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Home / New Zealand

More power on way, but not yet

7 May, 2003 01:52 PM3 mins to read

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By KEVIN TAYLOR

More power stations are on the way and the Government is preparing to release information on future projects - but it will not help this winter's looming power shortage.

Energy Minister Pete Hodgson told Parliament yesterday another generation project would be announced today by state-owned generator and retailer Meridian Energy.

A Meridian spokesman confirmed an announcement was coming today but refused to give details.

Batting off opposition attacks in the House that the Resource Management Act was holding up new generation, Mr Hodgson said consents had been granted for 1300 megawatts of new generation since 2000.

The projects would generate as much power as three Clyde dams.

The Government has been criticised in Parliament for two weeks about why it has been caught short with a looming winter power crisis only two years after the last one.

The country has been told to save 10 per cent power or face blackouts this winter. On Tuesday savings reached 4.1 per cent, the highest daily total so far.

The act has been targeted as a reason for roadblocks being put in the way of new power projects.

But Mr Hodgson indicated he was about to hit back at the critics, telling the House he would release details on generation projects in the next few days.

A spokesman for Mr Hodgson said later he would be releasing a list of current and planned generation projects in the next few days.

"It's a matter of trying to get the information out to let people know there's going to be quite a bit of generation built in the next few years, and what it all adds up to."

Meridian is already looking at a major project, dubbed Aqua, on the lower Waitaki River between Oamaru and Timaru.

The project, expected to cost at least $1.2 billion, is to build a 60km canal along the banks of the river to generate 570 megawatts. Meanwhile, Mr Hodgson announced grant and loan schemes as part of the 2003 Budget to be run through the Energy Efficiency and Conservation Authority.

Two grant schemes would cover low-income homes and use of solar water heating, while a loan scheme would target public sector organisations.

The "EnergyWise Home Grants" scheme would insulate the homes of low-income families, to save on power bills. About 4400 homes would be retrofitted with insulation in the 2003-04 year.

Mr Hodgson said the Government had also committed $200,000 to a solar hot water grants scheme to help the solar industry increase the number of systems installed.

"In the next year, around 400 solar water heaters will be installed under this scheme."

Funding for a Crown energy efficiency loan scheme would double in the Budget to $2 million a year.

The scheme offers loans to public sector organisations for energy efficiency improvements.

Herald Feature: Electricity

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