'Unworkable' Greens/Labour plan might spark plant closures

An "unworkable" Greens/Labour power plan might spark the closure of thermal plants and threaten supply, an analyst says.

UBS analyst Wade Gardiner says the plan to introduce a single buyer of New Zealand's wholesale electricity to lop up to $700 million off the country's power bills will deter private investment by not guaranteeing the profitability of power plants.

He says it is unclear if capacity payments will be made to owners of thermal power plants which, under New Zealand's hydro-dominated electricity system, are essential in dry years.

 

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