New Zealand’s power system requires some “modest investment” as of 2018 to shore up its security of supply due to the imminent closure of several thermal-energy plants, and it will need “considerably more investment” from 2022, once Genesis Energy’s coal-fuelled power stations in Huntly on the North Island are decommissioned, according to
national grid operator Transpower.
Analysts say that New Zealand power companies have scaled back their investment in new generation and boosted their returns to shareholders, as demand has remained relatively flat in recent years.
Transpower (
www.transpower.co.nz) says that the Mercury Group’s capital-spending programme this year will be about 115 million NZ dollars, with investment focused on the Whakamaru and Aratia hydro stations, while Meridian Energy expects to spend 41 million NZ dollars over the next seven years refurbishing its three Ohau hydro-stations.
Transpower general manager John Clarke said in a statement: “Our latest assessment confirms a slight risk in meeting the energy needs of the country from 2018 onwards, if no further generation is commissioned. This would be mitigated by a modest investment in generation to meet potential demand growth.”