Jump in burning coal for electricity
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