State Power, Corporate Power – or ‘Little Powers’? A century of energy exploitation in Aotearoa New Zealand

by Christine Dann

“The day must come when electricity will be for everyone, as the waters of the rivers and the wind of heaven. It should not merely be supplied, but lavished, that men may use it at their will, as the air they breathe.” wrote the French novelist Emile Zola in his novel Travail [Work], published in 1901. This quote is on the cover of the second edition of the Consumer Guide and Cookery Book, published by the Municipal Electricity Department [MED] of Christchurch, New Zealand, in the 1930s. The Preface to that book states:

“Today electricity is paramount. It is representative of modern life and modern thought, and as such in time to come, it will be looked on as the force which typifies our age.”

Figure 1: A first edition cover of ‘Work’ by Emile Zola.

‘Our’ age? Ninety years later, what force typifies ‘our’ age? Is electricity still paramount? Is it possible to trace a line from New Zealand’s first state-owned and operated hydro-electricity station – opened in 1914 1) and still supplying power to the citizens of Christchurch 110 years later – to the state encouragement 2) of electricity-hungry data centres owned and operated by foreign companies, which are currently being built in New Zealand? 3)

Most of the MED book is devoted to very basic recipes. These follow twelve pages devoted to machines or tools that use electricity and instructions on how to use them. The main focus is on cooking with electricity, but other energy-using items covered include curling tongs, floor polishers, washing machines, refrigerators, sewing machines and heating pads. Domestic items, most of which were standard in New Zealand homes by the 1950s. Appliances. Musician Andrew London satirized the Kiwi fondness for buying and using them in his song of the same name 4) – but is this really what the ‘force that typifies our age’ is all about? Is this what should be lavished on the world?

Certainly, according to the corporations which sell them and advertise them – mostly on-line. Like Amazon – although these days it makes most of its money from its data centers business. Amazon Web Services is currently vying with Microsoft and Google to be the most valuable data center company in the world – and data uses a lot more energy than appliances. So much more that the Big Data Three now have plans to go nuclear. 5)

Nuclear energy was an option which New Zealand ruled out in the 1980s, after a decade of protests against nuclear weapons and nuclear power, and also against the expansion of hydro-electric schemes which damage rivers and lakes, and of energy-hungry and polluting industries (like aluminum smelters). The government which ruled it out – the fourth Labour government 1984-1990 – also followed the political trend being set in the UK and the USA of privatizing public assets, and deregulating markets. 6) This included selling off the state-owned power generators and retailers, partially or completely.

This did not result in cheaper electricity prices for consumers, as promised. It did result in higher returns for investors and little or no investment in improving electricity supply using existing means, or (without state assistance) the development of solar and wind energy sources. So by 2020 Aotearoa was facing all the physical energy supply issues identified by Scheyder in The War Below and all the market manipulation issues covered by Christophers in The Price Is Wrong 7) By 2024 the government had dug the country into a deeper hole of energy contradictions. A top wind turbine company canceled plans to build off-shore wind power in New Zealand after the government drafted legislation to fast track consent for a seabed mining company wanting to mine sites suitable for wind power, while the same fast track status was granted to a trash-to-energy incinerator company after the local government authorities had declined to consent to its plans, and the then Minister for the Environment had referred the matter to the Environment Court. 8)

As I write, New Zealand is also facing the biggest sucker of electrical energy ever created – digital data storage and delivery. This was bad enough when it was being sent directly to electricity-powered digital ‘appliances’ (phones, personal and commercial computers, screens of all kinds),9) but in 2023 a new and extremely energy-intensive function was introduced – machine learning, commonly known as AI. It is extremely difficult to get accurate data on the contribution of different industries to greenhouse gas (GHG) emissions, as each one has an obvious interest in disguising how big their contribution is. I have been trying to track it for the past few years, and different sources give different numbers. However, the trend is clear – the GHG emissions of the Internet now exceed those of global aviation, not to mention that so-called renewable energies do not offer a ‘clean’ or clear cut solution to the fossil fuel dependency or other activities like mining that are rooted into their production. With the introduction of AI, they are also rising rapidly. 10)

Photos of the first state owned and operated hydro dams to supply electric power to Christchurch. Source: From the MED Consumers Guide and Cookery Book (1951).

