Recent trends in energy prices - forestry, energy and a climate of change

Authors: G. P. Horgan
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2009, Issue N.Z.J.For. 54(2) 2009, pp 17-24, Aug 2009
Publisher: New Zealand Institute of Forestry

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Abstract: Over the last thirty years average real prices for all major energy forms electricity, oil and gas have been relatively stable. Issues of national concern relating to energy, namely the dependence on imported oil and questions about longer term real energy prices, are similar now to concerns expressed 30 years ago. However, the drivers for these concerns have changed with greater emphasis now being placed on the negative environmental consequences of using fossil fuels While average real price of fuels such as natural gas and electricity have not changed significantly over the period their relative cost to different sectors of the economy has changed. Costs to the residential sector have increased by 50% (electricity) and 100 percent (gas). This has improved the competitiveness of wood for space heating in this market. The economics of converting wood into liquid fuels has changed little over the last 30 years. Petrol prices have varied but at present the estimated retail cost of wood based liquid fuels is some one-and-a-half to two times that of petrol The bioenergy programme of the Forest Industry Development Agenda (FIDA) provided the catalyst for the conversion of 31 school heating systems to wood fuels. FIDA has supported a number of other demonstration projects and funded development of an electronic bioenergy knowledge centre to address the perennial problem of lack of information about energy processes and products.

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