The recent OECD report conducting an autopsy on the economy here in Aotearoa came back with huge concerns and transformative suggestions going forward. And while some, such as the suggestion to raise the age of superannuation, have been taken on board by the leading National Party, others, like a renewable energy transition, have been poo-pooed.
Current energy policy discussions in New Zealand have focused on liquid natural gas, also known as LNG, which needs to be stored in special conditions. The government is moving forward with plans to spend over a billion dollars on a terminal specially designed to import LNG into the country and fund it with a tax on electricity. But buying natural gas is no simple endeavour. Along with petrol, LNG prices are spiking at the moment, and standard practice is to set up to buy a regular contracted amount, which, due to limited storage conditions, may have to be used or risk costing us more.
To understand the ins and outs of the OECD report on energy policy, we got Emeritus Professor of Economics and former director of the Energy Centre, Basil Sharp, to sit down with Host Manny in the studio to share his concerns with LNG and his ideas to on how to reform the electricity market.