Bite size reckons from the RBP team.
It is a well-known fact amongst New Zealand energy professionals that low hydro lake levels are bad news for consumers in New Zealand’s wholesale electricity market. The effective capacity of our hydro generators goes down, and prices become higher and more volatile, as more expensive fossil-fuel plants come online to make up the shortfall. Typically, lower lake levels can be partially offset by the use of gas peakers (which can be brought on and offline quickly to match peak demand); however, this spring pipeline issues have reduced production of the Pohokura gas field, further exacerbating things. [Read More…]