Otago Daily Times

Jump in burning coal for electricit­y

- MICHAEL NEILSON

WELLINGTON: New Zealand burnt more coal for electricit­y production in the first quarter of this year than any quarter in nearly a decade.

The revelation came the day after a ‘‘transforma­tional’’ climate change report that slated successive government­s for inaction on reducing greenhouse gas emissions that continue to rise.

The latest New Zealand Energy Quarterly for the period JanuaryMar­ch 2021, released yesterday, showed the amount of coal burnt for electricit­y production had more than doubled from the previous quarter to nearly 430,000 tonnes.

This was the highest burnt in a quarter since 2012, and helped bring the overall share of renewable energy down to 79%, three percentage points lower than the correspond­ing time last year.

Ministry of Business, Innovation and Employment markets, evidence and insights manager Daniel Griffiths said driving this shift was low hydro lake storage levels and less wind.

With belownorma­l rainfall, hydro generation was down 9% on the back of lower hydro lake storage levels and generators preparing for a drier than usual winter.

This, coupled with a tight gas supply which meant an 18% drop in the past year, resulted in higher coal imports to meet demand for generation.

Importatio­n of coal was 0.3 million tonnes this quarter (up 25% since March 2020, but down 21% since December 2020).

Coal imports for 2020 were 1.08 million tonnes, and 798,723 tonnes of that was used to generate electricit­y.

Industrial electricit­y costs rose sharply, increasing by 17% since the year ended March 2020.

Over the same period, residentia­l electricit­y costs rose only 0.9%.

‘‘Coalfired generation was used to help make up the shortfall from other sources with a third Rankine unit at Huntly brought online during the period which contribute­d to a near doubling of coalfired generation for the quarter compared to the same period a year earlier,’’ Mr Griffith said.

‘‘The share of electricit­y generated by coal rose to just over 10%.

‘‘Nationally, demand for electricit­y fell 3% on the same quarter in 2020 with a large decline in demand from the pulp, paper and printing sector.’’

Act New Zealand leader David Seymour said the figures ‘‘make a mockery’’ of the Climate Change Commission’s dream of a ‘‘painless transition’’ from fossil fuels.

‘‘In the real world, lake levels are low, gas production is down, the sun doesn’t shine at night, we are dependent on coal, and power prices are going up.

‘‘Right now, Kiwi industry faces shutdown because of high power prices.

‘‘When contracts are renewed, those prices will filter through the retail market, and people will see how expensive the Climate Change Commission’s hot air really is.’’

The commission’s report warned New Zealand was off track to meet its internatio­nal obligation­s to reduce emissions, and laid out an ambitious path to rein them in and transition to a clean energy economy, including substantia­lly increasing renewable sources.

At a select committee meeting yesterday, Energy Minister Megan Woods said in light of New Zealand’s climate change commitment­s, burning coal at such levels was ‘‘unsustaina­ble’’.

The electricit­y system was designed to shift to fossil fuels as backup in times of low renewable sources, such as low hydro dams, Dr Woods said.

Gas, which produced less emissions, was the priority.

However, due to supply issues coal was at present being burnt at higher rates.

‘‘The system is doing exactly what it is set up to do but I don’t think that is acceptable.’’

Dr Woods said this situation highlighte­d the urgency to develop a backup energy battery using renewable energy, such as the proposed Lake Onslow pumped hydro storage dam.

The multibilli­ondollar scheme, announced last year, would turn the Central Otago basin into a 5000GW rechargeab­le battery to power the country during periods of little rainfall or wind, ending its dependence on gas and coal generation.

Water would be pumped up into the dam during times of excess energy, such as when hydro dams need to be spilled.

Dr Woods said planning work was continuing and an interim update was expected this year.

There was good progress on feasibilit­y, including conducting Lidar (3D laser) imaging of the site, and engagement with landowners and runanga, she said. —

❛ The system is doing exactly what it is set up to do but I don’t think that is acceptable Energy Minister Megan Woods

 ?? PHOTO: THE NEW ZEALAND HERALD ?? At work . . . A digger moves piles of coal.
PHOTO: THE NEW ZEALAND HERALD At work . . . A digger moves piles of coal.

Newspapers in English

Newspapers from New Zealand