Genesis Energy, the country's biggest energy retailer, will permanently retire a coal/gas-fired unit at the Huntly Power Station which has been in storage as renewable and thermal generation provide more than enough electricity to meet customer demand.
The Auckland-based company decided to retire the 250 megaWatt Rankine unit because it wasn't needed by the wholesale market when a dry period kept hydro-lake levels low. The unit has been in long-term storage to be rolled out in the event of a shortage, something that hasn't eventuated.
"Supply growth over the past few years has been strong, while customer and industrial demand growth has been relatively flat," said chief executive Albert Brantley. "As a result, we have taken the decision to retire a second Rankine unit, delivering further operational efficiencies to Genesis Energy."
The power company will keep two coal/gas units available at the Huntly plant and two other gas-fired units.
Genesis shares closed down 1c yesterday at $1.74.
