Feb 28, 2025
Newstalk ZB
Newstalk ZB: Work needed to ensure potential energy sector changes are mandatory - electrification advocate

There’s been an understandable focus on the price of electricity recently, with fears we may be in for a repeat of the wholesale debacle of 2024 as our hydro lake levels remain low. The Energy Competition Taskforce made another announcement about levelling the playing field for independent retailers and removing preferential pricing for the gentailers’ retail arms. Just like the previous announcement that talked about moves to level the playing field for customers with solar and batteries, this is another positive step towards a fairer system, but it’s not guaranteed to bring electricity prices down, as Mike Casey told Andrew Dickens on Newstalk ZB.

Many of the innovations in the energy sector come from independent retailers, so it's good that there will be fairer competition. But the future increases in our bills are likely to come from poles and wires, not generation. What is more likely to bring prices down is widespread adoption of solar and batteries, and a recent paper in Nature suggested that solar and storage would be the cheapest energy source in most of the world by 2030, with most of the switch happening by 2027. With our world-class hydro scheme, we already have a lot of the storage built, so New Zealand is in a good position in comparison to many other countries and we’re looking a gift horse in the mouth if we don’t follow the money.

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