Genesis to retire stored coal unit
Genesis to retire stored coal unit
By Paul McBeth
June 29 (BusinessDesk) - Genesis Energy, the
country's biggest energy retailer, will permanently retire a
coal/gas fired unit at the Huntly Power Station which has
been in storage as renewable and thermal generation provide
more than enough electricity to meet customer
demand.
The Auckland-based company decided to retire
the 250 megawatt Rankine unit because it wasn't needed by
the wholesale market when a dry period kept hydro-lake
levels low. The unit has been in long-term storage to be
rolled out in the event of a shortage, something that hasn't
eventuated.
"Supply growth over the past few years has been strong, while customer and industrial demand growth has been relatively flat," chief executive Albert Brantley said. "As a result, we have taken the decision to retire a second Rankine unit, delivering further operational efficiencies to Genesis Energy."
Genesis placed its first unit in
storage in 2012, and has put more pressure on the Huntly
plant to perform after previous management kept it available
as a back-up to prevent winter black-outs during low
rainfall.
The power company will keep two coal/gas
units available at the Huntly plant and two other gas-fired
units.
Genesis shares were unchanged at $1.75, and have dropped 19 percent this year.
(BusinessDesk)