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

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news