The Big Q1 2020 Futures Spread

The HVDC link will be operating with only one pole (one half) in service for most of the first quarter of 2020, to allow essential maintenance to be carried out.  When this was first announced back in December 2017, futures prices barley moved, but they now show an expectation of a price difference between upper north and mid-south islands in the vicinity of $55/MWh.  What’s changed?

Well done OMV!

The gas market is opaque relative to the electricity market, but recent major gas field outages have prompted moves to improve transparency.  One of the first improvements is an initiative by the gas industry regulator, the Gas Industry Company, which allows gas producers to post notifi

Are Higher Electricity Prices Here to Stay?

Spot prices surged late last year when there was a prolonged, unplanned outage at the Pohokura gas field offshore Taranaki.  But they haven’t come back down to where they were prior to the gas outages.  In this post we look at the reasons why and ask the question on everyone’s mind – will they remain high?

The three most important issues for the 2020s - #3, Extreme Renewables

This is the third in a series of three posts on what I see as the most important issues for the electricity market for the 2020s and beyond.  The first issue was woeful lack of disclosure in the gas market, and the second issue was the ineffectiveness of the electricity hedge market.  This third and final issue is on the challenge of moving toward extremely high levels of renewables in our electricity supply.

The Clean Car Discount

The government released a consultation paper yesterday on the Clean Car Standard and Clean Car Discount.  The Clean Car Standard would require importers of new and used vehicles to lower the average emissions of the vehicles they bring into the country.  The Clean Car Discount increases the cost of vehicles that are high emitters and reduces the cost of low emitters. 

The three most important issues for the 2020s - #2, The Hedge Market

This is the second in a series of three posts on what I see as the most important issues for the electricity market for the 2020s.  The first issue was disclosure in the gas market, which has as much impact on electricity as it has on gas, and is woefully inadequate.  The second issue, and the topic of this post, is the electricity hedge market:  how it is not working for new retailers and how it might be fixed.

The three most important issues for the 2020s - #1, Gas Disclosure

This is the first in a series of three posts on what I see as the most important issues for the electricity market, and by association the gas market, for the 2020s.  This first post is actually a submission to the Gas Indsutry Company's recent consultation on information disclosure in the wholesale gas market.  The GIC documents and all subsmissions can be found at 

The Whys and Wherefores of High Spot Prices

We’ve been asked many times recently why spot prices are so high, so this has prompted me to finally put fingers to keyboard for another blog.  The spot prices are a function of low hydro storage, restricted fuel supplies, and plant outages.

By Greg Sise, 24 October 2018

Price Spikes Hit the Big Time

Since 23rd May we’ve seen big price spikes, to over $1,000/MWh at Otahuhu for example, consistently during the peak demand at the end of the day.  In this post we take a brief look at what’s causing these spikes.

By Greg Sise, 31 May 2018

End of an Era in Exploration

It’s ironic that this month’s announcement that there will be no new offshore oil and gas exploration permits issued in New Zealand was titled “Planning for the future…”. This announcement was totally out of the blue and if there is a “plan” somewhere, it appears that no one outside of government knows what it is.