Marsden B consent plans discontinued

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Media Release: 07.03.2007

Mighty River opts to discontinue Marsden B consent plans

Mighty River Power has decided not to proceed with seeking the consents necessary to enable recommissioning of the Marsden B power station, following a review of the company's potential generation developments and future market conditions.

Chief Executive Doug Heffernan said the company was now confident New Zealand could meet its energy supply requirements over the next decade without the Marsden B station.

"Fuel availability in renewables and domestic gas for the next decade is now in a fundamentally better shape than in 2001-2003, when our analysis showed a number of scenarios where Marsden B could be essential to provide security of supply, for example in dry years," Mr Heffernan said.

"Since that decision was made, we have commissioned additional geothermal capacity and successfully consented and begun construction on other projects, including the largest geothermal power plant development in over 20 years at Kawerau.

"As a result of this work and other developments within the industry we no longer see scenarios where Marsden B will be cost effective in the next decade or so.

"By 2020 we expect global technology advances will mean that a converted Marsden B would no longer be economically viable, therefore there is no longer any benefit in securing consents for this project."

Mighty River Power is committed to renewable energy as a first priority and currently operates a diverse generation portfolio, including hydro, geothermal and biomass stations. The company is presently constructing further additions to its geothermal assets and those owned in partnerships, and has identified opportunities for developing wind farms and small-scale, run-of-river hydro projects.

Mr Heffernan said maintaining a broad range of generating assets gave Mighty River Power the best chance of providing its business and residential customers throughout the country with an uninterrupted supply of energy.

"Our focus will continue to be on producing the energy New Zealand needs to grow and prosper in a way that is sustainable, both economically and environmentally, over the long term."

ENDS

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