Genesis says Unit 5 outage will cost $20m-$30m

Genesis Energy's Huntly Power Station. Photo / NZME

Genesis Energy said an outage at its Unit 5 combined cycle gas plant at Huntly would cost $20-$30 million.

Unit 5, which usually delivers continuous or baseload power to the electricity grid, has been out of action since June 30.

An investigation revealed a failure of one of the unit’s three circuit breakers.

Specialist parts, including some from overseas, are required for repair, the company said.

Genesis had earlier advised that it expected Unit 5 to return to service by August 31, but it has now pushed that date out to May next year.

“High hydro storage, alternative plant availability and wholesale electricity market conditions have combined to mitigate the financial impact of the outage to date,” Genesis told the NZX.

“Genesis is actively pursuing options to return the unit to service earlier and has material damage and business interruption insurance cover in place,” it said.

“The financial impact of this event, based on current market conditions, plant and fuel availability, and mitigating factors is estimated to be in the range of $20m to $30m,” Genesis said.

Genesis is due to report its annual result on August 24.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.