Coal power to continue till 2022

New Zealand will continue to get a small percentage of its energy – and thusly fuel for EVs from coal for an additional four years.

Genesis Energy and other electricity generators have entered into contracts that will keep the two coal/gas fired Rankine Units at the Huntly Power Station available to the electricity market until December 2022, an extension of the previously announced closure date of 2018.

Genesis says it remains committed to removing coal-fired generation from its generation fleet in the future.

“However, recent changes to the market, the time required to develop new generation, continued uncertainty over the future of the electricity-intensive smelter at Tiwai Point, and increased dry year risk resulting from other recent thermal plant retirements has indicated that a longer transition period than originally expected is required.”

Genesis Energy’s chief executive, Albert Brantley, says the wholesale electricity market had changed significantly since the company’s August 2015 announcement of the planned 2018 retirement of the Rankine units.

“It has become clear that the Rankine units are required longer than we previously anticipated.

“As a result of the commercial arrangements with other market participants, we are able to provide an extended transition period that will reduce electricity supply risk while uncertainty around the Tiwai smelter remains.

“It can be expected that during this period Genesis Energy and other generators will explore the development of a range of lower cost and lower emitting generation options,” Brantley says.