Tuesday, 30 March 2004 Media Statement

New electricity generation coming on

Substantial new electricity generation will be added to New Zealand's electricity system over the next few years, says Energy Minister Pete Hodgson.

"Meridian Energy's announcement yesterday that it would not proceed with Project Aqua has given all generators cause to review their plans for new generation," Mr Hodgson said.

"Alternative proposals will now be considered for the period post-2009, when the first power from Aqua would have come onstream. However in the shorter term a number of new projects are already confirmed."

The larger projects confirmed for the next few years are:
- Trustpower's expansion of its Tararua wind farm from 32MW to 68MW, on target for completion in May;
- The Government's 155MW oil-fired reserve generation plant at Whirinaki, Hawke's Bay, which is on track for commissioning by June;
- Genesis' new open-cycle gas turbine of up to 48MW at Huntly, due to be commissioned by the beginning of July;
- Meridian's 82-96MW Te Apiti wind farm, due to come on stream in late 2004-early 2005;
- The addition of a second 40MW plant to the Tuaropaki Trust's 56MW Mokai geothermal station, due by Autumn 2005;
- Genesis' 385MW "e3p" combined cycle gas turbine at Huntly, scheduled for commissioning in December 2006.

"In addition, a number of smaller generation projects will provide further useful new capacity in the system," Mr Hodgson said. "These include geothermal developments, increased efficiencies in existing hydro plant and cogeneration projects, which use waste heat from industrial processes to generate electricity."

"Altogether from this year until 2007 about 840MW of new capacity will be added to New Zealand's electricity system, on current plans. Many further proposals are under assessment within the energy sector and could proceed if their owners are satisified that there is sufficient demand to warrant the investment.

Given current growth rates, New Zealand needs about 150MW of new generation a year on average to keep up with demand for electricity.

Mr Hodgson released an updated table of information on new generation proposals held by the Ministry of Economic Development. The table is conservative, listing only projects that have been publicly confirmed and a few small projects that are rated by their owners as highly likely to proceed.

Attached: table of new generation proposals

NEW GENERATION PROPOSALS 1,2: INFORMATION HELD BY THE MINISTRY OF ECONOMIC DEVELOPMENT

Notes
1. In addition to the proposals listed, the Ministry also has information on less likely proposals, some of which may come forward.
2. As at 17 March 2004.
3. The year given is that of the first winter that the plant is expected to be available.
4. Reserve.

ENDS

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