Media Statement
5th May 2008
For immediate release

Renewable electricity options can help families avoid power crisis

The average New Zealand family home could generate most of the electricity it needs to avoid power shortages, Sustainable Electricity Association New Zealand (SEANZ) said today.

“The looming winter power crisis is a timely reminder that technology is available to give families confidence about their electricity supply,” SEANZ chief executive Charmaine Watts said today.

“Small scale renewable electricity options give households more confidence their lights will stay on in a power crisis because they control the power source, not big electricity companies.

“Importantly, it gives households greater control over their power bills. They can also save money by selling excess generated electricity back to power companies.

“A recent Electricity Commission report clearly shows that residential users have borne the brunt of price hikes in recent years. Prices have risen 48% for an average household since 2004 (See page 8, Report, 4 October 2007, here.

“Not only can small scale renewable electricity help families through any power crisis, it also works to offset greenhouse gas emissions – a win-win for the environment.”

“Generating renewable electricity where it is consumed is known as small scale renewable/distributed generation. It’s becoming an increasingly viable option for households, not just larger consumers.”

The technology 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

“This makes sense in a long narrow country like New Zealand where centralised generation from power stations means you have to send power from one end of the country to the other,” said Ms Watts.

“On-site power production avoids transmission and distribution costs for the delivery of electricity for a small household consumer where network charges may account for over 40% of the price.

“While the up-front capital costs of implementing these technologies are more expensive per kilowatt hour, rising electricity prices and the reducing cost of small scale technologies means they are fast becoming economic for the average household.

“However, there is much to be gained from the government encouraging greater uptake. As countries like Germany, the United States and Japan have done, economic incentives and changes to regulations could dramatically change the attractiveness of these alternatives.

“Increasing adoption will also help meet the government’s target of generating 90% of our electricity from renewables by 2025.

“The looming power crisis makes it even more urgent that the government now acts and embraces this opportunity,” said Ms Watts.