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131 posts

Master Geek
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Reply # 2189066 28-Feb-2019 20:19
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So flick have updated their Christchurch/Orion network charges - It's interesting the way that they have done it which is to turn the Freestyle network charges into more of a Fixie charge - smoothing out the Orion Peak charges across the entire year. 

 

Although this might work for some its a bit of a shame as Orion have these higher charges at this time to discourage use at peak load times (which is the same as they do for their peak load which is repackaged by Flick at $0.03 across the year) for people with battery's this is a big step back as its a lot harder to load shift for an entire day for a smaller gain, than it is to load shift for only a few hours at night and morning to get a a good bang for your buck and cheaper rates the rest of the time. 

 

Looks like Flick is really trying to move away from the network straight passthrough to more of a fixie model, (maybe a bit harsh comment, but certainty true for Christchurch) 


131 posts

Master Geek
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  Reply # 2203386 22-Mar-2019 14:16
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Anyone with some inside knowledge know why the spot prices are quite high?

 

We seem to be burning a lot of coal and diesel at the moment, are there still restrictions on Natural Gas or is this more the lakes are low? it must be hurting some of the hedging company's which is bound to start to push up costs for some of the non generating retailers when they next buy hedges. 


 
 
 
 


168 posts

Master Geek
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  Reply # 2203595 22-Mar-2019 19:42
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This article should give some insight.

 

 

 

Where to from here for NZ electricity? - Stuart Innes

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Uber Geek
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  Reply # 2203708 23-Mar-2019 01:47
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pchs:

Anyone with some inside knowledge know why the spot prices are quite high?


We seem to be burning a lot of coal and diesel at the moment, are there still restrictions on Natural Gas or is this more the lakes are low? it must be hurting some of the hedging company's which is bound to start to push up costs for some of the non generating retailers when they next buy hedges. 



In short, low lake levels. They are getting very close to breaching the 1% risk line on the Transpower hydro risk curves. You have continuing hot and dry weather adding to aircon and irrigation demand. And an ever shrinking window where rain is needed to fill the lakes before winter. If that rain is too late, it will fall as snow instead. And be unavailable for winter power generation.

The gentailers will also be raising their prices. As if they dont, shareholders and Management will start asking. “Why are we selling power to residential customers, at low margins compared to selling it into the wholesale market? Especially as the overheads to sell it retail are also alot higher than selling it wholesale”.





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  Reply # 2203710 23-Mar-2019 02:17
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voy1d:

This article should give some insight.


 


Where to from here for NZ electricity? - Stuart Innes


To add to this article:

Announcement of min heating standards for rental properties, which in most cases can only be met by installing heatpumps. Plus new heatpump installs that were going to happen regardless. Even if only 25% of heatpumps will get used for summer aircon, that is still lots of extra demand. While some of those heatpumps will replace gas heaters and woodburners. So there is still likely to be an overall increase in winter power demand also. Especially as tenants would be encouraged to actually keep their houses warm over winter, due to a better cost / benefit ratio for them to switch on the heatpump instead of an electric resistance heater.

More EVs creating completely new demand.

The oil drilling ban pushing up gas prices. Which in turn increases the operating costs of the gas fired power stations. And eventually, they will all have to close down when NZ runs out of gas. Sure, some might be able to be converted to coal. But how likely is it that the Green party would approve that? That is approx 1300MW of capacity that will need to be built. And that is not including the Huntly coal generators or the various small gas cogeneration units.

The money to build enough renewable generation has to come from somewhere. Both to replace fossil fuel generation and to cater to increasing demand.





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