Nicola Willis

They don't need to be as dramatic as the OECD suggests, but some adjustments will be needed.

It is an alarm bell and their analysis is the same as ours, which is the problem is with gas drying up, that creates a risk to everyone wanting to invest in generation.

And so in the absence of some backup firming capacity for when those hydro lakes run low, we can only expect the price to keep going up.

The report suggests that, yep, an LNG import facility would be a good transition tool so that we don't run out in the short term.

And then over the long term, technology will help us.

There'll be better batteries.

Our hydro facilities will be able to do more.

But in the meantime, we've got an immediate issue.

And if we don't solve it, we can't expect the investment and therefore the lower prices we all want.

We can have abundance because unlike many other countries, we have the capacity to create a lot more renewable energy.

We've already seen a big uptick in the amount of solar farms and wind farms going up.

But the constraint on that, ironically, is if they don't think they can get back up generation when their sun isn't shining or their wind isn't blowing.

then they are reluctant to invest because what is the products they will have to sell to consumers?

So what the analysis says is actually if you know you've got backup, whether it's that coal being burned at Huntly, whether it's that LNG facility or whether in time it's more natural gas, then others will be more prepared to invest in renewable energy and you can get to abundance.

That's our vision.

We want an electrified economy.

We want more renewable energy.

But giving people the confidence to invest is the key factor.

Good morning.

Well, look, the truth is that Australia entered this crisis with inflation running a lot hotter than in New Zealand.