Aotearoa is currently suffering from one of its regular electricity crises, thanks to systematic underinvestment by the power cartel. Meanwhile, in Europe, electricity prices have gone negative:
European power markets are experiencing a notable shift as renewable energy sources, particularly wind and solar, become a larger part of the energy mix. On Wednesday, power prices in several European markets, including Germany, dipped below zero due to a surge in green electricity production.Why? Because energy companies have invested in renewable generation, driving expensive fossil generation out of the market and producing an oversupply. And its a similar story in California.In Germany, wind generation is expected to hit 22.7 gigawatts, the highest level in four months. This spike in renewable output has overwhelmed the grid, leading to negative prices during six separate hours on Tuesday, as recorded by Epex Spot SE. Negative pricing occurs when there is more electricity supply than demand, a scenario becoming more frequent as Europe continues its aggressive push toward renewable energy.
This is the power cartel's nightmare: free power! Which means no profits for them. And with more renewables and batteries being installed, its only going to get worse (though likely become merely very cheap, rather than negative).
So while NZ businesses are shutting down because power is too expensive, and National talking about expensive imported LNG as a "solution" (a "solution" which means a permanent rise in electricity prices for both industrial and residential users), think about the future we could have: a future where the government uses its control of the power cartel (or just a new SOE) to rapidly roll out solar panels and batteries to permanently lower power prices and bring cheap power to everyone. A future where it builds energy storage to end the dry year problem. A future where instead of shutting down, companies can use that power to make cheap, clean, goods. But there's no lobbyists for that future, and plenty of lobbyists for shortages and energy poverty. So we won't be getting it from National.
