By Stephen Nakrosis
Four New Zealand electricity generators are looking at the potential to extend the Huntly Power Station Rankine Units beyond their scheduled retirement dates, in an effort to improve the nation's energy security.
New Zealand's Genesis Energy said it entered into a non-binding agreement with Mercury NZ, Meridian Energy, and Contact Energy to investigate the potential for the facility's units to continue enhancing the electricity system's security, as the country sets about adding more intermittent wind and solar generating capacity.
One of the Rankine units is slated to retire in 2026, with two others expected to be retired early in the next decade.
The move comes in response to market conditions during the winter of 2024, when New Zealand experienced a faster than expected decline in its natural gas supply, along with low hydro lake and low wind conditions, Genesis said.
The commercial structure, which may include a strategic fuel reserve, is still being worked through, Genesis said. It added new arrangements could be in place for 2026, subject to regulatory approval.
Huntly power station has a capacity of 1200MW, Genesis said.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
February 11, 2025 15:09 ET (20:09 GMT)
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