Greens energy policy would leave New Zealand running out of power

“The Greens' energy policy ignores reality and would leave everyday Kiwis poorer,” says ACT Energy spokesperson Simon Court.

“We've seen exactly what happens when the Greens get a say over energy. In 2018, with Labour and New Zealand First, they banned oil and gas exploration. That reckless decision wrecked confidence in the sector and left everyday New Zealanders paying high power prices while our energy security went backwards.

“The Infrastructure Commission's own work, which the Greens themselves cite, shows that gas availability keeps power prices lower for households. Yet the Greens want to double down on the very thinking that got us into this mess.

“Now they're back with a $3 billion spending spree. The centrepiece is a brand-new state-owned power company called 'Kiwipower,' alongside zero-interest loans for solar panels and batteries. When New Zealand needs more abundance in the sector, all the Greens can offer is more government and more spending.

“New Zealand has tried relying on state-owned electricity before. It didn't deliver the investment needed to keep up with demand, and taxpayers were left carrying the risk.

“Renewables alone cannot keep the system reliable. That's why New Zealand needs firming generation like gas and thermal to keep the lights on when the wind isn’t blowing, the sun isn’t shining and the hydro lakes are low.

“The Greens acknowledge this. But instead of encouraging investment in reliable generation, they want to redistribute existing firming capacity between retailers. This simply shifts existing capacity around, making investors think twice before committing capital to New Zealand while not building a single new power station.

"You don't solve an electricity shortage by scaring away the people willing to build the generation.

“The Greens also want taxpayers to fund zero-interest loans for rooftop solar and batteries. Many major banks already offer zero-interest or low-interest loans for solar installations. The finance is already available. They're proposing an expensive taxpayer subsidy for a problem the private sector has already solved.

“Affordable electricity comes from making it easier to build. Gas, hydro, geothermal, wind and solar all have a role to play in a reliable electricity system.

“This Government has already taken steps in the right direction by repealing the oil and gas ban, establishing the Gas Security Fund, and reforming the Resource Management Act so projects can actually be built.

“The Greens talk about lowering power bills, but their own policies have helped create today's energy shortages.

“If the Greens get their way, New Zealand will end up running out of power. There will be less investment, and it's everyday Kiwis who will pay the price through higher power bills.

“ACT has a plan to unlock New Zealand's potential, and we will announce our energy policy in due course."