KEY POINTS:
Genesis Energy's new gas turbine at Huntly has helped cut greenhouse gas emissions from electricity generation.
Ministry of Economic Development figures show that for the December quarter emissions were almost 10 per cent less than a year before despite thermal generation - burning of fossil fuel - being
nearly 17 per cent higher.
During the December quarter, electricity generation produced 1.49 million tonnes of carbon dioxide-equivalent emissions.
The reduction in CO2 emissions is attributed to Genesis Energy's $520 million combined cycle turbine, reducing its reliance on burning coal at Huntly.
Compared with the December 2006 quarter, electricity generated from gas was up by more than 55 per cent, while power generated by coal was down by more than 45 per cent.
Emissions from thermal electricity generation account for about a quarter of the energy sector's.
Genesis said its figures showed a 27 per cent reduction in emissions from Huntly between July 2007 - a month after e3p was fired up - and January.
When e3p was installed, the state-owned enterprise said the turbine would reduce CO2 emissions by a million tonnes a year from Huntly.
The turbine provides enough electricity to power up to 300,000 new homes. As well as getting its gas from onshore Taranaki fields, it will be supplied by the offshore Kupe field due to come on stream next year.
The ministry figures show wind generation up more than 50 per cent year on year, although it accounts for only 2.8 per cent of generation.
Coal production was down to the lowest level in five years and imports, nearly all Huntly bound, down 40 per cent. Gas production in 2007 was up by about 10 per cent, to 181 petajoules, compared to 2006, mainly because of the Pohokura field coming online.
The highest level of crude oil and condensate production was recorded in the December quarter, as the Tui field started production in July.
The field was performing strongly with production now averaging more than 40,000 barrels a day.
Even with Tui producing for only half the year, annual production was the fourth highest on record, at 86 petajoules, with 1 million barrels equalling about 5.7 petajoules, the ministry said.
WHOLESALE PRICES INCREASE AFTER CONCERN ON LAKE LEVELS
Wholesale spot power prices rose sharply last week on concerns over lower inflows and falling hydro lake levels.
Prices at the North Island reference point of Haywards rose 34.1 per cent to an average $135.02 per megawatt hour (MWh), while at the South Island reference point of Benmore prices were 38.3 per cent higher, at an average $125.42 per MWh.
"One of the reasons is that the inflows have tapered off. That's not to be unexpected but the fact that they've been low for the last 10 days ups the ante," an analyst said.
National inflows fell to 50 per cent of average over the week to Tuesday, compared with 62 per cent in the previous week.
In the South Island, where virtually all power is produced by hydro power stations, inflows were 49 per cent of average compared with 61 per cent the previous week, while North Island inflows fell to 48 per cent of average from 62 per cent.
The analyst said the ongoing outage at Contact Energy's 357MW Stratford plant, which is due to be out until early next week for planned maintenance, was also adding upward pressure on prices. Wholesale market operator M-Co said stored energy over the past seven days fell 6 per centage points to 79 per cent of average.
National demand rose 3.2 per cent to 103,237MW.
About two-thirds of the country's electricity comes from hydro power.
- REUTERS
