Labour/Green policy would lead to less renewables

February 20th, 2014 at 4:00 pm by David Farrar

I saw a tweet by Chris Tremain which said:

Meridian acknowledge at Financial Review that Labour/Green Single Mkt proposal would have negative impact on renewables! Wow!

Surely this is not true. With all their claims we must go carbon free and have more renewable energy, would they really have a policy that would discourage renewables? It seems so.

Hamish Rutherford at Stuff reports:

The head of New Zealand’s largest electricity generator says the Opposition owes it to New Zealand to give more details of its power plans.

And he warned the plan could undermine investment in renewable energy.

Today Mark Binns, chief executive of Meridian Energy, told the commerce select committee that while a lack of detail meant it was hard to properly analyse the plan, Meridian believed it would favour thermal generation over renewable plants such as wind farms.

“Our view is it would potentially impact on renewables because it would make thermals, particularly gas plants – which are easier to consent and easier to put in place quickly – more viable in that environment,” Binns told MPs..

“If you have a central buyer, the Crown has the responsibility for deciding the next wind farm or other power that is required, and wind farms take between five and 10 years to consent.

“Why would we keep investing in developing renewable options, given the uncertainty around central buyer?

“The reality is it’s much easier for someone like Todd Energy to basically get a piece of land with gas to the front door, and strap on a jet engine to a lump of concrete and generate electricity.”

Now Meridian know what they are talking about. They are the largest provider of renewable energy and it is a big part of their brand. They are very big on renewable energy. But as their CEO points out, the Labour/Green policy will encourage non-renewables.

Also not even Gareth Morgan agrees with their policy:

Today economist Gareth Morgan waded in to the debate, saying the issue of poverty was linked more to tax and welfare than the electricity market.

“There is little reason to think that the benefits from the Labour-Greens proposal would go to the people that actually need it,” Morgan blogged today.

He also dismissed the idea that the plan was a way to solve the problem that owners of hydro plants get to use water, a public resource, for free.

“If it is now deemed unfair that hydro generators can use water for free, then charging generators for water use would be a better remedy than tinkering with the electricity market,” Morgan wrote.

He added there was “no evidence of price gouging” in the wholesale electricity market, and the problem, if there was one, was more likely in the retail market.

I can’t think of a single reputable figure who thinks the Labour/Greens policy will work. It was savaged by Professor Frank Wolak, whose work they cited as the reason for their policy.  Helen Clark refused to do it, because she knew it would not work. It’s arguably the worst of their many bad policies.

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27 Responses to “Labour/Green policy would lead to less renewables”

  1. All_on_Red (1,583 comments) says:

    Yep, the Greens once more not telling the truth. Will Russell Norman et al ever be honest with the NZ public. Yeah, nah.
    The thing is, the Greens won’t believe a word of what Binns or anyone else counter to their view, says.
    They really are deniers of facts. Ironic really.

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  2. Grizz (605 comments) says:

    Probably Ganesh Nana and BERL approve of the policy

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  3. Reid (16,467 comments) says:

    It’s arguably the worst of their many bad policies.

    There are a lot of them to argue about, aren’t there, but since when have undesirable unforeseen side effects been a barrier to any lefty madness, when it represents an opportunity to set-up a brand new state agency with all the trimmings? Who cares it they destroy the market? The market’s evil, it should be destroyed, that’s not an argument against the policy, it’s a plus.

    It’s so bad, I’m picking Wussel dreams about making it a bottom line in any coalition negotiations, as he sleeps in his taxpayer-funded house that we bought for him.

    What they’ll probably do is make the generators sell them a certain amount from renewables, because they can. And if they don’t, why they just won’t buy anything at all from said generator. There. Fixed it. Any other questions?

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  4. corrigenda (142 comments) says:

    Since when have the Greens come up with a sane, sensible working policy?? Sorry, it is not in their nature!!

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  5. srylands (410 comments) says:

    I am fairly sure Russell Norman has responded to Meridian’s statement by saying the Government would simply ban any new thermal generation.

