'A very expensive way to cut emissions' – energy expert talks Government push to transition to 100% renewable electricity

May 1, 2019

New Zealand Initiative research fellow Matt Burgess joined Breakfast this morning to discuss the Government policy’s impact on emissions.

Yesterday, it was found that that solar power has been found not to be the silver bullet sustainable energy source it has been sold to be.

Now, the Interim Climate Change Committee's report to the Government on the country transitioning to renewable electricity by 2035 has been delayed another two weeks after it was found that the policy would substantially increase electricity prices.

"The policy will increase the price of electricity quite substantially. 14 per cent for households, 39 per cent for industry. It also says that the policy will only have a limited impact on emissions at all,” New Zealand Initiative research fellow Matt Burgess told TVNZ1’s Breakfast this morning. "It's a very expensive way to cut emissions."

Mr Burgess said while there are "alternative approaches that the Government can take to achieve its emissions targets", the 100 per cent renewable electricity policy is "a very expensive way to achieve not very much for the environment."

He added that coal and gas power may act as "very cheap insurance policies” and a good "source of security" against 100 per cent renewable energy policies, which will see an increase in the rate of blackouts.

"You're going to see a lower security of supply with a very high share of renewables … so one of the benefits of coal and gas is that they’re very cheap insurance policies, and it's good to have that source of security there just in case it’s needed, and one of the costs of the policy is that it gets rid of insurance policy for our system."

"[Renewable energy] is certainly attainable if you're prepared to spend the money, so if you’re prepared to wear the 39 per cent increase in the price of electricity, you can do it – it’s just a question of how many wind turbines and solar panels you’re willing to build to cover what’s lost from that last coal or gas station."

Mr Burgess said while the committee "suport the intent", they would like to see the Government "step back from this 100 per cent renewable electricity policy."

"By far, the better approach that the Government can take is to continue strengthening the emissions trading scheme we have here in New Zealand. The Government's already made announcements on that, we support that, they should keep going because it's by far the better approach for dealing with a problem like emissions."

SHARE ME

More Stories