The Smart Energy Alliance welcomes today’s Government decision to scrap the proposed levy on Kiwi households and businesses to fund a new LNG import facility. However, the Alliance continues to question whether this facility is necessary, and further work is needed to understand the true costs and benefits.
The group says MBIE modelling, that the Government is relying on for its suggested LNG energy savings, must be released in full and independently reviewed before any contract is signed.
Soaring LNG and fuel prices have shown that New Zealand needs greater sovereign energy resilience to maintain reasonable energy prices, said Smart Energy Alliance spokesperson and NZ Green Building Council chief executive Andrew Eagles.
“Importing gas is not energy independence. Every dollar spent on LNG from global markets is a dollar that leaves New Zealand, does not create local jobs, and does not build the modern, distributed, energy system our economy needs,” said Andrew.
“Many, including some gentailers, are questioning if the terminal is necessary. Things have changed markedly since plans for the terminal were first announced. We now have more renewables coming online. Meridian has just received approval to access more water storage, and there is already a strategic coal reserve and demand flexibility agreements for big users, so dry year risks are falling.”
Sapere’s recent report highlights a lower capex, lower risk option to transition to renewable dry year solutions and help move businesses off gas.
“The Alliance is concerned that today’s move looks like a way to disguise who actually pays by pushing costs through energy companies,” said Andrew. “There’s little justification for the electricity sector to carry this burden, given renewable growth and other factors have already improved supply resilience.”
The Smart Energy Alliance says there are better options on the table to deliver a secure energy system for New Zealand. Instead of locking in costs for Kiwi families and exposing the economy to volatile prices, the focus should be on renewable energy made here in New Zealand.
We need a whole-of-system energy strategy that accelerates electrification and renewable supply, affordability, resilience, and sovereignty together.
Note to editors: The Smart Energy Alliance is a coalition of leading energy, business, and consumer organisations advocating for a smarter, renewable-led energy system for New Zealand. It is made up of Master Electricians, Sustainable Business Network, Consumer NZ, Rewiring Aotearoa, NZGBC, Bioenergy Association and SEANZ.