New study warns of major energy costs in trying to replace natural gas
A new report today warns there will be major costs to New Zealanders in trying to replace the role of natural gas, according to the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
鈥淣atural gas provides 20% of New Zealand鈥檚 primary energy, and this report shows there is no proper plan or research on what could replace that. We think it shows the need for a serious rethink on new exploration permits,鈥� says PEPANZ CEO Cameron Madgwick.
The report by Vivid Economics 鈥淕as infrastructure futures in a net zero New Zealand鈥� was commissioned by First Gas and Powerco and released today.
鈥淚t outlines the major difficulties in trying to replace the role of natural gas in providing electricity to cover shortfalls in winter, and for heavy vehicles and industrial heat. It shows the problems with not keeping our options open.
鈥淚t warns there could be substantial power price increases for New Zealand 天美直播s and businesses as a result with a cost of up to $2,700 per household per year. This works out to nearly $52 per week extra in increased costs.
鈥淭here is wide support for lowering New Zealand鈥檚 net emissions but there has to be careful thought around the best way to do this at least cost.
鈥淲e strongly support the call for further research into carbon capture and storage, hydrogen and tree-planting to offset emissions. These allow natural gas to be used with much lower net emissions.
鈥淎 pragmatic way forward would be for the Government to ask the Interim Climate Change Committee to consider the role of natural gas as part of its work on New Zealand鈥檚 energy system.鈥�
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Note to editors
*Vivid Economics also supported the Productivity Commission鈥檚 low emissions economy inquiry, and the cross-party Parliamentary working group report 鈥淣et zero in New Zealand.鈥