Energy explorer Greymouth Petroleum is offering major power users the chance to generate electricity in their own back yard rather than buy all their power from the established generators.
Greymouth Petroleum has bought four generators from a mine site in Western Australia and says they can be moved anywhere on
the North Island in about two weeks.
The 3.2-megawatt generators - to be powered by Greymouth Petroleum's gas - could produce enough power for 16,000 households but will most likely be used by industrial users. Potential customers are any industries that need security of power supply and heat, as each generator can produce 2 megawatts of heat along with electricity.
The energy company is aiming to sign up customers to fixed-priced contracts for power generated on their own premises.
"There are a lot of big consumers that are heavily dependent on electricity for manufacturing and production, and with the grid needing upgrading it makes blackouts a very real threat for them," said Lara Walker of Greymouth.
Ralph Mathes, chief executive of the Major Electricity Users Group, said price was likely to be the most important consideration for power users. Greymouth Petroleum could potentially offer cheaper power because it would be using its own gas for generation.
Mathes said the scheme would test the rules of the power market.
"The electricity market regulations themselves haven't yet been given a good shake to make sure that new entrants like Greymouth Petroleum can get in," he said.
He said another test would be to see if Greymouth was able to negotiate agreements to have other generators supply it with power at times when its own plant was not working.
