OPINION: Electricity prices in New Zealand were five times higher in October 2018 than they were over the previous five years.
This article from SEANZ member Infratec was originally published on Stuff.
Electricity prices in New Zealand were five times higher in October 2018 than they were over the previous five years.
That's a shame when New Zealand has just completed an electricity pricing review that identified energy poverty as a key issue.
And all this when there is a simple solution to prevent these price spikes from happening.
It's well known that electricity prices in New Zealand rise when there are either low water levels or gas shortages; and this is exactly what is happening right now.
Electricity in our country mostly comes from hydroelectric plants, with the other noteworthy sources being geothermal, gas and coal.
In our opinion, electricity generation in New Zealand now needs diversification by encouraging investment in wind and solar power to reduce and stabilise electricity prices. In short, it's time to stop importing coal from Indonesia.
Wholesale electricity prices spiked in October 2018 due to low hydro reserves and issues with gas supply.
New Zealand is in the perfect place to take advantage of established renewable energy technologies.