The BusinessNZ Energy Council (BEC) says investigating answers to the dry year problem is important, but options must consider solutions for both short and long-term energy issues.

Executive Director Tina Schirr says "with the world moving to decentralised options, and with extreme weather events highlighting risk, it is important the Government considers options that are modular, decentralised and spread risk across the country to build resilience".

"The NZ Battery Project’s completed first phase shows a pumped hydro scheme at Lake Onslow could take up to nine years to build, with an estimated building cost of $15.7 billion.

"The dry year problem and demand peaks are serious issues for the sector that need to be addressed. But Onslow carries a huge price tag for a solution that isn’t modular and won’t deliver in the next few years.

"Clean energy storage solutions will be an important part of our energy system today and in the future. Unfortunately, the pumped hydro solution at Onslow will come too late to address the immediate issues facing the energy sector."

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