    Sorry, I can’t find the reference.

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  6. Duxton (651 comments) says:

    I think this is disgraceful. Clearly National have spent taxpayer funds flying this witness from….wherever….to Wellington to discredit the hard-working Greens, who are only trying to secure a brighter economic and environmentally-sustainable future for NZ.

    He’s just a rich prick, trying to protect what he has while families starve and shiver through the winter. Think of the children!!!!

    This is an assault on democracy, and an abuse of Parliament!

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  7. Roflcopter (463 comments) says:

    To be fair, Russell did ask for something worthwhile this week….

    “Mr. Speaker, I seek to leave the house….”

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  8. burt (8,271 comments) says:

    It’s arguably the worst of their many bad policies.

    I’m picking the cherry on top is just days away. Shane Jones has been doing the spade work for a Labour/Green coalition and the KiwiFood (monopoly state run supermarket) will be announced in the next few days.

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  9. thedavincimode (6,759 comments) says:

    … so, the whole idea is completely rooted like the solar proposal.

    Meaning that it is inevitable they would proceed with both.

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  10. ldypen (40 comments) says:

    God your a nasty bunch of rightists… now, it’s quite obvious that Wussell has done his home work, in fact I am sure that he sat there at night in his house made from hand cut non treated renewable timber and carefully wrote his electricity plan down on his papyrus reed paper while using his quill pen with natural ink made from the wild flowers in his garden, while basking in the light of his many and various candles made from his own ear wax… so he’s serious… and you all should be too!

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  11. Psycho Milt (2,412 comments) says:

    “Our view is it would potentially impact on renewables because it would make thermals, particularly gas plants – which are easier to consent and easier to put in place quickly – more viable in that environment,” Binns told MPs.

    Perhaps it was this chap who came up the river in a cabbage boat – he seems to imagine that thermal power plants would be easy to consent under a government that included the Green Party.

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  12. OneTrack (3,107 comments) says:

    “in his house made from hand cut non treated renewable timber and ”

    I hope he paid for the Kyoto credits for his timber……

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  13. notrotsky (84 comments) says:

    i’ve got some brilliant Labour policy for you.. apparently the flu is good for you….. morons.

    http://thestandard.org.nz/open-mike-18022014/#comment-775159

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  14. burt (8,271 comments) says:

    Psycho Milt

    Perhaps it was this chap who came up the river in a cabbage boat – he seems to imagine that thermal power plants would be easy to consent under a government that included the Green Party.

    That’s a very valid point. I think there would be no consents for anything once The Green’s are in power and EVERYTHING is moved to the glorious monopoly state provider model.

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  15. flash2846 (287 comments) says:

    They won’t care if their policy is flawed; they grabbed the headlines as usual knowing full well there are a bunch of thick headed losers who will swallow anything the left has to offer. These thickos’ amount to over 35% of the voting public; the ones who really shouldn’t be voting.

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  16. wreck1080 (3,917 comments) says:

    oh if gareth morgan is against it, i don’t know what to think now.

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  17. deadrightkev (469 comments) says:

    Gareth seems to think that charging the power companies for use of water is the answer. It would be straight through to the taxpayer plus a margin so everyone, including the poor, would get thrashed again.

    I would be in favour if the distortions of the ETS and all other state involvement was removed. Sell all power companies off to separate operators, charge them for water and watch real competition.

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  18. lolitasbrother (696 comments) says:

    A scary thing that I read that in the survey 49% of people “trust” Russel Norman,
    and about the same number “like” him.
    He was second to the Prime Minister in ratings of Trust and Like .
    There is a lot of work to do so our Country will not slide down .

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  19. Akld Commercial Lawyer (165 comments) says:

    Its a big fat lie. Always was – and now the Labour Finance spokesman seems to be MIA. Instead, you will note that the only Labour person speaking to any part of it is the newly-minted energy spokesman – he spoke knowledgably about Syria earlier this week. Is he just in holding pattern while he seeks another UN gig? His comments were, again, a wafer thin collection of slogans – and the teenagers in my household, some of whom get a vote this year, were much quicker out of the blocks than I to point to the obvious holes. Price rises might just be an indication that the cost of marginal generation is rising – but never mind if you are prepared to think that you can just regulate. Another govt tried that when I had just reached voting age and our generation paid for those mistakes for a long time.

