Genesis to close New Zealand’s remaining coal power plants

• 9 years ago (2015-08-08)
• Junior Isles

North America 1021 Renewables 776

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Genesis Energy, the Wellington and Sydney dual-listed electricity generation company, is set to shut down its last two coal-burning generators by December 2018, due to more economical supplies of cheap renewable energy and a lowered demand.

Dame Jenny Shipley, Genesis Chairperson, said that the two coal power plants at Huntly, in the North Island, would no longer be needed “unless market conditions change significantly.” The plants themselves have only been used intermittently for the last several years.

Genesis chief executive, Albert Brantley, said that the company has been looking to close the portfolio of four coal and gas-fired Rankine (steam) cycle generators since 2009, with two having already been retired. Complete shutdown of all four is set to earn the company around $17 million a year.

Brantley went further to say: “The development of lower cost renewable generation, principally wind and geothermal, investment in the HVDC link, and relatively flat growth in consumer and industrial demand for electricity have combined to reinforce the decision to retire the remaining Rankine cycle units, which will deliver further operational efficiencies to Genesis Energy.”

The High Voltage Direct Current (HVDC) system links the North and South island grids across the Cook Strait.

Genesis also said the closure would move New Zealand closer to its 90 per cent renewable target.