New Zealand's electricity companies, in common with those around the world. are on a plateaux of consumption caused by more efficient appliances and the big increase in solar panels. This trend has only just started and as the prices of solar panels falls it becomes much cheaper to make your own electricity.
This puts the power companies in a commercial dead end where chasing diminishing customers into a market of falling prices is not a good option.
This puts the power companies in a commercial dead end where chasing diminishing customers into a market of falling prices is not a good option.
The big area of energy use that is untapped is transport and here New Zealand is miles behind the rest of the world as we only have 700 electric cars and a very small network of electric rail system in Auckland.
At least forty years ago Europe started to modernise and electrify its rail system, as a method of separating heavy transport from domestic traffic and reduce road deaths and reduce congestion. It is also makes good economic sense as oil is mostly imported and electricity is mostly domestic energy.
Oil is a diminishing resource with a volatile price and its cheap today but will be expensive in five years time and New Zealand has more than enough renewable energy to power the whole country without using oil or coal.
Fraser Whineray, CEO of Mighty River power, recognises this
Read Here. and it trying to do something about it but he is ploughing a lonely furrow in what should be a busy and crowded market.
At least forty years ago Europe started to modernise and electrify its rail system, as a method of separating heavy transport from domestic traffic and reduce road deaths and reduce congestion. It is also makes good economic sense as oil is mostly imported and electricity is mostly domestic energy.
Oil is a diminishing resource with a volatile price and its cheap today but will be expensive in five years time and New Zealand has more than enough renewable energy to power the whole country without using oil or coal.
Fraser Whineray, CEO of Mighty River power, recognises this
Read Here. and it trying to do something about it but he is ploughing a lonely furrow in what should be a busy and crowded market.
I believe that bold action is needed and it requires substantial investment to change the market. If two or three power companies joined together to buy the operating rights of a railway and converted it to run on electricity they could go into direct competition with road transport. We need a transport policy more like Europe where government's recognise the value of the rail system and put it on the same financial system as roads where improvement is considered an investment in infrastructure for sound economic reasons.
It takes years to convert a transport system and the sooner it is started the sooner the country will benefit.
It takes years to convert a transport system and the sooner it is started the sooner the country will benefit.
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