How can this be? Isn’t digital data all in a fluffy white cloud somewhere? No – it is stored in and travels through large data centers powered by electricity, and most of that electricity is currently generated by GHG emitting power plants, fueled by coal or gas. New Zealand is unusual in that only +/- 20% of its current electricity supply is generated by burning fossil fuels, but that percentage increases in drought years, when the damage is compounded by importing low-grade coal as the power source. 11)

The non-fossil electricity usually keeps the domestic and commercial appliances running, but in 2024 it was too expensive to keep two major wood fiber processing mills in business, and they both closed after decades of operation.12) The current government was not prepared to help the wood processing industry keep using energy from renewable sources. This is consistent with the position taken by the current prime minister, back in May 2023, when he was leader of the National Party. At that time he called the Labour government’s $140 million grant to the Glenbrook steel mill to help it convert to renewable energy an example of “corporate welfare”. 13)

In July 2023 that Labour government gave $90 million to the mega-dairy company Fonterra (which produces 30% of the world’s dairy exports) to help it also transition out of coal. Fonterra claims it will be done with coal by 2037, and “Net Zero” by 2050.14)

So if sustainably-produced electricity is currently too expensive for one primary industry, and two other major industries have to be subsidized to move away from coal and gas, where and how are the Big Data companies going to source their ‘green’ energy? How much energy will they need? How much will Fonterra and Glenbrook need? Will the price of electricity paid by New Zealand’s only aluminum smelter remain so low that it means that “…every household in the country [pays] an extra $200 a year to subsidize it…” 15) What is the rate of return on investing in a data company versus a dairy or an aluminum company? How long is a piece of string….?

Cover of the first edition (1935) of the MED Consumers guide and cookery book.

I can’t predict where this is going to go. I can say that energy and nature exploitation by the state and corporations operating in Aotearoa follows a pattern which was established over two centuries ago, when in 1768 Captain James Cook was sent out by the UK government (Admiralty branch) and the Royal Society with instructions (which were kept secret) to explore the lands in the South Pacific and “… carefully to observe the Nature of the Soil, and the Products thereof; the Beasts and Fowls that inhabit or frequent it, the Fishes that are to be found in the Rivers or upon the Coast and in what Plenty and in Case you find any Mines, Minerals, or valuable Stones you are to bring home Specimens of each, as also such Specimens of the Seeds of the Trees, Fruits and Grains as you may be able to collect…” 16) He was also instructed to take possession of those lands for His Majesty. Ideally with the consent of the natives – but where it was not granted, as it certainly was not in the case of Australia – it happened anyway.

From the late 18th century a process of continuous exploitation for export of all the ‘natural resources’ of Aotearoa New Zealand began, and it continues to this day. Fur seals, right whales, kauri trees and gum, harakeke (flax), gold, coal, podocarp forests, orange roughy, crayfish, beech forests, gas … the list goes on and on. Now that most of those things have gone, what is left?
Primary export-related industries (dairy, meat and fertilizer) made up half of the top twelve GHG emitters in 202317) 17 and the picture was much the same in 2024 – with the added twist that what you don’t know about can’t hurt you – or whatever other rationale the government is using to pass legislation to stop company-level data on greenhouse gas emissions from farms from being published.18)

But now a new horse is in the race to exploit and export energy-based products from New Zealand – Big Data. How long will this race run, who will win out, and what will the vast majority of New Zealanders pay in money, pollution, extreme weather events, sea level rise, land degradation and loss of fellow life forms to subsidize the continuing exploitation of Papatuanuku (Mother Earth)? Will New Zealanders catch up with the Swiss, learn that 2000 watts per capita is all that is needed to live a good life, and work out how to make it happen accordingly? 19) Will they start to exercise the ‘little powers’ referred to by Raúl Zibechi in Territories in Resistance20) in preference to being crushed by the big powers of entangled corporations and states?
2000 watts sounds lavish enough for me, and I think Zola would be happy with it. He wasn’t a fan of greedy elites; he cared about those in need. Time to power down?


About the Author: Christine Dann is a researcher, writer and gardener who has been active in the feminist and environmental movements in Aotearoa New Zealand, has written books on politics, gardening and food, and has a Ph.D. in environmental policy. For the past twenty years she has been co-working on creating a one hectare 'habitat' garden and forest on Te Pataka o Rakaihautu/Banks Peninsula.

