Ruapehu District Council has raised concerns about the soaring power prices impacting the region and employers to the district. But instead of merely complaining, why not take action? The council has the resources at its disposal and the potential to turn a problem into a profitable solution while stabilizing the district's grid and even supporting New Zealand’s national grid.
One particular area of interest is Teitei Drive in Ohakune, a location that has already been the center of controversy due to a Kāinga Ora development. Interestingly, this development was meant to provide housing for WPI staff—the same company now teetering on the brink due to skyrocketing power costs.
Here’s the proposition: The council could engage in meaningful consultation with the community about the design and placement of a solar generation facility on Teitei Drive. By partnering with a corporate entity, the council could either lease the land or take a share of the earnings from the solar power generated. This initiative could create a new, ongoing revenue stream, helping to plug the continuous budget gaps that have led to repeated rate increases.
Homeowners who have invested in solar are seeing significant savings, especially during periods of high generation costs. Not only do they power their own homes, but they also benefit from wholesale export prices. Imagine the benefits if the district as a whole could harness the sun’s power.
Tiwai Point Scenario Again!?!?
New Zealand has a history of propping up private companies, often at the expense of taxpayers and local communities. The situation at Tiwai Point smelter is a prime example—decades of subsidized power prices have burdened the rest of the country. Previous government bailouts were so costly that it would have been cheaper to pay staff to sit idle or fund their education and upskilling for new job opportunities.
The Ruapehu District Council has a chance to lead by example. Instead of relying on outdated methods and complaining about power prices, they can take proactive steps to secure a sustainable and profitable future for the district. The opportunity is there—it's time to seize it and I welcome the council to reach out to ORS and discuss possible oppotunities.
Government Intervention
If the government is to intervene, they should take a page from Australia’s energy playbook and subsidize solar installations for homeowners through a rebate program. However, they should learn from Australia’s experience and cap installations by region to avoid potential pitfalls.
In some Australian states, the abundance of solar energy has led to a surprising phenomenon: power companies are actually paying consumers to use electricity during peak generation periods. Yes, that’s right—the power companies will pay you to turn on your stove, dryer, heating, or other appliances because they have an overcapacity of power!
This level of solar success is something New Zealand could strive for, but with careful planning to ensure that overcapacity doesn’t become a widespread issue. By following Australia’s example and implementing regional caps, New Zealand could maximize the benefits of solar power while maintaining a balanced and sustainable energy grid.
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