Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Carbon tax axe will boost Australian renewables: Trustpower

Carbon tax axe will boost Australian renewables, says Trustpower

By Pattrick Smellie

July 25 (BusinessDesk) - Electricity generator Trustpower believes the repeal of Australia's carbon tax will be great for renewable energy, which is likely to be heavily favoured under the federal government's Renewable Energy Targets scheme.

Bruce Harker, chair of the Tauranga-based electricity generator and utilities retailer told shareholders at the annual meeting he expected the RET is "likely to be supported as the main mechanism to do the heavy lifting in reducing the carbon intensity of Australia's electricity generation sector.

The company is also on the verge of commissioning Stage 2 of the 370 Megawatt Snowtown wind farm, in South Australia, two months ahead of schedule and under budget, promising A$42 million of free cashflow in a full year of operation.

Trustpower has also paid $72.2 million in recent months for three hydro schemes and two windfarms in New South Wales, with total installed generation capacity of 106.6MW, with an expected $8.5 million contribution to earnings before interest, tax, depreciation, amortisation and movement in the value of financial instruments in their first year.

In New Zealand, Trustpower sees little opportunity to develop any but "small high return enhancement options" for existing hydro schemes, and is concentrating on irrigation opportunities in Canterbury, to which hydro enhancements could be added, and a brand refresh backed by new bundling of electricity, gas and telecommunications offerings, and a coming roll-out of smart meters to households.

Harker said "unexpectedly low load growth" since the global financial crisis in 2008 meant consumers should expect "there will be a period of retail prices coming in at less than inflation for the next couple of years", with the only upward pressure coming from "some costs to be covered for (national grid operator) Transpower and the distribution networks for delivering this power."

However, wholesale electricity prices were soft and "have risen only just enough to support" the rush of geothermal and wind projects that have come to market recently, producing electricity more cheaply than natural gas, which experienced a price spike in the 2000s.

Harker argued the retail electricity market was highly competitive and that "all electricity retailers, regardless of size or whether they own generation", could purchase contracts for the supply at the current lower wholesale market prices, and "make a competitive retail price offer to customers."

He repeated the view, expressed at last year's annual meeting when the Labour and Green parties' single buyer reforms were freshly announced, that "there was never a case for radical industry restructuring and it is out expectation that the benefits of a highly competitive structure will become easier for all to see and understand over the next few years."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news