News
September 23, 2025
Energy security ‘yesterday’s problem’, says Contact Energy boss
Mike Fuge says Contact Energy is having to wait up to two years for key equipment to be delivered from overseas, making faster consents for new power plants more crucial.
**Energy security ‘yesterday’s problem’, says Contact Energy boss**
Contact Energy CEO Mike Fuge has declared energy security "yesterday's problem," but not in a way that suggests the issue is resolved. Instead, Fuge is highlighting a new, equally pressing challenge facing the energy sector: significant delays in the delivery of essential equipment from overseas suppliers. These delays, stretching up to two years for crucial components, are hindering Contact Energy's ability to rapidly bring new power generation online.
Fuge's remarks underscore a shift in the landscape of energy security concerns. While traditionally the focus has been on ensuring a reliable and consistent supply of energy to meet demand, the current bottleneck lies in the logistics and supply chains necessary to build and maintain that infrastructure. The extended lead times for equipment are essentially acting as a brake on the development of new renewable energy sources and other power generation facilities.
This situation makes the consenting process for new power plants even more critical, according to Fuge. With lengthy delays already baked into the supply chain, streamlining and accelerating the consenting process becomes paramount to mitigating the overall timeframe for bringing new generation capacity online. Faster consents would allow Contact Energy, and potentially other energy providers, to be more responsive to fluctuating energy demands and ensure a stable energy supply for the country.
The implication is clear: even if the raw materials and investment capital are available, the ability to actually build and commission new power plants is increasingly dependent on factors outside of Contact Energy's direct control. The global supply chain disruptions, exacerbated by factors like the pandemic and geopolitical instability, are having a tangible impact on the energy sector's ability to meet future energy needs.
Fuge's comments serve as a warning and a call to action. Addressing energy security requires a holistic approach that not only considers fuel sources and generation capacity but also the often-overlooked complexities of global supply chains and the efficiency of regulatory processes. Without addressing these bottlenecks, the country risks falling behind in its efforts to transition to a more sustainable and secure energy future. The need for proactive solutions and adaptive strategies has never been more apparent.
Contact Energy CEO Mike Fuge has declared energy security "yesterday's problem," but not in a way that suggests the issue is resolved. Instead, Fuge is highlighting a new, equally pressing challenge facing the energy sector: significant delays in the delivery of essential equipment from overseas suppliers. These delays, stretching up to two years for crucial components, are hindering Contact Energy's ability to rapidly bring new power generation online.
Fuge's remarks underscore a shift in the landscape of energy security concerns. While traditionally the focus has been on ensuring a reliable and consistent supply of energy to meet demand, the current bottleneck lies in the logistics and supply chains necessary to build and maintain that infrastructure. The extended lead times for equipment are essentially acting as a brake on the development of new renewable energy sources and other power generation facilities.
This situation makes the consenting process for new power plants even more critical, according to Fuge. With lengthy delays already baked into the supply chain, streamlining and accelerating the consenting process becomes paramount to mitigating the overall timeframe for bringing new generation capacity online. Faster consents would allow Contact Energy, and potentially other energy providers, to be more responsive to fluctuating energy demands and ensure a stable energy supply for the country.
The implication is clear: even if the raw materials and investment capital are available, the ability to actually build and commission new power plants is increasingly dependent on factors outside of Contact Energy's direct control. The global supply chain disruptions, exacerbated by factors like the pandemic and geopolitical instability, are having a tangible impact on the energy sector's ability to meet future energy needs.
Fuge's comments serve as a warning and a call to action. Addressing energy security requires a holistic approach that not only considers fuel sources and generation capacity but also the often-overlooked complexities of global supply chains and the efficiency of regulatory processes. Without addressing these bottlenecks, the country risks falling behind in its efforts to transition to a more sustainable and secure energy future. The need for proactive solutions and adaptive strategies has never been more apparent.
Category:
Politics