23 February 2007

Contact Energy makes right moves on renewable energy

Green Party Co-Leader Jeanette Fitzsimons has welcomed today's commitment by Contact Energy to postpone for 12-18 months its decision to build the combined cycle gas-fired Otahuhu C power station, and to focus on major geothermal and wind generation instead.

"This is a major step for Contact Energy, which has not previously invested in wind energy. This sort of commitment to wind and geothermal is essential for New Zealand to fulfil its potential to move over the next couple of decades to 100 per cent renewable forms of energy generation - mindful that alternative capacity will always be kept in reserve, in case of emergency or drought.

"As Contact Energy says, its 12-18 month stay of decision on Otahuhu C will allow time for a price on carbon to be developed, alongside a market mechanism to encourage renewables.

"Contact Energy's decision underlines how important it is for the Government to act this year to put a price on carbon throughout the market. Otherwise, the taxpayer will be left to pick up the tab in 2012 - for the cost difference between our actual emissions and our Kyoto commitments - and not the energy sector.

"During any debate on energy investment, there will always be calls to change the consent process established under the Resource Management Act. The Greens acknowledges that the RMA process can be slow and arduous. We will therefore support any improvements to that process, so long as they preserve the rights of communities to have a meaningful input."

ENDS

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