    And the trouble with continually spouting this sort of nonsense or trying to pretend that current generation solar installations are anything more than a sop to well-heeled families seeking to enhance their green credentials (and the odd one who is financially illiterate) is that undermines the confidence of anyone who might have to deal with them. This does not give the business community, officials, trading partners and a host of others any confidence that this is a credible policy or that its proponents are a credible opposition who might be fit to govern (one day).

    We need a better opposition.

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  20. lolitasbrother (696 comments) says:

    Akld Commercial Lawyer (136 comments) says: February 20th, 2014 at 7:50 pm

    quote
    this does not give the business community, officials, trading partners and a host of others any confidence that this is a credible policy or that its proponents are a credible opposition who might be fit to govern (one day).
    unquote

    not govern one day, govern never green, do not waste our currency you dog Norman

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  21. s.russell (1,642 comments) says:

    Labour/Green policies are created on the back of envelopes with the purpose of generating good sound bites.
    Whether they actually make sense, or do anyone any good, seems to be irrelevant.

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  22. Ben Dover (526 comments) says:

    25% of the State of Victoria Australia Power generation is under threat TODAY
    this is an area with an almost equivalent population of NZ

    a grass fire has started a COAL fire near a mine

    Nearly every Fire fighting appliance in Victoria is working in it

    it has been burning for weeks now

    Appliances from NSW are coming down to assist
    it is a MAJOR

    http://www.abc.net.au/news/2014-02-18/experts-brought-in-to-examine-hazelwood-coal-mine/5267534

    http://www.skynews.com.au/topstories/article.aspx?id=950847

    The Grid is Vulnerable? Coal is tricky
    unplanned events happen Earthquakes Tsunamis?

    Hydro can be affected by Earthquakes if they happen in the right place at the right time
    and are the Right size

    a basic run of the mill for Victoria “Grass Fire” did this?

    What do you think this will do to Electricity prices?

    Solar is infrastructure and an extension of “THE GRID”

    It is prudent to diversify your power generation if you can?
    and not put all your eggs in one FUKISHIMA basket case

    When the Coal is gone or un usable for whatever reason like Pike River
    what then?

    Renewables are Preferable

    Hybrid Solar on or off grid sounds better every day

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  23. Ben Dover (526 comments) says:

    Where is NZs

    Solar Research Facility?

    http://www.dkasolarcentre.com.au/

    and no they don’t just work in the desert

    But where is it?

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  24. Scott1 (552 comments) says:

    Not all policies will lead directly to all your other goals, it would not be too hard to point out similar conflicts in other parties policies, so this is not a big surprise.

    But it does point out that social welfare objectives (e.g. uplifting the poor) generally speaking conflict with environmental goals. And when push comes to shove I guess that the green party is a socialist party over a green party.

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  25. Ben Dover (526 comments) says:

    For over 27 years, the Sakura Solar Energy
    Center Japan has been the site of a 43kW
    Kyocera Grid-tie System. This system, installed
    in 1984, consists of more than 1000
    modules exposed to well over 45,000 hours
    of solar irradiation. Research has shown that
    after 25 years, these panels have shown a
    degradation of just 9.6%, compared to an
    industry standard of 20%.

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  26. Ben Dover (526 comments) says:

    COAL COAL GIVE ME COAL

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  27. Ben Dover (526 comments) says:

    What is rather Hilarious is the economic scrutiny that will have to be applied
    to the economic policy of the COAL Fire in Victoria.

    Someone apparently though it was economic to sell all the Safety and Fire Fighting Equipment
    despite Union objections.

    But like the PIke River DISASTER there will have to be an Royal commission “if” they put it out
    to understand what went wrong and how

    Good ole economics like Statistics and Coal you can cook with them?

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