No country has ever achieved significant economic
growth without access to cheap, reliable, and abundant
energy. We are no different. This has been the case for
every country since the Industrial
Revolution.
Renewables such as solar or wind
have a part to play but cannot, and should not, be solely
relied upon for electricity supply.
- Solar and
wind output can fluctuate extremely. This requires alternate
generation to be already online in reserve (generators
cannot turn on and off instantaneously). There is a mismatch
between high solar production during the middle of the day
when demand is lower, and peak electricity demand in the
evening when supply is low. - Windmills, which are a
blight on the landscape, are problematic too. The wind
doesn’t always blow, and rotating blades are a danger to
flying wildlife. Environmental concerns such as the disposal
of old turbine blades and potential asbestos exposure are
yet to be resolved. - Some turbines use asbestos for
the turbine braking material linings, which is a significant
health hazard to people in proximity. This danger is still
not fully assessed in New Zealand.
New
Zealand uses a Marginal Cost Pricing
Model:
This wholesale spot market sets the
price for all electricity by the most expensive generation
at any one time. Regardless of where the power comes from,
all generators get paid that same high price.
- The
Conservative Party would separate generation companies from
retailing. This would allow retailers to source wholesale
electricity from any provider. This incentivises
competition, reducing electricity prices for homes and
businesses.
Underinvestment in New
Generation:
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Generation capacity growth has been slow.
The Conservative Party would encourage investment in new
generation to provide “base load”
supply.
- Encourage natural gas power generation
once our own commercial supply of gas is established,
providing base load supply when hydro lakes are low, or when
wholesale energy prices are high. Resulting in reduced
wholesale prices. - Encourage the expansion of
geothermal generation. - Encourage new clean coal
generation.
