I still like the idea of running a trans-Tasman cable to Southland and building data centres down there when Rio Tinto closes down. Plenty of cheap and green power, and the extra cable would solve the latency issue and provide some extra resiliency for NZ (all international cables currently land in the North Island.)
Incorrect. All of the hydropower is used as present, so any extra marginal load added to NZ causes extra gas usage (or coal sometimes). If the lakes are full and water is being sent down spillways, then perhaps you can get free power, but that is rare.
Also note that lots of people think transmission losses are heavy, but actually they are less than 10%. For example HVDC transmission losses are ~3% per 1,000km (the DC link from Benmore to Wellington)
Rio Tinto aren’t closing the smelter down. They can’t just shoot people like in other countries so they have to be crafty to get what they want.
The whole “give us cheap power or we close this plant down” is just a genius power play.
People don’t want to be out of jobs and govt want a good excuse to get the deal done. The politicians look like savvy negotiators keeping this massive corporate begging and rio tinto get discount rate power. It’s really a win win ruse for them.
