KEY POINTS:
The election of the National-led government clears the way for new gas-fired power stations, but there is unlikely to be a rush to build them.
Labour had imposed a 10-year moratorium on building thermal power stations for baseload supply as part of the drive to have 90 per cent renewable generation by 2025.
Although National supports the renewable target, in its key point of policy difference it pledged to do away with the thermal ban as part of a drive to shore up supply during winter.
Contact Energy gained approval before the ban to build two large combined cycle gas plants, one at Stratford and another at Otahuhu, but has deferred building them because of the cost of gas and uncertainty over long-term supplies.
A spokesman yesterday said this would remain the case, referring to figures revealed last month showing that at present prices and with the additional burden of carbon charging, gas-fired generation works out more expensive than wind power. The company was instead doubling its geothermal generation over the next five years as this was most cost effective.
The head of research at McDouall Stuart, John Kidd, said in the long-term new gas fired plants would be more viable but not right now.
"It's very difficult in the current climate to bank a new $500 million power station - you need a constant supply of gas. I don't think you'll get a rush of people willing to do it."
The E3P plant at Huntly was only built after the Government guaranteed gas supply. Any new plants could take up to three years to build.
Genesis Energy, which has a stake in the Kupe gas and condensate field to come on stream next year, says it has guaranteed supplies for the 480MW power station it wants to build near the Kaipara Harbour.
Kidd, an energy specialist, said doing away with impediments downstream - the moratorium - would provide incentives for explorers upstream to hunt for more gas.
Exploration in New Zealand was a risky proposition with a success rate of about one in seven for drilling projects.
