Coal fired generation heading for the back burner

The government is welcoming Genesis Energy's statement today that it intends progressively retiring the coal-fired Huntly power station, for reserve use in drought years.

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The government is welcoming Genesis Energy's statement today that it intends progressively retiring the coal-fired Huntly power station, for reserve use in drought years.

"I'm delighted to learn that the E3P combined cycle gas turbine that's recently come on stream has allowed Genesis to cut back on the coal it's burning at Huntly," Energy and Climate Change Minister David Parker said.

"The company says its carbon dioxide emissions profile has reduced by almost a third during July, due to the new high efficiency gas turbines.

"What's more, Genesis says that it now intends to progressively move Huntly to drought year reserve capacity.

"This is a great news for the environment, as cutting greenhouse gas emissions is vital if we are to make a difference to climate change.

"It also means we will have greater energy reserves for drought years when hydro lakes drop to extra low levels.

"I will be urging the Electricity Commission, Genesis and other market participants to progress their consideration of how this additional dry year reserve supply can be best incorporated into the system."

David Parker said the government's draft Energy Strategy had a strong focus on renewable energy, which was affordable for New Zealand, and the best choice for a sustainable economy and environment.

"Today's statement from Genesis follows moves from energy companies like Contact and Mighty River Power, to turn their focus away from fossil fuel generation, and towards renewable energy sources like wind and geothermal."

"This shows that government leadership is making very significant headway on improving sustainability and tackling climate change."