37 Comments
Sep 19Liked by Bernard Hickey

Hoorah for Entrust and consumers and the planet. Entrust long overdue for an overhaul.

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Would love to see this opened up so I can share with friends in Auckland who might not understand the importance of this vote

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author

Already fully open.

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Yes. Awesome news. This could be a real game changer in the face of a government that even though there policy says they want it are not entering the conversation or changing up their approach. Where are you Simeon

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Check out Simeon's response, or lack of it, on Q&A when Jack Tame proposed the rolling out of rooftop solar instead of the LNG strategy. Complete dismissal of the idea that distributed generation would be advantageous in boosting NZ's generation capacity.

https://youtu.be/P7GCcU61UyY

There is more than just ignorance at play there. I would suggest that Simeon is a paid for asset of the fossil fuel industry.

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This I don’t get. What is this government getting from cozying up to corporates at the cost of so many in the nation. It seems to me a real Judas attitude. A few schekels for a massive amount of power. Health, with the Phillip Morris, big oil and roading no doubt via Fultons. Surely the national party coffers getting a few million does not equate to the complete and I have to say anti democratic stance they seem to be taking on lots of major issues.

Can The Soinoff do what they’re very good at and get behind the trending for this government. I’m trying not to be a conspiracy theorist here but too many bells are ringing in ways no other government in my mEmory has done.

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Sep 20Liked by Bernard Hickey

And the shortsightedness of their policies is breathtaking.

I'm privy to information from within the NZ gas industry so Simeon's approach is especially baffling.

The LNG 'solution' will result in electricity prices staying high, and increasingly so, as it will expose NZ to volatile international LNG prices which would then become the peak demand benchmark for wholesale electricity prices over and above the present coal fueled price. It is guaranteed to burn both industrial and domestic consumers. Fortunately though the government supposedly expects the generators to fund the development of an LNG terminal but there is considerable resistance to this from the big generators who assumedly can see this for the high risk short sighted investment that it is so that is unlikely to eventuate.

Additionally the whole carbon capture and storage (CCS) strategy which is being touted by Simeon as the solution to gas emissions is on very shakey technical ground with its implementation being difficult and far more expensive (per tonne of carbon) that he is quoting. If the cost of sequesting carbon greatly exceeds its ETS price then CCS just won't fly economically.

The other apparent hypocrisy in this whole scenario is that our government is justifying our high and increasing agricultural methane emissions by way of some magical gut biology modifying feeds or supplements but in the next breath they're proposing to import boatloads of methane in the form of LNG. There are just too many things that don't add up here and there is obviously either far more going on behind the scenes, or these ministers are completely ignorant of the longer term effects of these strategies, or both.

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Thanks Tony. Hearing you have inside knowledge. 1. That needs to be shared with them that act. 2. That small bit of insight makes sense for why the plan for gas won’t work.

I’ve just listened to Simeon and Tame. What wasn’t spoken of in the solar too and fro was the use of battery storage when it’s night. Solar panels become a whole range of positives when the batteries are part of the thinking. Jobs for hundreds, possibly thousands of NZers. The potential to meet 2030 carbon goals. The shifting from indirect to direct enduser attachment to solar. Ie. solar on my roof I can use directly for my needs. Gets rid of a heap of infrastructural must haves and lowers the cost of use for consumers. Electric cars can run off the sun not coal through the gentailers.

I’m missing something surely. But what???

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It's worth considering that the Feed In Tariff (FIT) prices that low domestic (solar) generators are paid is not only a disincentive to PV investment but for those that can make the economic model work and so then invest in rooftop solar it incentivises them to be as selfish as possible with their generated electricity in order to gain the maximum return from their system. The market as it is currently structured induces people to self consume (including battery or EV charging) as this results in the best economic result by offsetting electricity that otherwise would be imported so its effective value to the solar owner is that of full retail price (including GST).

What is required IMO is an increase in the FIT paid for distributed generation. This would both serve as an incentive for widespread solar installations and ensure that the increase in generation that results is more likely to find its way onto the grid rather than being squirreled away to the benefit of just a few. Sure there will still be those that can justify the extra expense of home batteries but the impetus for this add on will be much reduced if the price of buying electricity was closer to that received from its export onto the grid.

And so far as EVs are concerned they are increasingly being offered with bidirectional charging functionality which allows them to serve as a import/export buffer which benefits not only their owner but also the grid by way of their load buffering capacity.

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Yep. I get that. There is a group. Not just Patrick Reynolds that are trying to model a shared solar scheme that can feed to selected others that might not be able to afford the capital costs of installation. Isn’t there also an argument for the government to invest in subsidising solar installation to offset the load on the grid and create dependable and expandable infrastructure.

I think Bernard through Saul Griffiths has covered this as an option.

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I agree that it is highly unusual that an energy minister would not have been briefed on the solar and battery tech of various types which exist to provide energy when the sun is not shining. Jack explained the hydro one very clearly! I can also confirm that our house still has power from our battery when it is dark. In winter it we still need a bit from the grid but if everyone had rooftop the grid demand would be waaay down

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It’s in published National party policy. They must investigate surely because the party have asked they do even if they refer to no other democratic benchmarks surely the must refer to this one.

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Sep 19Liked by Bernard Hickey

I embraced the concept of self-sufficiency in energy about three years ago. We have 27 panels on our roof and we spend approximately zero on electricity per annum. There are a few months during winter when we draw from the grid but for the rest of the year we contribute to the grid and make the thieving swine who distribute electricity richer.

