Electricity, disasters and Feed In Tariffs


I’ve been itching to write more about FIT for ages as you will know if you have been reading my blogs. If you didn’t, my last blog was pretty much a summary of my thoughts which started with the Christchurch earthquake.

Prior to that for a few years I have been wondering why a ‘clean green’ country like New Zealand only went so far as to provide subsidies for roof insulation and clean heating. Where is the NZ Green Party on FIT, I asked 2 years ago. I’m not even sure where the party is on much at all at the moment and its election year, when National has launched its new policies on oil and gas and other efficient power sources like coal.

In fairness I do have to acknowledge that Environment Minister Nick Smith did through caution to the wind at the NZ Wind Energy Conference this month, but he also made the point that you need windy places and probably also noted the frequent opposition any time someone wants to set up a wind farm. Personally I like them and if they are silent, I wouldn’t have a problem looking up at them on a hill somewhere.

Dutch windfarm

I have 2 interests here, the first one is renewable energy in the form of solar panels, with the ability to feed power into the grid, but also the ability to make individual households and businesses more resilient in times of crisis.

The common thread anywhere in the world when there is a disaster is that the power goes off. In my recent posts this month I have discussed a whole range of issues where we are so reliant on electricity today that there are a variety of problems after the crisis is over.

I want to again acknowledge the heroism of electricity workers and supporters who risked life and limb to get things up and running as quickly as possible.

Anyway, back to my story. Imagine if we followed on from the subsidies to put insulation into our roofs, by offering subsidies and Feed In Tariffs for installing solar panels on the roofs. This is something we should be doing anyway, but imagine if a large number of people were still able to have at least some electricity when the grid is down. They would still potentially have phone communication, they would have lighting, heating, the ability to wash themselves and much more.

We could find ourselves with a renewable energy source that doesn’t pollute, makes people much more aware of power consumption, involves the community and provides greater resilience while allowing us to get closer to meeting our commitments to reducing carbon waste that we so obligingly adopted with the Kyoto Protocol.

It has been said that I am wont to be verbose. I don’t necessarily want to change that because I am intensely interested in what I write about, however I don’t want to lose you dear reader (borrowed that from Stephen King). So here’s what I’m going to do. I am going to write an new series of shortish blogs on the benefits of FIT for New Zealand in the hope that more people will understand the massive potential benefits to New Zealand and put some pressure on the politicians and energy authorities to do something about it.

I’ve done some reading on the topic and found the paper by Miguel Mendonca of the Birkbeck Institute of Environment, Birkbeck College, University of London particularly helpful. He also wrote the book Feed-in-Tariffs Accelerating the Deployment of Renewable Energy. You can find more information here. He discovered that FIT could work in the UK, that it had many positive benefits above and beyond the basics of a renewable energy source and I plan to discuss some of these from a New Zealand context. I also find it interesting that some people (who perhaps are the ones who wanted Henry Ford to breed faster horses instead of horseless carriages) say there is not enough sunlight in NZ to create an acceptable level of energy. Kiwis who go to UK for their OE’s don’t often come back recounting stories of endless sunny days.

So lets explore what FIT’s and solar power can do for NZ, for our resilience, for our GDP, for our commitment to the environment, for industry, for entrepreneurs and to generally show the world that we are in fact as green as we say we are. There are some amazing benefits to be had along the way.

Please come back and check out what I have learned.

Doesnt look that shabby

Food scarcity and arid land


In my last blog post I wrote about the importance of agriculture to our economy. Then I started hearing stories that farm sales were down, especially dairy. Apparently of over 4,000 farms on the market, only around 200 sold last month.

Good news for some of the farmers who want out, because there are foreign investors who want to buy them. One company wants to spend $1.5 Billion dollars buying NZ farms. You would have to wonder if we can’t make a good living out of farming how can other countries do it? If we do sell them, where will the earnings from those farms go? Not into our pockets I would suggest.

China has a problem. They have a large dry land mass and not enough water to grow the crops they need and a huge and growing population. What are they doing about it? They and other countries such as Middle East are buying good arable land wherever they can get it for a good price. For example China is buying farming land in Mozambique, Angola, Malawi, Nigeria and even Zimbabwe. It’s not all bad, they are teaching local farmers better techniques in animal husbandry, improving crop yields etc.

What are the motives of China and Arabic countries in buying this land? They need the food. In Ethiopia, one of the worlds poorest countries, not only are they selling land to foreign countries, they are giving them tax holidays for a number of years, but what is of greater concern is the expectation that most, if not all of the crops will be going back to countries such as China, Saudi Arabia and Kuwait.

I ask myself therefore, again, why can’t we produce high yield crops on our fertile soils and sell it to the countries that need it. Once those countries have bought our land, we won’t be getting it back and I wouldn’t expect us to gain much in GDP from the crops they grow.

As I said in my last blog, the ‘good old days’ were when we were largely an agrarian economy, we had plenty and we also had plenty to export. Now we have fantastic biotechnology and the ability to increase yields, quality and in many cases without using GM technologies.

I would hate to look into our future and see a country that can’t feed itself, that grows crops on farms owned by other countries, go straight offshore to feed them with minimal economic benefit to us. I would welcome someone to explain the logic of this.

We have expertise, maybe we should be assisting some of those countries who are unable to maximise the return on their land, help them thrive and clip the ticket. That would be a win win. While we do that, we also continue to research and improve product, the grasses and other food sources for animal feed etc. We do have some successes such as Fonterra, Livestock Improvements and many other thriving areas of research and results in biotechnology. We should stick with what we are good at and rather than give our farms to the Chinese, Arabs and others who want them, let the Government buy them. They could be run by unemployed people, who would get training on the job and perhaps even interest free loans to purchase some of those plots and use the skills they have obtained to build themselves a healthy asset and income, while increaseing our balance of payments. Is that silly? What’s wrong with my thinking?

In February this year there were around 168,000 people unemployed. Lets put them to work on those farms, teach them a trade, help them make something of themselves and help them earn the money to buy there way in with low interest loans and subsidies. What could we produce with 168,000 people working instead of paying them to do nothing. The single person benefit is around $160. That works out to a wasted loss of around $26,880,000 per annum. I say lets buy those farms and keep them in New Zealand hands.

This Video from TVNZ gives an example of what is happening.