Genesis to retire stored coal unit
The company decided to retire the 250 megawatt Rankine unit because it wasn't needed by the wholesale market when a dry period kept hydro-lake levels low.
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Hawke’s Bay
Genesis Energy [NZX: GNE], the country's biggest energy retailer, will permanently retire a coal/gas fired unit at the Huntly Power Station, which has been in storage, as renewable and thermal generation provide more than enough electricity to meet customer demand.
The Auckland-based company decided to retire the 250 megawatt Rankine unit because it wasn't needed by the wholesale market when a dry period kept hydro-lake levels low. The unit has been in long-term storage to be rolled out in the event of a shortage, something that hasn't eventuated.
"Supply growth over the past few years has been strong, while customer and industrial demand growth has been relatively flat," chief executive Albert Brantley said. "As a result, we have taken the decision to retire a second Rankine unit, delivering further operational efficiencies to Genesis Energy."
Genesis placed its first unit in storage in 2012, and has put more pressure on the Huntly plant to perform after previous management kept it available as a back-up to prevent winter black-outs during low rainfall.
The power company will keep two coal/gas units available at the Huntly plant and two other gas-fired units.
Genesis shares were unchanged at $1.75, and have dropped 19% this year.
(BusinessDesk)
Paul McBeth
Mon, 29 Jun 2015
Mon, 29 Jun 2015
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