The government has done absolutely NOTHING to encourage the installation of rooftop generation. Why? GST. Treasury collect 15% on all electricity sold. The NZ Government is not alone in its contrived energy incompetence. Nobody looks at the big picture. If everyone in our street co-operated in a community project for energy self-sufficiency we could afford really efficient battery storage that would cost each of us a fraction of the rip-off prices we have to pay for Tesla batteries A neighbour asked me what return on investment we are getting on our solar cells. He was in the process of replacing all his carpets. I asked him what return he was getting on that. He claimed that you couldn’t make such a comparison.

Bruce Rogan.

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Sep 20Liked by Bernard Hickey

Your carpet comment is what I always say to folk who ask about return.on investment. I estimate monthly bill is down by 3rd.

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Also worth asking how many months during summer their electricity account is in credit. In our case that was upwards of 5 months last summer, followed by <$100/month through winter despite home (solar) charging of 2 EVs in a rural home with pumped water supply and 2x 700L chest freezers.

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I am really appreciating this commentary and taking note of The Price is Wrong book you recommended further down the thread, Tony. The recent energy price spikes have made my husband and I investigate solar seriously, and as a result will have roof-top solar installed later this year. No battery, but we have intentions of a plug-in hybrid or EV in our future. Bernard's interview with Saul Griffiths and Saul's comments about how roof-top solar could be part of our overall infrastructure, teeing up with our hydro as a "battery" made me go "come on, let's do this". That's backed up by the thoughts outlined here.

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I agree Maisie, really interesting to hear real life stories of solar too. It needs to move up my list but the battery cost is the kicker (although getting cheaper).

I think this movement needs to be across all community lines companies. WEL in the Hamilton area could do with a shake up like this.

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Patrick claims that investment in solar and batteries is akin to paying forward your electricity for 30 years but payback periods for domestic installations is far less than that. We have a $30K PV installation that has returned ~$3,400 in its first 12 months in terms of self consumption based on TOU rates in real time, and export to Octopus), so we are expecting <9 years before it pays for itself, and this period reduces with each power price rise. We don't have battery storage as our usage model makes a battery non-viable but we do have 2 EVs with one being a Leaf which we intend to use in a V2H capacity as this technology rolls out in NZ.

The other thing of note in Patrick's interview is that Australia does have excess solar generation issues but it is worth keeping in mind that their base load generation is primarily coal thermal which cannot be 'turned on and off' readily so they are forced to moderate generation capacity by getting solar to fulfill this function. We in NZ however are blessed with huge hydro storage capacity which not only can be brought online or shut off far more quickly than coal but also as Patrick states hydro has great functionality as a 'battery' to offset intermittency of solar and wind generation.

For anyone interested in drilling into the market forces in play regarding transitioning, or not, to renewable electricity generation from fossil fueled methods the book The Price Is Wrong by Brett Christophers is right on the button in this conversation.

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Thank you guys for literally shedding light on Entrust. I had no idea what they do!

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I did know what Patrick says about Entrust & always vote be so good to unseat the current group of C&R.

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And speaking of Porirua, Ngati Toa have (the largest in NZ) Community Housing Provider Te Āhuru Mōwai, which has done a deal with SolarZero for solar and batteries in some of their houses. One story told to me: a tenant came in really upset because their power bill had ballooned since the solar was installed. They were afraid they couldn't pay the bill and would lose their home. They were reading the bill 'upside down' as the amount was a payment TO them, not from them.

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It would be good to get a fair price for solat generation. Currently we get 8.5c to generate & pay 27c to buy.

The base daily rate increased ftom the 30c low use rate & is now 90c & rising. At this rate we have to genrrate more than 10kw to pay the daily charge. Our use is less than 5kw per day. We're giving away our power (!)to use the grid as a battery. Investigating returning to off grid with lower priced batteries.

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Ecotricity pay 12 cents

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Shared thanks. It’s a belter - meaningful change 🥳

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I can feel some optimism coming on. There is no sign that important changes will happen courtesy of politicians. Though it’s far from a perfect solution Entrust is to be congratulated. One of the problems with NZ’s energy grid is the amount (up to 30%) that is lost in distribution. It makes a lot of sense to use the energy where it’s generated. Fossil fuels will not be with us much longer. The sun is going to keep shining for some time yet. (PS we have 20 panels, batteries, and an ev to charge. Very happy with the system.)

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Yes, yes, yes. Imagine if the govt negotiated a deal with China for (say) a million rooftop solar units and batteries, and sold them on at cost to households and business at best cost (just like Pharmac does).

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Patrick another good NZ sole. Wish his ideas were down our way. Thanks for this.

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Thanks to Patrick and his team. A true visionary and great Nz sole. Look forward to the day neighbourhoods have these solar banks.

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I'm totally in favour of solar but does Auckland get as much sun as Victoria and South Australia?

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NZ gets more than enough sunlight for solar to be viable. Our melanoma rates are up there with Australia's and in our own experience our Taranaki located 8.2kW PV installation has generated just over 13MWh in the last 12 months.

It's also worth noting that sunlight levels aren't equivalent to temperature and high temperature actually reduces output from PV due to increased electrical resistance. The sweet spot is around 20 degrees C.

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I'm excited by this tho shocked the last time the Entrust board was elected with less than 10% of the vote - it's such an obvious plan with so many PROs- just wondering what those opposed to it, including possibly this government, claim are the CONs - and how transparent are their claims? Or is it just another case of who's cozying up to who?

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Even Wellington has enough sunlight hours - tho can see why Wellington might be out of the loop if the sweet spot for entry into the club is 20C

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so great to see a challenge to the C+R Entrust model

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