The New Zealand government said in March that it is considering making major changes to its electricity market, because a lack of rain and faltering investment in new generation projects is causing fears of power shortages to grow.
New Zealand is largely dependent on hydroelectric power. The government says about 150 megawatts of extra generating capacity will need to be added each year to meet rising demand and ensure an adequate reserve capacity to protect against years when there is low rainfall.
The country faced its last serious power shortage in 2001, when a dry winter cut availability, caused spot prices to rise sharply and led the government to call for a voluntary 10% reduction in electricity use.
Prime minister Clark said: “We know from the 2001 experience that it is possible to manage through dry years, but for the long term it is not really satisfactory to have dry years throw New Zealand power security as much as they now appear to do.”
More on Risk Management
Banks could be "unbundled" if they reject technology overhaul
ABSTRACT In this paper, we discuss investment allocation to multiple alpha streams that are traded on the same execution platform. This includes when trades are crossed internally, resulting in turnover...
Welcome to The Journal of Investment Strategies' Online First Forum. Here you will find the latest peer reviewed, accepted papers before they are available in print. With Online First publication,...
French bank, JP Morgan and Nomura have all lost senior clearing execs in past month
Sign up for Risk.net email alerts
Research chief is sceptical about end of oil indexation in European gas
Mexico's energy reform may lead to closer ties with adjacent US states
Swap dealers playing a guessing game while complying with CFTC rules
Bill Perkins believes rising demand and reduced risk warehousing will create opportunities for natural gas traders: video
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.