Power prices will not drop nationwide. The lower South Island will see a drop in wholesale prices, but that will not be reflected across the whole country. There is a constraint in the lower south island that prevents that extra energy from being moved north. The issue is that the power lines north of Roxburgh just cannot carry this extra energy.
Transpower are proceeding with the Clutha Valley to Waitaki upgrade, but will take a number of years to complete, and even then will only allow an extra 400 MW or so north, not the full 600 MW lost demand at Tiwai.
The hope is that dairy factories in the lower South Island that currently burn coal will move to electricity to make up that additional demand. For the rest of New Zealand it will be business as usual.
For the country as a whole demand has been increasing at around 300 MW per year for the last 4 or 5 years. This is being driven by additional irrigation needs and the conversion of the car fleet (albeit slowly) to electric. So in 2 years the national demand will be right where it is today.
Interesting development. Could be the tipping point for a large scale roll-out of EV adoption and infrastructure. Chuck in some economic recovery $$s from the Government and I can see some public-private initiatives being announced between councils and gentailers for more kerb-side charge points, consumer incentives for EV adoption and attractive long-term electricity purchase contracts for electrified public transport and freight operators. The strategy will be there waiting to execute - not like they haven't had time to think about it.
"The market can stay irrational longer than you can stay solvent." – John Maynard Keynes
Government should buy tiwai for $1. Save Rio Tinto $46 mill next year.
If Rio Tinto can't make a dollar then what hope the NZ Government ? Wonder what the clean up costs will be ?
While I feel sorry for Southland and all the people affected, gotta give Labour points for not chasing the power price down, especially in an election year. Datacenters....I believe they use a lot of power...wonder if they might be viable in the South ? Or should we take this closure as long term gift to NZ as an additional supply of renewable energy ?
Another grubby filthy attempt by Rio T to extort a cheaper power price out of NZ. Three months out from an election with unemployment sky rocketting..another test for Jax and co...will she smile and cough up?. Probably I suspect but don't let Twyford out of his box. Let Shane do the talking.
Bye bye Rio and take your ouvea dross with you.
Interesting development. Could be the tipping point for a large scale roll-out of EV adoption and infrastructure. Chuck in some economic recovery $$s from the Government and I can see some public-private initiatives being announced between councils and gentailers for more kerb-side charge points, consumer incentives for EV adoption and attractive long-term electricity purchase contracts for electrified public transport and freight operators. The strategy will be there waiting to execute - not like they haven't had time to think about it.
NZ should be at the forefront of EV use given our plentiful hydroelectricity and need to import dirty fossil fuel.
Another grubby filthy attempt by Rio T to extort a cheaper power price out of NZ. Three months out from an election with unemployment sky rocketting..another test for Jax and co...will she smile and cough up?. Probably I suspect but don't let Twyford out of his box. Let Shane do the talking.
Bye bye Rio and take your ouvea dross with you.
Well said, good riddance Rio. Sad about job losses though but NZ Inc need to invest to create new jobs in other industries.
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Originally Posted by bottomfeeder
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