Interesting article in todays NBR on Tiwai Pt. Opinion suggests that likely electricity transmission cost reduction will push Tiwai into top 25% of Rio Tinto assets and cement a long term future in NZ. The article also suggests that even at current electricity pricing the plant is likely to stay open. Worth reading if you have access to NBR
china has in the last few mths cut supply of aluminium this is supporting aluminium prices too at the moment
Interesting article in todays NBR on Tiwai Pt. Opinion suggests that likely electricity transmission cost reduction will push Tiwai into top 25% of Rio Tinto assets and cement a long term future in NZ. The article also suggests that even at current electricity pricing the plant is likely to stay open. Worth reading if you have access to NBR
What a cross subsidy. You take 14% of the countries energy and pay nothing for transporting it even though the transmission system had extensive assets built just for the smelter.The domestic consumers will pay for the smelter costs of transport. The EA is politically directed.
What a cross subsidy. You take 14% of the countries energy and pay nothing for transporting it even though the transmission system had extensive assets built just for the smelter.The domestic consumers will pay for the smelter costs of transport. The EA is politically directed.
Not quite the situation.
Current electricity "transport" costs across transpower grid is averaged and levied on all users on a per unit basis
Proposed new system is "user pays", where "transport" cost across the part of the grid actually used are levied to a particular user.
So Tiwai is only charged their share of transporting and maintaining the manuapouri to bluff section of the grid. They would no longer get charged for maintaining and expanding the grid elsewhere
Sounds fair to me, and allows the generators to increase their unit price to Tiwai
The problem is that much of their electricity comes from the north and the reinforcement around Dunedin, invercargill and Clutha is for that .I know because I was part of designing and building it.
Manapouri was built to supply Tiwai Pt. It generates more power than Tiwai uses. In this situation it seems completely fair they are only charged for building/maintaining their share of the manapouri-bluff grid
The problem is that much of their electricity comes from the north and the reinforcement around Dunedin, invercargill and Clutha is for that .I know because I was part of designing and building it.
South flow energy with the Lower South Island (LSI) is not an issue. It was before Clyde was built, but hasn't constrained within the LSI in southflow for a very long time. The LSI upgrades and the SPS at Roxburgh is to allow more energy export from the LSI. I know because I was also part of planning for this work. I suspect we have come across each other in past.
Originally Posted by xafalcon
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