Coasties are feeling the pinch as electricity prices in New Zealand soar, highlighting an urgent need for alternative energy solutions.

Recent spikes in wholesale prices, reaching as high as NZ$1,000 per megawatt hour, have led to temporary shutdowns at North Island pulp and paper plants.

Associate Energy Minister Shane Jones has accused major energy generators of profiteering during this period of scarcity.

The government is exploring measures to curb these high prices, including investigating the feasibility of importing liquid natural gas (LNG).

However, this solution, which involves setting up a floating LNG terminal and related infrastructure, could take up to three years and is expected to be costly, with imported gas being significantly more expensive.

In contrast, experts suggest a more immediate and cost-effective solution: expanding rooftop solar installations across New Zealand.

Stephen Poletti, Associate Professor of Energy Economics at the University of Auckland, alongside Professor Bruce Mountain from Victoria University and Geoff Bertram, a visiting scholar at Victoria University of Wellington, argue that increasing the use of rooftop solar could significantly augment the national electricity supply and help lower prices.

The recent electricity crisis stems from low hydro-lake levels and a reduction in natural gas supply, coupled with the market power held by major generator-retailers.

Since 2015, New Zealand has decommissioned nearly 600 megawatts of gas plant capacity without adding new facilities.

The Electricity Authority’s 2023 study anticipates that gas-powered generation will diminish further, making it increasingly uncompetitive against cheaper wind and solar renewables.

Grid-scale renewable energy sources are expanding, with projections for 270 megawatts of new geothermal, 786 megawatts of additional solar, and 40 megawatts of new wind power by 2025.

However, the proposed expansion of rooftop solar could offer a quicker fix.

Research suggests that modest subsidies could rapidly increase solar capacity by up to 700 megawatts annually, potentially reducing electricity prices significantly.

New Zealand’s abundant hydro power, combined with distributed rooftop solar, could mitigate the risks associated with fluctuating hydro-lake levels.

Countries like Australia, Italy, and Germany have made significant strides in solar energy, and New Zealand’s existing hydro storage could provide a unique advantage, balancing solar power with hydro energy to meet peak demands.

As the energy crisis continues, the expansion of rooftop solar emerges as a promising solution, offering a faster and more economical alternative to LNG imports.

The Energy Minister is urged to prioritise this approach to enhance the nation’s energy security and affordability.