Government policy is directed at New Zealand producing 90% of its electricity requirements from sustainable energy options. A good clean Green wholesome target, policies have been cleverly lined up alonside other policies (Building Gas Thermal fired Generation banned for 10 years) laws amended (Rescource Management Act) and political parties lined up, (The Greens) ensuring the policy becomes reality.
Opposing, let alone changing a wind farm application promoted by a government owned SOE which has signed contracts with local councils and others before the RMA process has kicked off makes the task all the more daunting. The feeling of a web slowly surrounding its prey becomes very real.
Why are they doing this? What benefit will me and you the consumer receive? Will the price of my monthly electricity bill go down? An obvious question to ask. Doesn’t it make sense that a ‘free’ public asset available everywhere, the wind, when it is used to generate electricity drag the price down? And by how much?
The short answer is no, quite the opposite in fact. Commentators and experts agree and Wind farm developers and politicians do not disagree, electricity costs will head northwards, perhaps that should be skywards!! So while the rest of the world positions for growth and basic costs of production are minisminsed NZ positions for increasing costs of production. Fisher and Paykel and ANZNational bank announced during the week the migration of a 1,500 jobs offshore to countries where the costs of production are less. Is this the start, are businesses saying one thing ‘yes we would like to be part of a clean green economy’ but in reality looking at future shareholder returns and saying ‘gee the economy is not that rosy lets start reducing our exposure to NZ and jobs moving offshore is the start. Increasing a basic cost of production, electricity, playing around with security of supply adds to an environment of uncertainty making NZ a riskier place to invest.