1)
The history of the construction of the Lake Coleridge power station given at https://canterburystories.nz/exhibitions/christchurch-city-light-generation-supply/lake-coleridge shows that building power plants of any kind in Aotearoa has always been a multi-year process, involving local and central government processes and personnel, as well as private expertise, investment – and labour.
2)
In May 2022 the New Zealand Prime Minister visited the top US data companies in the USA to discuss their building of data centres in New Zealand. See - PM's US trip: Jacinda Ardern update from Seattle after Amazon, Microsoft talks - https://www.nzherald.co.nz/nz/pms-us-trip-jacinda-ardern-update-from-seattle-after-amazon-microsoft-talks/HIDWJQV7RH7TTAJDMBWTBPP5WY/
3)
Microsoft is building three of them, which it calls its ‘New Zealand datacenter region’. See - https://news.microsoft.com/aotearoa-datacenter/
4)
Listen to the song here - Appliances - https://soundcloud.com/andy-london-1/appliances and read the lyrics here - https://andrewlondon.co.nz/lyrics/appliances/
5)
See Top 10: Data Centre Companies in the World 2024, Amber Jackson, January 24 2024 https://datacentremagazine.com/top10/top-10-data-centre-companies-in-the-world-2024 and Google signed a deal to power data centers with nuclear micro-reactors from Kairos — but the 2030 timeline is very optimistic - https://techcrunch.com/2024/10/14/google-signed-a-deal-to-power-data-centers-with-nuclear-micro-reactors-from-kairos-but-the-2030-timeline-is-very-optimistic/
6)
The histories of the energy and environment related protests and movements in Aotearoa New Zealand are covered in Roger Wilson (1982) From Manapouri to Aramoana and Catherine Knight (2018) Beyond Manapouri. The political and economic ideology and its application by successive governments in the 1980s and 1990s was documented by Bruce Jesson in Behind the Mirror Glass (1987), Fragments of Labour (1989) and Only Their Purpose Is Mad (1999), by Brian Easton (1997) in The Commerialisation of New Zealand, and by Alister Barry in the 1996 documentary Someone Else’s Country (on line at https://www.youtube.com/watch?v=8PISea_Tc4k&t=12s).
7)
See the review of these 2024 books in this issue – ‘The Green No Deal – a review of The War Below and The Price Is Wrong’.
8)
For the current conflict between mining and wind power in Aotearoa see - Offshore wind developer pulls out of NZ amid seabed mining concerns https://newsroom.co.nz/2024/10/24/offshore-wind-developer-pulls-out-of-nz-amid-seabed-mining-concerns/ “Spanish offshore wind developer BlueFloat Energy is cancelling plans for wind farms off the coast of Taranaki and Waikato, citing “key uncertainties” about the route to market and the competition for allocation of the seabed.” For where the Waimate waste-to-energy plant proposal was at before it got added to the fast track list see - https://www.epa.govt.nz/public-consultations/in-progress/waimate-waste-to-energy-plant/ and https://www.ecan.govt.nz/do-it-online/resource-consents/proposals-of-public-interest/waimate-waste-to-energy-plant-resource-consent-applications/ For what the community action group Why Waste Waimate thinks of the company wanting to build the plant being fast tracked see Community input “Not Relevant” http://www.whywastewaimate.com/2024/10/23/community-input-not-relevant/
9)
How much time is the average digital appliance user now spending on line, and what is the carbon footprint of that? In May 2024 Sarah DeWeerdt reported on new research in which “The researchers conducted a life-cycle assessment of all the infrastructure and electricity required to underpin the online activities of the average Internet user: 3,230 hours of digital content consumption per year, including 730 hours of web surfing, 894 hours of social media, 833 hours of video streaming, 566 hours of music streaming, and 207 hours of video conferencing on smartphones, tablets, laptops, desktop computers, and televisions.” The average Internet user spends 3,230 hours online every year. Here’s the carbon footprint of that. https://www.anthropocenemagazine.org/2024/05/the-average-internet-user-spends-3230-hours-online-every-year-heres-the-carbon-footprint-of-that/?gad_source=1
10)
“As of 2022, such data centers were already utilizing 460 terawatt hours (TWh) but are on pace to increase to 1,050 TWh by the middle of the decade. To put that in perspective, Europe’s total energy consumption in 2023 was around 2,700 Twh.” Joshua Frank, October 2024, The Cash Will Soon Flow Robbing Africa’s Riches to Save the Climate (and Power AI) https://tomdispatch.com/the-cash-will-soon-flow/ For book length treatments of the bio-physical nature and impacts of data processing see Guillaume Pitron (2023) The Dark Cloud. How the Digital World Is Costing the Earth and Kate Crawford (2021) Atlas of AI. Power, Politics, and the Planetary Costs of Artificial Intelligence. For the latest information on how the Big Data companies are fudging their emissions figures see Data center emissions probably 662% higher than big tech claims. Can it keep up the ruse? Emissions from in-house data centers of Google, Microsoft, Meta and Apple may be 7.62 times higher than official tally https://www.theguardian.com/technology/2024/sep/15/data-center-gas-emissions-tech
