What will that mean for household bills? Well, if

we go back to 70% of energy comes from fossil fuels, 30% comes from electricity.

Electricity, of course, is made in New Zealand.

Sunlight has to travel 150 million kilometres to get to New Zealand, never once goes through the Strait of Hormuz.

It's a good source of energy for New Zealand.

If 60% of New Zealand's total energy came from electricity today, the average household would save $3,000 a year today.

New Zealand's total energy bill would be $10 billion a year less than it is today.

specialist billion dollar import terminal?

What will that mean for household bills?

Well, if we go back to 70% of energy comes from fossil fuels, 30% comes from electricity.

Electricity, of course, is made in New Zealand.

Sunlight has to travel 150 million kilometres to get to New Zealand, never once goes through the Strait of Hormuz.

It's a good source of energy for New Zealand.

If 60% of New Zealand's total energy came from electricity today, the average household would save $3,000 a year today.

Hmm.

billion dollar import terminal?

What does it actually mean? Like, what is he talking about?

Well, the way the electricity market in New Zealand works is we all sell all of our electricity into the wholesale market and then our retail arms have to buy that back, and uh, that's a commodity-based trade.

And so commodities, when they're in balance, you have very stable pricing over time.

Uh, when they're out of balance, you can have a lot of volatility.

Now, electricity is a weather-driven energy system.

So when you get volatility in rainfall or wind speeds across the country, you're gonna get volatility in pricing.

And firming is how we smooth that out.

So where does the energy come from, you know, round the clock? Like, i- i- can they really be fully self-sufficient?

Talk me to, talk to me about the solar p- uh, solar farm that you've approved.

So we, uh, we've reached the final investment decision on Leeston Solar Farm in the South Island, which is a 64 megawatt, uh, solar development.

And that goes, uh, alongside our current one we're building in Eastern Bay of Plenty and the one we built just down the road in Canterbury a few years ago.

And do you think that's okay in the current market, the fact that people are struggling so much with power prices?

Well, I think you've got to look at the energy margin as opposed to headline pricing.

Um, what we've done over the last 12 months or so is better matched our, uh, consumer demand profile with our generation profile.

Uh, obviously, Huntly Power Station is used to help cold winter mornings, cold, uh, winter evenings, et cetera, um, and that's played a big part in that number.

I think consumers lar- by and large, no matter what you're talking about, e- energy's just one facet, uh, of life and bills that we all bloody well have to pay, that, uh, you know, comes down to price point, doesn't it? We want the most efficient for the cheapest.

That's exactly right, and if you look globally, there are no low-energy wealthy countries on the planet.

Every wealthy country uses a lot of energy.

The, the opportunity that New Zealand has is that we can deliver an enormous amount of that energy through electricity and through renewable generation.

[coughs] So New Zealand has about a 20-year head start in terms of, uh, the electricity position, uh, compared to our major trading partners.

Uh, and, uh, so if you look at Australia, for example, you know, uh, e- electricity is still 50% coal-generated in Aus- in Australia, so it's much more expensive than New Zealand.

Um, and so, you know, we, we have that 20-year head start.

Just, uh, yeah, yeah, go down the line, I suppose.

I think consumers, large, by and large, no matter what you're talking about, e- energy's just one facet, uh, of life and bills that we all bloody well have to pay that, uh, you know, comes down to price point, doesn't it? We want the most efficient for the cheapest.

That's exactly right, and if you look globally, there are no low energy wealthy countries on the planet.

Every wealthy country uses a lot of energy.

The, the opportunity that New Zealand has is that we can deliver an enormous amount of that energy through electricity and through renewable generation.

So New Zealand has about a 20-year head start in terms of, uh, the electricity position, uh, compared to our major trading partners.

Uh, and, uh, so if you look at Australia, for example, you know, uh, e- electricity is still 50% coal generated in, uh, in Australia, so it's much more expensive than New Zealand.

Um, and so, you know, we, we have that 20-year head start.

Just, uh, yeah, yeah, go down the line, I suppose.

Why is that so expensive?

So Albert, in 2024, about 10% of New Zealand's electricity was generated from natural gas.

The cost of that's gone up about 50% in the last couple of years.

But more challengingly, the amount of gas available has dropped.

So we have a very big gas generation unit at Huntly Power Station, which can power all of Auckland on its own.

We can only run that at 50% capacity at the moment.

So that's about a 5% drop in the output of total electricity in New Zealand.

Is that accurate?

Your bit, though, why is that so expensive?

So Albert, in 2024, about 10% of New Zealand's electricity was generated from natural gas.

The cost of that's gone up about 50% in the last couple of years.

But more challengingly, the amount of gas available has dropped.

So we have a very big gas generation unit at Huntly Power Station, which can power all of Auckland on its own.

We can only run that at 50% capacity at the moment.

So that's about a 5% drop in the output of total electricity in New Zealand.

What's your response to that?

The less reliant we are on, ironically, the less reliant we are on renewables, wouldn't the returns be more stable?

Look, everybody wants stability, but the reality of energy coming from weather systems is that they're inherently unstable.

And, you know, we've had very wet periods and very dry periods in the last two years, and we just have to smooth that out.

And that's basically the benefit of the integrated model that we have here in New Zealand, is that we can do that behind the scenes and it doesn't land on consumers.

So they're not getting a $50 Powerball one month and a $500 Powerball the next month.

And so renewables are an important component of that.

But inherently, sun, wind and rain has volatility to it.

Have we ever seriously considered doing offshore wind farms here? Is it something that you've looked at?

What's next year looking like, or is it too early to say?

Well, New Zealand moves from wet to dry within about a six week period.

So the next six weeks looks really good.

And if it keeps raining, then it'll keep rolling forward.

But, you know, we have a pretty healthy coal stockpile now and the gas storage facilities are fairly well stocked.

So with the lakes full and those reserve fuels in place, we're in good shape.

Is that significant?

It is in the context of where we've been.

What's next year looking like, or is it too early to say?

Well, New Zealand moves from wet to dry within about a six week period.

So the next six weeks looks really good.

And if it keeps raining, then it'll keep rolling forward.

But, you know, we have a pretty healthy coal stockpile now and the gas storage facilities are fairly well stocked.

So with the lakes full and those reserve fuels in place, we're in good shape.

Is that significant?

It is in the context of where we've been.

Does that mean that we're going to be all good for winter?

Look, basically it's between six and eight weeks between a wet and a dry sequence in New Zealand.

So we don't store an enormous amount of water.

Less than 5% of our total annual demand is stored in water.

And so it really depends on how it rains over the next three to four months.

But the key thing is the reserve fuel positions are very healthy.

Gas storage is near the top of its capacity.

What's the situation and what do people need to do to prepare for it? What are you saying?

Does that mean that we're going to be all good for winter?

Look, basically, it's between six and eight weeks between a wet and a dry sequence in New Zealand.

So we don't store an enormous amount of water.

Less than 5% of our total annual demand is stored in water.

And so it really depends on how it rains over the next three to four months.

But the key thing is the reserve fuel positions are very healthy positions.

Gas storage is near the top of its capacity and the coal stockpile at Huntly is sitting well over a million tonnes now.

What's the situation and what do people need to do to prepare for it? What are you saying?