No excuse for faltering energy supply

Secure electricity supply is fundamental for business and there’s no excuse for the current faltering supply, says Business NZ.

Chief Executive Phil O’Reilly says the Government set up the Electricity Commission precisely to ensure security of supply.

“But at the same time, it is attempting to ban the building of new thermal generation plant as part of a drive to get 90% renewable supply.

“These goals are in conflict. Currently around 50% of our electricity comes from renewable sources and that 50% is enough to make it virtually impossible to achieve security of supply, since hydro and wind power are dependent on there being enough rain or wind.

“We can certainly aim for 90%, but we have to have enough backup from thermal generation to keep businesses running.

“New Zealand business and the New Zealand economy would be further damaged if the proposed ban on new thermal plant became law.”

Mr O’Reilly said the Energy Minister’s recent statement that “…you can’t have a hydro-based electricity system and still have enough electricity for everything to run really flat tack in a really dry year…” indicated a lack of commitment to secure electricity supply.