CEN
17/08/2015 08:43
GENERAL
PRICE SENSITIVE
REL: 0843 HRS Contact Energy Limited
GENERAL: CEN: Contact to close Otahuhu power station
MEDIA RELEASE
For immediate release
Monday 17 August 2015
Contact to close Otahuhu power station as NZ moves to greater share of
renewable electricity generation
Contact Energy Limited (Contact) today confirmed its 400MW Otahuhu B power
station will close on 30 September 2015.
"We have been considering the future of our gas-fired power stations for some
time. Our decision to close our Otahuhu B station reflects the growth in
renewable electricity generation, such as the new Te Mihi geothermal power
station, which has effectively replaced Otahuhu in Contact's portfolio" said
Dennis Barnes, Contact's Chief Executive.
Contact last month sought expressions of interest for the purchase of
generation from the Otahuhu station and the outcome did not support continued
operation of the plant. The recent announcement of a proposed closure of the
Huntly power station was in line with Contact's expectations and therefore
did not impact on the Otahuhu decision. The closure of Otahuhu provides
clarity and time for the market to make decisions.
"The role of thermal plant in New Zealand's electricity future is to support
renewable generation and the growth of new technologies. This is best met by
fast-start, gas-fired peaking power stations rather than large baseload
plants" Mr Barnes said. Contact's Ahuroa gas storage facility, connected to
its Stratford generation site, provides options that can support the ongoing
transition to reduced thermal operations in New Zealand. To support this
transition Contact intends to proceed with life extension works that will
provide an additional 24,000 operating hours at its Taranaki combined cycle
plant.
"I'd like to acknowledge the work our team at Otahuhu have done in recent
years to adapt the operation of the station to better meet the changing needs
of the market while we've considered the future of the plant. Our decision to
close is no reflection on the team's professionalism, which has seen the safe
operation of the site through a three-year period of uncertainty. We have
rewarded our team's commitment and supported them through this time and will
continue to do so during the closure process, including redeployment
opportunities where suitable roles are available," said Mr Barnes.
ENDS
Investor enquiries: Fraser Gardiner 021 228 3688
Media enquiries: Shaun Jones 021 204 4521
End CA:00268497 For:CEN Type:GENERAL Time:2015-08-17 08:43:16
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