Energy strategy conundrum locked into food, carbon, competitiveness

The Energy Strategy, rather than increasing the certainty of electricity supply, will raise uncertainty and see its price rise substantially, the Employers & Manufacturers Association (Northern) says.



“The energy strategy needs more thought, careful planning and even more careful execution if our business competitiveness and standards of living are not to be put at risk,” said Alasdair Thompson, EMA’s chief executive.



“No other OECD country has begun to attempt what Energy Minister David Parker has announced.



“The strategy has the potential to distort food production and prices, and the proposed carbon trading regime.



“Certain elements of it are in conflict with other objectives.



“For example, Energy Minister David Parker wants to see the wide deployment of electric vehicles at the same time as placing a 10 year prohibition on the construction of any further gas fired power plants.

But to do this for the number of electric vehicles envisaged will require a vast increase in power generation on a scale not available except by thermal or nuclear power generation.



“We expected coal fired power stations would be banned even though China is commissioning one a week, but see no reason to ban efficient gas fired plants.



“New Zealand needs to maintain reliable base load capacity and efficient low emitting gas plants, such as the new EP3 plant at Huntly, are a sensible way to ensure this.





“By 2050 the strategy suggests half our land transport fleet will run on biodiesel. While we have long backed the use of biodiesel, all existing biofuel crops are grown at the expense of food production and such as the Amazon rainforest.



“The Greens view that this can be avoided by regulation is not credible.



“We support action to increase energy efficiency including schemes to boost energy efficiency in the home.



“But market mechanisms are the best way to make efficient use of resources.”