Plenty of new generation on the way claims Hodgson

By CHRIS DANIELS

There's plenty of new power generation on the way, says Energy Minister Pete Hodgson, as he yesterday revealed details of new stations planned.

Hodgson has come under fire for what opponents claim is a dearth of investment in generation.

Detailing all the planned new generation, Hodgson said New Zealand needed around 150MW of new generation every year, to keep pace with economic and population growth.

By comparison, the Huntly power station, New Zealand's largest thermal plant, can make 1000MW, while the Clyde Dam can generate 432MW.

Normal power demand would be met with the planned new generation, said Hodgson. What was a problem was "special generation" that could be used only in dry years.

The risk of power cuts this year was because of a fuel shortage, not a lack of generation capacity, he said.

An opportunity this year to use fuels other than water and gas, such as oil and diesel, had been largely lost because generation plant able to use them had been decommissioned.

Around 250MW is expected to come on stream next year, most of this from Contact Energy's plan to install turbines at either Otahuhu or Whirinaki, that will run on distillates, a kerosene-type fuel.

Ready for winter 2005 will be a further 200 or so megawatts, coming from a combination of wind power and geothermal developments. It is not until 2006 that a new gas-fired thermal power station is expected to be built, at Huntly.

By 2006 it is hoped that a suitable replacement for the depleting Maui gas field will be on stream, with the Pohokura field likely to be used.

Hodgson's figures do not take into account old generation that may be retired in the next 10 years.

Once Genesis Power builds its new gas-fired station at the Huntly site, it will be likely to use the existing less-efficient Huntly station less.

One of the challenges for the Government in a new energy policy is to make sure that old, inefficient thermal plants such as that in New Plymouth and Huntly, are not scrapped, but kept in reserve for dry years.