Project to bring in more renewable electricity

New generation of renewable electricity is being sparked by the Major Electricity Users’ Group.

“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,” group chair John Harbord says.

The move could have a spin-off to benefit EV charging too.

It 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, Harbord says.

“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 on July 20, with responses due by August 31.

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

These include Fonterra, New Zealand Steel, Oji Fibre Solutions, Pan Pac Forest Products and Ballance Agri-nutrients.

These businesses purchase about 2000GWh of electricity every year, Harbord says.

By stimulating new renewable generation this project has the potential to reduce CO2 emissions within New Zealand by up to 500,000 tonnes annually, he adds.

“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.”