ERANZ Welcomes The Government’s GPS To The Electricity Authority

Electricity Retailers’ Association New Zealand (ERANZ) media release, 11 October 2024

The Electricity Retailers’ Association of New Zealand (ERANZ) strongly supports the Government’s Government Policy Statement (GPS) to the Electricity Authority and wholesale market participants, highlighting the importance of a market-based approach to our energy sector.

According to ERANZ Chief Executive Bridget Abernethy, New Zealand should be proud of its predominantly renewable and internationally affordable world-class electricity system.

“We also welcome the acknowledgement that volatility in wholesale electricity prices is an inevitable part of our transitioning to a more renewable weather dependent electricity market. It is a sign of the success of bringing renewables online, not a sign of a market failure.

“We agree that the increased intermittency of our electricity system will require a more innovative approach to security of supply and in particular the use of batteries and demand side response arrangements where residential and industrial consumers are rewarded for using less electricity at peak times or during dry winters. ERANZ looks forward to seeing more collaboration as the market evolves and explores all opportunities for fresh solution focused thinking.

“New Zealanders rely on electricity infrastructure that is working. But our electricity infrastructure requires investment to ensure it is prepared for the growth in demand we know is coming as we continue electrifying our economy and reducing emissions.”

Abernethy says ERANZ members are already stepping up and committing to multi-billion dollars in investments to strengthen generation portfolios without the need for government subsidies.

“ERANZ members (Contact Energy, Genesis Energy, Manawa Energy, Mercury, Meridian Energy, and Nova Energy) have committed to huge investment in new renewable generation facilities, grid-scale batteries, and modern flexible contracts for industrial customers, including the Tiwai Point Aluminium Smelter.”

ERANZ applauds the Government’s recent actions to enhance resource consenting processes, with fast-track initiatives representing positive steps forward. The GPS strategically positions New Zealand for a modern, flexible, and technology-driven energy market.

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