NZ coal power generation gone by 2018

Coal-fired generation at Huntly Power Station will cease by 2018. Photo: Christine Cornege

Genesis Energy has announced that its last two coal-burning electricity generators at the Huntly Power Station will be permanently withdrawn from the market by December 2018, signaling the end of large scale coal-fired generation, and associated carbon emissions, in New Zealand.

The closure will knock five per cent off the total CO2 emissions of New Zealand.

It will move the New Zealand electricity generation sector closer to its 90% renewable target.

Genesis Energy Chairman Dame Jenny Shipley said, "While the Huntly Power Station has been, and remains, a great asset for Genesis Energy, the Board has taken the decision to retire the remaining Rankine Units. New Zealand's changing electricity market has seen improvements in the management of dry year events, along with a significant decrease in coal-fired generation, and by 2018 the two coal units will no longer be required unless market conditions change significantly."

Chief Executive Albert Brantley said the Company has been on track to retire the four coal/gas fired Rankine units since 2009.

"The development of lower cost renewable generation, principally wind and geothermal, investment in the HVDC link, and relatively flat growth in consumer and industrial demand for electricity have combined to reinforce the decision to retire the remaining Rankine units, which will deliver further operational efficiencies to Genesis Energy," he said.

Electricity generation will continue at the Huntly site for years to come from the two existing gas-fuelled units, able to produce 450MW. At its peak, Huntly Power Station could produce over 1000MW.

"We expect this decision to produce operational and capital cost savings of approximately $20 to $25 million per annum," Mr Brantley said.

Genesis Energy's coal supply contract with Solid Energy expires in June 2017. With around 700,000 tonnes of coal in its own stockpiles, ongoing coal deliveries until June 2017 and ample supplies of natural gas, Genesis Energy has no fuel availability issues at the Station. The two units will continue to burn scheduled coal deliveries and coal stockpiled at the Station until coal is exhausted and will then operate solely on gas, if required, for the remainder of their operational life.

Greenpeace NZ Campaigner Simon Boxer says it's an "embarrassment" that businesses are now leaving the leaders of our country in the dust when it comes to moving away from dirty energy.

"The announcement by Genesis Energy is another good piece of news for anyone wanting their kids to have a future without runaway climate change," he says.

"But it's something that our government should be leading on. It's just another example of John Key and his cronies dropping the ball for New Zealanders. They don't have their finger on the pulse of the global move away from fossil fuels."

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