Source: BusinessNZ
The Government’s announcement that it will proceed with the procurement of an LNG terminal has the potential to lower the extreme electricity prices NZ experiences in a dry year when the lakes are low, the BusinessNZ Energy Council (BEC) says.
Director of Advocacy Catherine Beard says the economic analysis indicates a net benefit to all electricity consumers, including industrial and commercial energy users.
“BEC supports steps made to increase security of supply, and the greater energy security provided by adding another fuel source to the mix is welcome. But it is regrettable that this decision has had to have been made.
“There are no easy choices to get through the energy transition from declining natural gas supplies to renewables. In the current context, LNG appears to have been the necessary course of action.
“As everyone is finding out the hard way, energy is not ‘a nice to have’ but a critical service that enables economic activity and social wellbeing. Without reliable and affordable energy, growth and investment stall.”
Beard says the risk of de-industrialisation in New Zealand is real without policy certainty and strategic direction required to unlock investment in new supply.
“A comprehensive energy strategy is essential to give the sector clarity and ensure long-term affordability and reliability.
“BEC has long called for such a strategy, one with bi-partisan support. We cannot lurch from pillar to post on the future of energy, with every change of Government. Energy is a fundamental need for a functioning economy and healthy society, and we need to plan for a successful supply of energy with a regulatory environment that gives predictability and encourages investment.
“We look forward to the Government releasing more information as the procurement process moves forward.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
