INNOVATION
Abundant Energy
We need affordable, clean and abundant power. It's time for a long-term energy strategy.
We have world-leading solar, wind, hydro and geothermal resources — but we still spend over $20 billion a year buying fossil fuels. That shows up in ever-increasing power bills, idled machinery in Kiwi businesses and geopolitical risk that we just can't afford anymore.
We can do better.
Abundant Energy is a circuit breaker for an energy system that has been underfunded for decades. This package of large scale investment, market reform and community & household level electrification will deliver clean, affordable energy — keeping our homes warm and our businesses running.
Go electric at home and you're $3,200 a year better off. Solar on the roof, a car you charge in the driveway, a heat pump you can afford to leave on.
THREE PILLARS FOR AN ABUNDANT ENERGY FUTURE
Pillar 1
Boost renewable generation
A future of reduced carbon emissions and thriving high-tech industries means we need to grow our renewable generation capacity. To do this Opportunity will:
- secure cross-party agreement to a 30GW total capacity target for 2050
- launch a capacity investment scheme (like Australia has) to unlock capital
- support industries to electrify their processes funded by future emissions trading scheme revenue
Pillar 2
Make the electricity market work for Kiwis
Bringing down electricity prices and growing our capacity will mean changing the way our market operates. To do this Opportunity will:
- ringfence Government profits from power generation for investment in the renewable future
- merge the five energy regulatory agencies into one
- consolidate management of the 29 energy distributors into no more than 8.
Pillar 3
Electrify houses, communities and businesses
The benefits of an electric future need to reach all of New Zealand. To do this Opportunity will:
- issue low-interest loans for household electrification through a Ratepayer Assistance Scheme
- fund community-run energy projects
- insulate Kiwi homes
- electrify public transport systems.
The wind and the sunlight are already here, and nobody sends us an invoice for them.
Read our full policy paper
Download PDFFrequently Asked Questions
How much will Abundant Energy cost?
The operational expenditure for implementing this plan will all come from the ringfenced dividend revenue from the Government's ownership stake in the gentailers; currently around $500 million annually. This will take this funding away from core crown revenue, so represents a direct cost that will need to be funded through other revenue sources; like the land value tax. A full breakdown of estimated costs is available in the full policy document.
What about grid stability?
The main source of grid stability in our proposal comes from overbuilding renewables; having more renewable capacity available than current grid needs. This means that variable renewable sources like wind and solar can be used ahead of hydro. Leaving water in the dams provides a reserve of highly responsive generation capacity. Additional geothermal and hydro capacity will add to this.
Distributed generation and storage at household and community level does not address broader "dry year" stability issues, but builds overall grid resilience and could enable some peak shifting. Grid-scale storage further supports peak-shifting. Thermal generation at Huntly will still be available as a backup option; but it will be used in true emergency scenarios, rather than as a routine part of the generation mix.
Will you separate the gentailers?
No. Structural separation is a lengthy and costly solution, and doesn't address the core issues in the electricity sector. The fundamental problem is the perverse structural incentives that give rise to underinvestment in generation across the board. The gentailers could undoubtedly do better, but they're reasonably competitive with each other at both the retail and generation ends of the market.
Do you support the current Government's commitment to build a LNG import terminal?
No. This locks us in to long-term reliance on imported LNG. In addition to the environmental impacts, this puts us at the mercy of potentially volatile international prices.
