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.
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.
It takes years to convert a transport system and the sooner it is started the sooner the country will benefit.