Media statement 18 April 2008
For immediate release

Small scale renewable energy can offset big power system losses

Power generated closer to where consumers actually use it offers tremendous benefits for the country by greatly reducing current power systems losses, Sustainable Electricity Association New Zealand (SEANZ) said today.

Its comments follow circulation of the Electricity Commission draft discussion paper showing consumers are paying more than $200 million a year for power lost on the distribution system (see The Business Herald today).

“New Zealand's current centralised electricity generation system means power has to travel relatively long distances, which results in New Zealand having
one of the highest power loss rates in the developed world. Consumers foot this bill,” said SEANZ CEO, Charmaine Watts.

“It makes far more sense to generate more electricity at the source of consumption to offset transmission losses and minimise power outages.

SEANZ promotes small scale renewable energy. This involves small power sources located within or close to homes and businesses:

• Photovoltaic solar power – converting the sun’s energy into electricity through special solar cells. 50m² of cells are enough to power the average NZ home.
• Small scale wind power – turbines generating up to 100 kW, which is enough to power the average home, business or farm.
• Small scale hydro power – turbines generating up to 1 MW.

Grid-connected photovoltaic cells (PV) continue to be the fastest-growing power generation technology in the world, with 50% annual increases in cumulative installed capacity in both 2006 and 2007. An estimated 2.7 GW was added globally in 2007 - the equivalent of seven Clyde Dams. This would meet the energy needs for over 400,000 average NZ homes and feed PV power back to the grid.

“As the price of electricity rises and transmission becomes a more serious issue for security of supply, it’s no wonder small scale distributed energy is becoming more attractive.

“Coupled with decreasing costs, there is no doubt small scale renewable energy will be an increasingly viable option and a critical part of the solution to our energy challenge.

SEANZ is hopeful the government’s Energy Strategy released in October 2007 will make recommendations on what policies and programmes, including possible specific economic incentives, could be introduced to encourage additional uptake of distributed generation by the end of 2010.

“We are confident the government will listen and embrace this opportunity as so many other governments are doing around the world. If we want a sustainable energy future it is vital steps are taken as soon as possible,” said Ms Watts.