WEBVTT - Quick Bite: Global power demand is surging – why is NZ different?

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<v Speaker 1>You're listening to a shares These podcast, Perhaps if you

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<v Speaker 1>can give us an idea of what you think the

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<v Speaker 1>demand is for electricity, I mean the likes of data

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<v Speaker 1>centers and you know, worldwide, not.

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<v Speaker 2>Just New Zealand. You know, it just seems like we

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<v Speaker 2>need more and more.

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<v Speaker 1>But what sort of stats can you offer for that?

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<v Speaker 2>Yeah, so the global picture is quite interesting. So globally

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<v Speaker 2>we've traditionally grown energy electricity demand by about two and

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<v Speaker 2>a half percent per annum, but over the past year

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<v Speaker 2>that's really tipped up, so it's almost double that in

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<v Speaker 2>a year. AI. It's a combination of a few things,

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<v Speaker 2>so AI is definitely a driver, but also the cost

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<v Speaker 2>of solar and the access to that, particularly in emerging economies,

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<v Speaker 2>has driven you know, rapid electrification in India, and then

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<v Speaker 2>China is going gangbusters electrifying and you know, is really

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<v Speaker 2>an electro state now and a real pioneer of you know,

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<v Speaker 2>rapid deployment of renewables. And also they manufacture so much

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<v Speaker 2>of the of the products that go across the electricity

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<v Speaker 2>supply chain as well. So the global picture for electricity

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<v Speaker 2>is growth. The New Zealand picture is more complicated. So

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<v Speaker 2>you know, most listeners will have been aware that over

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<v Speaker 2>the past year we've had significant struggles in terms of

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<v Speaker 2>security of supply. But on top of that, we've had

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<v Speaker 2>really high prices since really about twenty eighteen they kicked up,

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<v Speaker 2>and as a result of that, you know, we've had

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<v Speaker 2>quite flat demand. So and even last year it declined

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<v Speaker 2>because we were asking large consumers to curtail their usage.

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<v Speaker 2>But I think we should be more optimistic about the

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<v Speaker 2>about what future the future, and you know that if

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<v Speaker 2>we can build enough generation to service the demand, then

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<v Speaker 2>you know, there we should be realizing a significant increase

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<v Speaker 2>in it. So we already know that there there's you know,

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<v Speaker 2>between half a gig and a gig depends who you

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<v Speaker 2>talk to. With the data centers sitting there to be

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<v Speaker 2>built before twenty thirty, so that's pretty soon. So when

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<v Speaker 2>you think if we've got that much data center load,

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<v Speaker 2>then in terms of the new renewables to match off,

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<v Speaker 2>we need you know, if it's GUO, they're all an

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<v Speaker 2>exact match, but if it's wind and solar, then we

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<v Speaker 2>need about you know, four times the capacity of whatever's

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<v Speaker 2>coming on to be built. So there's the opportunity to

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<v Speaker 2>realize those that growth from data centers. We will continue

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<v Speaker 2>to get some increase from the residential space, and that

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<v Speaker 2>will be driven by the rate of house builds. So

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<v Speaker 2>we see, you know, every house that gets built that

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<v Speaker 2>will edge consumption and the rate at which they electrified

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<v Speaker 2>their transport. So yeah, if you buy an EV that

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<v Speaker 2>will add kind of twenty to thirty percent more consumption

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<v Speaker 2>onto your household. So I think if we get the

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<v Speaker 2>clean car discount back that ages. Yeah, we saw that

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<v Speaker 2>that when that discount was in place. We did see

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<v Speaker 2>the rapid more rapid adoption of vb's, but that's really

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<v Speaker 2>plateaus recently, and I think also the economic climate impacts that.

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<v Speaker 2>And the other thing is we're also saying that many

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<v Speaker 2>households are quite cost constraint conscious, so actual residential consumption

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<v Speaker 2>on averages is pretty flat, but it's that new build

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<v Speaker 2>that's adding to the system as well. Investing involves the

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<v Speaker 2>risk you might lose the money you start with. We

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<v Speaker 2>recommend talking to a licensed financial advisor. We also recommend

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<v Speaker 2>reading product disclosure documents before deciding to invest.