Meridian Energy Welcomes Carbon Tax Announcement
State-owned power generator and retailer Meridian Energy says the $15 per tonne carbon tax announced by the Convenor of
the Ministerial Group on Climate Change Pete Hodgson makes New Zealand¹s renewable energy resources more valuable than
ever.
And Meridian chief executive Keith Turner says the carbon tax will bring greater certainty to the planning for new
electricity generation in this country.
³New Zealand has a tremendous advantage internationally in its renewable energy resources. Our renewable generation
capacity is the cornerstone of our existing electricity supplies, and our untapped wind and hydro resources have the
potential to meet the increases in this country¹s energy needs for the next 15 years or so.
³Our renewable potential means we don¹t have to rush into developing any carbon-emitting electricity generation. We have
the luxury of leaving it to other countries who will be pressured by carbon taxes into developing and proving new
technologies to clean up carbon emissions in coal or gas-fired generation plants.²
Dr Turner says premature investment in major thermal generation plant runs the risk of being superseded by new
cleaner-burning technologies currently being developed which could make older plant uneconomic or obsolete.
³We have already seen the results of that kind of investment with the case of the Marsden B power station, which has
been in mothballs since it was built. That is an experience this country cannot afford to repeat.²
Dr Turner says the announcement means it is now possible to quantify the impact of the carbon tax on the economics of
any new energy developments.
³It is clear that the tax will introduce a price differential which will favour clean, non-polluting energy sources and
it demonstrates the wisdom of Meridian¹s move to focus solely on development of renewable electricity resources such as
wind, hydro and biomass.²