Will Rankine power supply increase wholesale electricity prices in New Zealand?

Concept Consulting’s modelling shows that without thermal generation from the Rankine units as part of New Zealand’s energy storage solution, wholesale electricity prices would likely be 60% higher in the short-term (the next two-to-three years) and 11% higher in the long-term (ten+ years).

What's going on with electricity prices in 2025?

You can read more about it here. As we step into 2025, hydro storage levels are at 85% capacity, which is 22% higher than usual for this time of year. Wholesale electricity spot pricing remains low, with thermal generation contributing only about 3-5% to the grid. Current prices are around 4-5c/kWh, a significant drop from last January’s 25c/kWh.

Can home energy storage reduce energy costs?

New research analyses solar generation and demand data across regions under various price pathways, including the role of home energy storage. Residential rooftop solar PV provides a means for consumers to lower their electricity costs, particularly if they choose to move more of their household energy consumption to electricity.

Why is fuel storage important in New Zealand?

The choice of fuel used for storage is critical for security, price stability and environmental impact. There is value in New Zealand having diversity for its storage solutions, as seen by the impact of the lack of gas in Winter 2024. Working with every facet of the energy industry, to help clients respond to business issues and trends.

Is solar PV a viable option for New Zealand households?

This is the first study in New Zealand to use detailed and high-quality data for both solar supply and residential demand. It shows solar PV is likely to be financially viable for a significant proportion of New Zealand households, particularly for those who consume a lot of energy.

Why should New Zealand increase electricity production?

Increasing electricity production will also enable the decarbonisation of the economy – which is needed to meet New Zealand’s climate goals. Despite the building of more renewable generation plants, future prices 1 for winter 2024, 2025 and 2026 remain high (see figure 1).