Ann: GENERAL: MRP: Renewables growth behind closure of Southdown

• Release Date: 24/03/15 08:33
• Summary: GENERAL: MRP: Renewables growth behind closure of Southdown
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					MRP
24/03/2015 08:33
GENERAL
PRICE SENSITIVE
REL: 0833 HRS Mighty River Power Limited (NS)

GENERAL: MRP: Renewables growth behind closure of Southdown

Renewables growth behind closure of Southdown thermal station

Mighty River Power today confirmed that its gas-fired Southdown power station
will close at the end of the year in response to significant growth in
renewable generation in New Zealand.

Chief Executive Fraser Whineray said the 140MW Southdown station in Auckland
had played a very small role in Mighty River Power's portfolio in past two
years, representing just 5% of the Company's generation, and less than 1% of
New Zealand's total electricity demand. The plant has high running costs
compared with large renewable electricity plants, such as hydro and
geothermal.

The Southdown station is expected to close on 31 December 2015, and will then
be dismantled for sale overseas. The Company has been working closely with
Southdown's 17 employees to explore future opportunities with them.

Major investment in renewable electricity generation in New Zealand over the
past decade has "squeezed out large volumes of gas and coal-fired generation
out of New Zealand's electricity mix, because they're less economic to run,"
Mr Whineray said.  In total there has been a reduction of more than 4,000GWh
of thermal fuel commitments since 2013, representing more than 10% of the
total generation in New Zealand. This reflects the renewable advantage of New
Zealand - one of the world leaders.

Mighty River Power  has invested more than $1.4 billion in reliable base-load
geothermal, including the completion of three major geothermal power plants
since 2008.

This investment has strengthened and grown the Company's generation base,
with geothermal now making up over 40% of the Company's portfolio and
complementing the Waikato Hydro System - the fastest peaking plant in the
North Island - located close to Auckland, the country's largest demand
centre.

"Mighty River Power has demonstrated through prolonged periods of very dry
conditions over the past two financial years, when hydro inflows have been at
record low levels, the resilience that comes from having two large and
complementary renewable fuels to draw from, combined with a liquid hedge
market and a strong national grid."

The Southdown station (excluding land) has a historic cost book value of
approximately $50 million and Mighty River Power will confirm any accounting
impacts in its normal financial reporting process.

ENDS

For further information:

David Glendining
Head of Communications
T 0272 105 337

Anna Hirst
Head of Investor Relations
T 0275 173 470
End CA:00262195 For:MRP    Type:GENERAL    Time:2015-03-24 08:33:15