Approval for power station

Genesis Energy's plan to build a gas-fired power station northwest of Auckland has moved a step closer with planning approval for the plant.

The taxpayer-owned company says it will now assess the various rules and conditions set by the Rodney District Council and wait until the appeals process is concluded before continuing work on the project's economics and specifications.

The certainty of gas supply will determine whether the 480MW station is built.

In its ruling, the council agreed to create a "thermal energy generation" zone between Helensville and Kaukapakapa.

The station faces strong opposition from some locals and the Green Party, whose co-leader, Jeanette Fitzsimons, has slammed the decision, saying it would result in much higher power prices.

"The Government's ideological commitment to market-led energy supply - the cause of many of our electricity problems - is allowing its own company, Genesis, to build a crazy power station," she said.

The Greens and other opponents say the plant could become dependent on important LNG which would expose New Zealand to international price that is linked to the rising price of oil.

However, explorers such as Todd Energy say the country has ample supplies of gas well into the next two decades.

Fitzsimons says Genesis has already spent $74 million of consumers' money pursuing the Rodney power station, even before it had its consents.

Genesis says the number of council rules would ensure the rural character is maintained within the zone and to ecological values enhanced by planting of native vegetation within the area.

In a separate plan, Genesis yesterday said it had signed agreements to begin wind tests for a possible medium-scale wind farm in northern Wairarapa.

The wind farm would mark a further step in diversification for the company, which generates the bulk of its power using coal and gas at Huntly.

It has signed agreements with landowners on several Wairarapa farms that will allow it to assess the wind generation potential of the site for the rest of the year.

Genesis Energy is also investigating the potential for new geothermal generation in the central North Island.

Besides Huntly, the company operates the Tongariro and Waikaremoana hydro power schemes and the 8.65MW Hau Nui Wind Farm, also in Wairarapa.