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Wind farm cancellation highlights problems

Hon Nick Smith - National Party Energy spokesman

4 May 2006

Wind farm cancellation highlights problems in power policy

TrustPower's decision to cancel a major wind farm in Marlborough highlights the mess in the Government's energy policies, says National Party Energy spokesman Nick Smith.

"New Zealand needs more power, and we particularly need more generation in the top of the South Island, but the Government's Kyoto and transmission policies need revising if we are to get new investment.

"The Kyoto policies are a mess, with nobody knowing what the Government is intending to do and emissions from electricity generation at record levels. The sector urgently needs certainty.

"The Government's transmission policy model hammers South Island generators and is a real disincentive to developing new renewables here.

"The Government needs to review the transmission system to ensure the right signals are given to new generation in the South Island and to change the trend of more and more power being produced from fossil fuels," says Dr Smith.

ENDS


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