We have an energy problem – but there is a plan to fix it.
Yesterday James attended the launch of the Energy Action Plan, ‘Unlocking the energy sector to unlock economic growth’.
Last year, we saw the result of running short of electricity. The spot prices climbed to unsustainable levels that triggered a number of companies to review their businesses and in several cases make the decision to close completely. The latest us the paper producing plant at the Kinleith Mill in Tokoroa.
These closures will have direct impact on many NRC members that cart both raw materials in or finished product out.
Elsewhere in the supply chain there will be changes as less is manufactured in New Zealand resulting in an increased reliance on imported products.
Minister Shane Jones stated last year that New Zealand is facing a period of de-industrialisation as a direct result of uncertain supply of affordable energy.
Not only do we now have uncertain supply, but to add some additional pressure New Zealand needs a massive boost in energy generation to decarbonise industry and transport.
The ten step Action Plan has been developed by the Auckland Business Chamber and the Northern Infrastructure Forum, and builds on the recommendations of a gathering of Upper North Island sector leaders on 4 December 2024.
NRC agrees changes are needed and we hope this initiative will lead to a significant increase in energy generation – soon. NRC supports a low-emissions, climate resilient future and we have an important role to play.
NRC is a foundation member of the Northern Infrastructure Forum and a member of Auckland Chamber of Commerce. We will keep a close eye on progress with this action plan and will engage where we see fit.
For New Zealand’s economy to grow it needs plentiful, reliable and affordable energy.
The Ten Actions needed are:
- Single energy regulator by consolidating the three existing energy regulators into a single agency, to provide leadership and accountability.
- Maintain strategic reserves by ensuring sufficient back-up energy supply is in place, to provide support during prolonged dry spells.
- Develop the New Zealand energy strategy
- Cross-party support by securing bi-partisan support for the energy programme.
- Ensure generator-retailer model does not stifle competition by analysing the impact of the gentailer model on competition, assess policy responses (including separation of generation and retail functions), set out implementation steps.
- Greater use of demand response by developing new demand response tools that drive greater industry utilisation.
- Long-term contracts to drive generation by facilitating the development of long-term contracts; drive demand through government procurement.
- Unlock New Zealand’s geothermal potential by formulating a sector development blueprint for geothermal energy, with a view to designing a regime that is as enabling as possible.
- Remove red tape around distribution streamlining the planning and consenting framework around the delivery of distribution infrastructure.
- Energy sector Warrant of Fitness to independently review institutional arrangements and measure performance against key metrics.
The Action Plan is well worth a read. Download it HERE.
If you have any questions or feedback reach out.
Justin
Justin Tighe-Umbers
Chief Executive | National Road Carriers Assn
DDI: +64 9 636 2951