11)
Is NZ bringing in 'Indonesian coal every month to keep the lights on’? 26 April 2024 https://www.rnz.co.nz/news/environment/515221/is-nz-bringing-in-indonesian-coal-every-month-to-keep-the-lights-on
12)
The Karioi pulp mill closure was announced in August 2024 (Forest product company to shut entire operation as result of energy prices, 20 August 2024, https://www.rnz.co.nz/news/business/525702/forest-product-company-to-shut-entire-operation-as-result-of-energy-prices ) RNZ reported that” “Winstone Pulp chief executive Mike Ryan said energy prices have increased from $100 per megawatt hour (MWh) in September 2021 to $500 per MWh in August 2024. He said power now makes up more than 40 percent of the company's costs and the increase can't be passed on to customers.“For comparison, our overseas competitors are paying between NZD60 to NZD100/MWhr. At the same time, other input costs remain high and market prices for pulp and timber are relatively low and under pressure.'' In September 2024 it was announced that: Auckland pulp and paper mill closing permanently, union says, 18 September 2024, https://www.rnz.co.nz/news/business/528291/auckland-pulp-and-paper-mill-closing-permanently-union-says with high electricity prices also cited as a reason. https://www.rnz.co.nz/news/business/524398/paper-milling-company-oji-considers-closing-recycling-mill-in-auckland
13)
Fonterra to receive $90 million Government subsidy to transition away from burning coal, 20 Jul, 2023 https://www.nzherald.co.nz/nz/fonterra-to-receive-90-million-government-subsidy-to-transition-away-from-burning-coal/HKUPYZOALFFCBJ2TCU3LHUZSCQ/ Rachel Maher reported that “It comes after a similar deal saw the Government announce a subsidy of up to $140m for NZ Steel - one of the country’s biggest greenhouse gas emitters - to transition away from burning coal. The Glenbrook-based company, owned by multinational company Bluescope, makes up about 2 per cent of the country’s entire greenhouse gas emissions. National Party leader Chris Luxon criticised the NZ Steel announcement at the time and called it “corporate welfare at its worst”. Luxon said National supported the country’s climate change commitments but did not think Bluescope, which made billions of dollars in profit last year, should be receiving a taxpayer handout.”
14)
Getting out of coal https://www.fonterra.com/nz/en/coal.html “We aspire to be Net Zero by 2050 and are working to exit coal at the remaining six out of 29 sites where it is still used, by 2037.” Greenpeace NZ, however, is strongly critical of Fonterra’s record as a GHG emitter (the top GHG emitter in Aotearoa for the past four years). It points out that the dairy industry emits methane and nitrous oxide as well as carbon dioxide, and these other GHGs need to be curtailed as well.((Greenpeace activists scale Fonterra’s Te Rapa dairy factory in dramatic climate protest https://www.greenpeace.org/aotearoa/press-release/greenpeace-activists-scale-fonterras-te-rapa-dairy-factory-climate-protest/ “In August, Fonterra was named New Zealand’s worst climate polluter for the fourth year running, worse than fossil fuel companies such as Z Energy and BP. The dairy co-operative has also been ranked the sixth worst polluting livestock company in the world by methane emissions.”
15)
Tiwai certainty welcome, but concerns about $2 billion subsidy, 4 June 2024 https://www.rnz.co.nz/news/business/518629/tiwai-certainty-welcome-but-concerns-about-2-billion-subsidy Mark Daalder wrote that: “The price of electricity in that deal, while confidential, was so low it meant every household in the country paid an extra $200 a year to subsidise it, the Electricity Authority determined.”
17)
New Zealand's biggest emitters for 2023 revealed, 13 October 2023 https://www.rnz.co.nz/news/national/500074/new-zealand-s-biggest-emitters-for-2023-revealed
18)
NZ’s largest climate polluters revealed, 19 August 2024, https://newsroom.co.nz/2024/08/19/nzs-largest-climate-polluters-revealed/
20)
Raúl Zibechi (2012) Territories in Resistance. See also - “ Zibechi … says: “We have created many spaces for education, for food, for work – not dependent on the state, nor on capital. These are small powers. If we don’t do this then we are going to have rights but no power, and that makes us not only excluded but also vulnerable….. Rights are good. I don’t fight against rights. But the little powers are more important than rights.” Zibechi, 2014, An Interview with Raúl Zibechi A Civilizational Crisis: Different Paradigms and Different Ways To Build Them https://inmotionmagazine.com/global/r-zibechi_int14.html