Why should we act on an energy strategy now?

The climate crisis demands urgent action, and energy production causes two-thirds of global greenhouse gas emissions. Every year we delay transitioning to renewables, we lock in more fossil fuel infrastructure and higher emissions. Meanwhile, gentailers are paying record dividends to shareholders instead of investing in clean energy infrastructure. The technology exists now – what we need is the political will to implement it. Recent events like Cyclone Gabrielle showed how vulnerable our overly-centralised energy system is and further highlighted the need for careful planning. 

What’s wrong with our current electricity market system?

Unfortunately, New Zealand’s electricity market has been a tale of coal and corporate control. The system is designed to benefit large generators rather than consumers or the environment. Gentailer dividends act as a barrier to energy decarbonisation and lower prices because these companies prioritise shareholder returns over investment in clean energy infrastructure.

How do big power companies hold back the renewable energy transition?

The gentailers have a vested interest in maintaining the status quo because renewable energy generation is cheaper and competes directly with their ability to make money. Our broken spot-market system creates incentives for these companies to keep expensive fossil fuel generation running to inflate electricity prices. They also oppose communities generating their own power because the more homegrown energy people have access to, the less they buy from big generators. Learn more about how gentailers generate scarcity.

How “clean” is our electricity grid really?

Despite New Zealand’s reputation for clean energy, our electricity grid has remained largely the same since the 70s. Instead of investing in wind and solar, energy companies are still firing up coal for electricity production and underinvesting in renewables. The percentage of renewable energy share has stubbornly remained in the mid 80% since the 1970s. The gentailers (Genesis, Mercury, Meridian, Contact, and Trustpower) have financial incentives to keep expensive fossil fuel generation in the system because it keeps their profits high. Our Generating Scarcity reports show the market is rigged for corporate profit, not clean energy.

What does 350 Aotearoa want from our energy system?

We can’t wait for Aotearoa New Zealand to harness our abundant natural energy resources – wind, sun, and geothermal – to power our homes and industries with renewable energy. We’re calling for energy sovereignty: the right for communities to make their own decisions about energy generation and consumption. This means replacing a system dominated by big power companies with one where communities can generate and exercise control over their own clean, affordable energy.

What role should the government play in the energy transition?

The government must take an active leadership role through both policy and ownership. Since the government owns majority stakes in three of the five major electricity generators (Genesis, Mercury, and Meridian), it has direct power to drive change. We need policies that make decentralised, flexible energy systems attractive, not just possible. Our submission to MBIE’s Energy Strategy outlines specific steps the government should take, including getting energy production, transmission, distribution and pricing back under full public control by 2025.

What are Community Energy Projects and why are they important?

Community energy projects are energy activities directly controlled by or benefiting citizens and energy users. They include building local power generation, reducing energy usage, lowering costs, increasing resiliency, and creating systems for energy storage and sharing. These projects spread financial benefits more broadly, develop energy literacy, and engage community members in driving change. Thousands of New Zealanders are already calling for community energy. At a time when communities are increasingly being stripped of their power by the Government, community energy offers New Zealanders an opportunity to make decisions at a local level about how power is generated and shared.

What is energy sovereignty, and why does it matter?

Energy sovereignty is the right of individuals, communities, whānau and hāpu to make their own decisions about energy generation, distribution and consumption in ways appropriate to their circumstances. It means expanding public participation in the renewable energy transition, instead of leaving it inside corporate boardrooms. It means containing energy spending within local communities, while making them more resilient to energy shocks from extreme weather events.  Energy sovereignty ultimately ensures that power – both electrical and political – is no longer held by the same structures that have fuelled the climate crisis and perpetuated injustice.

How can we fund the renewable energy transition?

Rather than subsidising fossil fuel companies, it’s time to make polluters pay for renewable energy. Currently, hundreds of millions of dollars of corporate welfare are handed out in subsidies to polluters like Methanex, Fonterra and Rio Tinto. It’s time to make polluters pay their fair share – and instead redirect funds into community energy, through policies such as zero-interest loans for household solar and grant funding for Marae, schools, and community centres to establish homegrown energy schemes.

How will an energy strategy create jobs?

An energy strategy will drive investment into renewable projects like wind, solar, and community energy. This investment will create thousands of local jobs across Aotearoa and lower power prices for New Zealanders. Renewable energy projects generate more jobs than fossil fuels, from construction to ongoing maintenance – while community energy projects keep profits and employment local. A robust energy strategy should fund retraining, so that workers in fossil fuel industries can transition into secure, clean jobs that they can rely on for decades to come.

Isn’t solar energy just as bad as coal for the environment?

Absolutely not. While manufacturing solar panels does produce some emissions, solar energy is vastly better than coal over its lifetime. Solar panels produce zero emissions when generating electricity and typically pay back their manufacturing carbon debt within 1-4 years, then continue producing clean energy for 25+ years. Coal, on the other hand, produces emissions every single time it’s burned, not to mention the environmental damage from mining. Find out more here.

How can I get involved in the campaign?

There are many ways to support the transition to community-controlled renewable energy:

• Sign our petition calling for a long-term Energy Strategy Now
• Join our 350 Energy Campaign Team and help build the movement for energy democracy (email us 350@350.org.nz to join)
• Advocate for solar panels on community housing and schools in your area
• Support community energy projects in your region (start by downloading the Our Own Power Toolkit)
• Contact your local representatives about ending fossil fuel subsidies
• Share our research and reports to help others understand how our energy system really works