Major Electricity Users Take Renewable Generation Project To Market

“Major electricity users have this week gone to market with a project to stimulate the development of new renewable electricity generation in New Zealand,” says John Harbord, chairperson of the Major Electricity Users’ Group.

“The project aims to accelerate the development of renewable electricity projects in New Zealand through providing a long term, stable and therefore bankable commercial platform for projects to be launched off, backed by companies who have the balance sheets to do so.” Says Harbord.

“In developing and testing the project, we have found that there is a high amount of interest amongst generators and the participating buyers are confident it is worth proceeding to the stage of requesting proposals from potential suppliers.

“Participating companies are now ready to go to market.

“A request for proposals was released last Monday, 20th July, with responses due by 31st August.

“Participating companies will look to make final decisions on successful bids late September or October, depending on the number of responses.”

“The project is about large energy users stepping up to provide leadership in emissions reductions, with the goal of delivering real reductions in carbon emissions over the next decade and at the same time realising a commercial win-win for purchasers and sellers of long-term renewable electricity contracts.

“Participating companies are Fonterra, New Zealand Steel, Oji Fibre Solutions, Pan Pac Forest Products and Ballance Agri-nutrients.

“These businesses currently purchase approximately 2,000 GWh of electricity every year. By stimulating new renewable generation this project has the potential to reduce CO2 emissions within New Zealand by up to 500,000 tonnes per annum.

“The project is part of the commitment of major electricity users to find meaningful and practical solutions to our carbon reduction challenge and bring these forward, as well as encourage new entrants into the renewable generation market, underpinned by the support of significant electricity users.”

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