The 2022 KrakenFlex Electricity Survey has revealed differing views on the best pathways for New Zealand’s renewable energy transition.
Most respondents are confident that the country will eventually reach its goal of 100 per cent renewable electricity generation – 29 per cent say by 2035 or earlier and 35 per cent say at some point between 2036 and 2050. But 36 per cent say it’s unlikely to ever be achieved.
Only 19 per cent believe the NZ Battery Project should recommend large-scale pumped hydro storage as the best option for securing New Zealand’s electricity supply; 26 per cent want a portfolio of solutions.
When asked which types of electricity generation should be prioritised for development over the next 10 to 20 years, more than a quarter of respondents opted for ‘None – let the market decide.’
Demand-side flexible and distributed energy response will be crucial to the energy transition – 44 per cent of respondents thought electricity distributors should be primarily responsible for these areas. But 32 per cent favoured a third-party aggregator who could direct these resources in an unbiased manner.
Challenging environment
When asked what the biggest decarbonisation hurdles facing the sector are, a third of respondents say incentives and signals are not strong enough, and more than a quarter say that regulatory settings must change.
About 37 per cent of respondents say the best action that the Government can take is removing regulatory barriers; 24 per cent want support for major industrials prioritised and another 24 per cent want electricity market reform; the remaining 15 per cent want more support for electrification of transport.
It’s widely agreed that difficult economic conditions are hindering progress. Most respondents report input cost increases higher than 10 per cent over the past year.
Businesses also say that finding the people they need is difficult. Nearly half say a shortage of skilled and experienced workers across all positions is their biggest labour market issue. Others nominate ageing workforces, the need to access new capabilities, or intra-industry competition for skills as key issues.
The Electricity Survey, now in its eleventh year, has become a key source of industry insights. The survey covers the electricity sector’s significant issues in 2022.
This year’s edition was assembled following an advisory panel discussion managed by industry expert John Hancock and including representatives from sponsor Octopus Energy, Evoegy, Powerco, Simply Energy, Northpower, Manawa Energy, Orion and MBIE.
Find out more by downloading the survey results.