Small electricity players band together

Smaller players in the electricity market are banding together to by-pass major retailers and ensure supply throughout the year.

Retailer Simply Energy has signed a supply contract with independent company, EDC ltd to offer power output from three generation assets in the North Island – Silverstream landfill generation plant, along with Clearwater Hydro’s Mangapehi and Matawai hydro stations.

Simply Energy director Murray Dyer said it would give EDC security of supply and certainty of pricing throughout the year.

“By combining multiple independent generation assets, we can provide EDC with a hedge profile tailored to meet the specific energy demand of the commercial sites they manage.

“The baseload power output will come from Silverstream. The Mangapehi and Matawai hydro plants’ winter capacity will ensure there are no supply shocks during the year.”

Mr Dyer said the solution would also return greater profits to generation asset owners by circumventing the major generator/retailers.

The Lines Company owned Clearwater Hydro generation manager Laurence Best said the competition and expertise was good for the industry.

“We have a pipeline of new renewable generation projects coming into the market over the next few years,” he said. “Our ability to continue developing these projects is enhanced by Simply Energy being in the market providing innovative generation and supply solutions directly to end consumers.”

Mr Dyer said with the Matawai hydro plant coming on stream, the latest agreement meant Simply Energy now had eight generation assets contracted to them for generation and retail services.