Infratil sees Huntly plans affecting electricity market
Genesis Energy's plans for the Huntly power station will have important consequences for the wholesale electricity market, infrastructure investor Infratil Ltd said.
Genesis Energy's plans for the Huntly power station will have important consequences for the wholesale electricity market, infrastructure investor Infratil Ltd said.
This Huntly power station represents about 10 percent of total national generation capacity and is the only major power station in New Zealand which still uses coal, although its units can also burn gas.
Genesis said in an investment statement for a bond sale that "whilst Genesis Energy currently plans on taking the first Huntly unit out of service in 2012 and the second unit in 2015, it is considering both short and long-term storage options for these units. Such storage options may reduce costs but still allow Genesis Energy to capture revenue by returning stored units to the market, if commercial market opportunities are available".
Infratil said that a change in the status of 500 MW of this plant would have important consequences for the wholesale electricity market.
On the one hand it would require replacement generation capacity, on the other hand if the plant was kept in storage rather than being dismantled Genesis would presumably want to pass on the associated cost for maintaining back-up when hydro electricity capacity is limited in dry years.
NZPA
Mon, 02 May 2011
Mon, 02 May 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Infratil sees Huntly plans affecting electricity market
14248