step Towards A Police State?

Reaction to the New Zealand government’s handling of the COVID-19 pandemic and resultant lockdown has ranged from high praise to criticism that its actions were illegal and its management chaotic. More>>

Keith Rankin: Universal Versus Targeted Assistance, A Muddled Dichotomy

The Commentariat There is a regular commentariat who appear on places such as 'The Panel' on Radio New Zealand (4pm on weekdays), and on panels on television shows such as Newshub Nation (TV3, weekends) and Q+A (TV1, Mondays). Generally, these panellists ... More>>

Binoy Kampmark: Welcome Deaths: Coronavirus And The Open Plan Office

For anybody familiar with that gruesome manifestation of the modern work place, namely the open plan office, the advent of coronavirus might be something of a relief. The prospects for infection in such spaces is simply too great. You are at risk from ... More>>

Caitlin Johnstone: Do You Consent To The New Cold War?

The world's worst Putin puppet is escalating tensions with Russia even further, with the Trump administration looking at withdrawal from more nuclear treaties in the near future. In addition to planning on withdrawing from the Open Skies Treaty ... More>>

Binoy Kampmark: Why Thinking Makes It So: Donald Trump’s Obamagate Fixation

The “gate” suffix has been wearing thin since the break-in scandal that gave it its birth. Since Watergate, virtually anything dubious and suggestive, and much more besides, is suffixed. Which brings us to the issue of President Donald Trump’s ... More>>

Gordon Campbell: On The Ethics (and Some Of The Economics) Of Lifting The Lockdown

As New Zealand passes the half-way mark towards moving out of Level Four lockdown, the trade-offs involved in life-after-lockdown are starting to come into view. All very well for National’s finance spokesperson Paul Goldsmith to claim that “The number one priority we have is to get out of the lockdown as soon as we can”…Yet as PM Jacinda Ardern pointed out a few days ago, any crude trade-off between public health and economic well-being would be a false choice... More>>

Binoy Kampmark: Brutal Choices: Anders Tegnell And Sweden’s Herd Immunity Goal

If the title of epidemiological czar were to be created, its first occupant would have to be Sweden’s Anders Tegnell. He has held sway in the face of sceptics and concern that his “herd immunity” approach to COVID-19 is a dangerous, and breathtakingly ... More>>


  • PublicAddress
  • Pundit
  • Kiwiblog