"However, as a sustainable and responsible company we know the importance of robust and open debates on issues. It's clear to us, based on the concerns raised about the carp farm, that there's still a way to go to resolve questions about any proposed aquaculture ventures in the region."
Dave 'Didimo Dave" Cade, who was one of those leading the fight against the controversial farm, said he was "absolutely delighted" with the announcement.
"We're happy that Contact Energy have looked at the issue and listened to the local community," he said.
"Common sense has prevailed in that while we welcome business to Taupo we want business that will not risk the environment."
About 150 people had attended a public meeting in Taupo this week, with the majority fiercely opposing the idea for the grass and silver carp farm.
There has been strong opposition from fishing groups who say a carp escape could ruin Lake Taupo within a generation.
Richard Clark of Golden Harvest Aquaculture could not be contacted for comment today.