Your electricity bills are going to skyrocket. In a recent NBR article, Contact Energy’s CFO, Dorian Devers, predicts the distribution network component of your bill could double by 2030.
‘Distribution’ is the part between the huge transmission towers running up the nation’s spine and your light switch, representing about 27% of your bill. In the past, maintenance and a few new power lines generally did the trick. But with climate change, that’s a thing of the past.
The country is weaning itself off coal boilers, petrol and other fuels and we’re subbing in electricity. Our choice of geography and weather means 85% of our production is renewable. But, according to the Boston Consulting Group, distribution networks still need to build another $22 billion worth of infrastructure this decade. That’s about another $45 per month per person until 2030. And it rises the following decade.
The government knows this and have offered a range of options from clean car discounts to a $140 million grant if you’re NZ Steel. The Energy Efficiency & Conservation Authority (EECA) hands out all sorts of subsidies and advice as do many of the 29 distribution companies which are generally locally owned in some form.
There is a growing list of consulting companies so you can’t want for advice and some freebie handouts to get started. Solar panels are a sexier option and thanks to mass production in China the payback period seems to be 7-8 years and dropping while the market is offering a range of payment plans.
A cynic might think Mr Devers comments were the age-old ploy to distract attention from his company’s record earnings (EBITDA) forecast of $600 million in the year to June 2024.
Regardless, electricity is a major lever in New Zealand’s bid for net carbon zero by 2050 and you are going to pay for the transition. Now could be your time to track and reduce it.
Chris Bailey
GreenHalo Founder
Disclaimer: Chris is a Director of Network Waitaki, an electricity distribution company in North Otago. This article represents Chris' own thoughts and not necessarily those of Network Waitaki.
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