News

Below are the top 5 points - wins and impacts for SEANZ members to be aware of, followed by our media release.

1. All consumers, residential and business, shouldn’t expect any significant changes or quick fixes to reduce electricity prices - meaning the economic case for solar remains strong.
2. The importation of LNG as a stopgap solution for dry year risk; we totally disagree with this. It increases New Zealand's electricity generation emissions and leaves NZ exposed to volatile international gas prices, potentially locking in higher energy prices for the future. We would rather see investment support for PV and BESS-focused initiatives. That said, increasing prices to pay for the infrastructure and delivered gas for businesses reinforces the economic case for solar. There remains a high risk of electricity shortages and extreme price increases next winter, which presents an opportunity. 
3. The government will use the All of Government (AOG) contracts to underwrite energy projects. The keywords used are “the full range of scale of project is in scope, including grid-scale, locational supply, and/or site-specific projects.” The implications are clear for our industry – there are already government agencies with which SEANZ is engaging on this matter on behalf of our members.
4. The Electricity Authority is responsible for increasing competition. They will gain new powers to ensure they are a more efficient regulator and can make faster changes to policy settings, which they can manage with a bigger pointed stick if necessary. This helps us considerably, given that the EA is working closely with us on our wish lists on which the Minister for Energy is discussing with us.
5. A recommendation was made to rationalise 29 EDB networks to 5. The government did not accept this. However, given the innovation in the electricity space that is happening through the increased use of PV, BESS and flexibility, opportunities exist for EDBs to improve efficiency by optimising network use with non-wire alternatives (BESS and PV) to defer costly upgrades that would otherwise be reflected in consumers' power bills. This opportunity for SEANZ members will continue to grow and will be a net win for New Zealand energy consumers.

Please find more details on these specific parts of the announcement at the links below:

Detailed information on announcements
Info on impacts on EDB networks and how it can help us
Info on leveraging government demand
Info on strengthening the Electricity Authority to support and drive competition
Recommendations made under the review and government's response

Press Release: Government Announcements on the Energy Sector 

SEANZ welcomes some of the announcements made by Finance Minister Nicola Willis and Energy Minister Simon Watts but highlights the missed opportunity to future-proof the electricity sector through greater support for solar and battery storage. Announcements are here.

SEANZ supports:

• As a first step, distribution reform with rooftop solar, batteries, and decentralised technologies, which will enable the rethink of networks and regulation with Electricity Distribution Businesses (EDBs) to deliver improvements and increase efficiencies. This could include standardising processes, such as connection applications, and reducing processig times, which can help avoid unnecessary costs for consumers with EDB charges.
• Strengthening and empowering the Electricity Authority to ensure it has the right tools to drive competition and deliver the much-needed outcomes for all consumers across the sector.
• Leveraging whole-of-government supply contracts to drive new investment in energy supply, which should include the installation of rooftop solar on all government properties.

SEANZ Chair Brendan Winitana says: “These changes will potentially increase the uptake of solar and battery storage, which have traditionally been stymied in part by rules, regulations and uncooperative industry participants, but only if the Electricity Authority are given sufficient power.

“If the Electricity Authority can enable the innovation happening at the grid edge to move into the mainstream, it can drive the reduction of grid demand and reduce energy prices for many more consumers - commercial, industrial and residential”, says Mr Winitana.

But SEANZ also expresses disappointment that imported fossil fuels continue to be a focus for dry year issues. Further removing barriers and providing incentives to accelerate renewable generation and storage, both at utility-scale and on rooftops, would enable the more strategic use of our hydroelectric storage assets, which is necessary to reduce our dependency on fossil fuels.

“Today’s announcement lacks recognition that with falling solar and battery prices and uptake of Electric Vehicles, a resilient, clean and low-cost energy future can be led from the kitchen table as much as the boardroom table – however, the focus seems to remain on gold-plated projects that will cost taxpayers more in the long-term”, says Mr Winitana.

For further information contact:

SEANZ Communications Manager

Kristin Gillies

[email protected]