Hon Trevor Mallard
Acting Minister of Energy

7 March 2007

Minister welcomes Marsden B decision

Acting Energy Minister Trevor Mallard today welcomed an announcement from state-owned energy company Mighty River Power that it would not go ahead with its development of a coal-fired Marsden B power plant.

"It's another sign that the energy sector is already responding to the direction outlined in the draft New Zealand Energy Strategy," Trevor Mallard said.

Mighty River Power's announcement follows Contact Energy's decision that it will defer its planned thermal expansion, and invest $2 billion in renewable energy.

"It shows that the principles set out in the NZES make sense," Trevor Mallard said.

"We have proposed that all new generation should be renewable except where necessary to ensure security of supply. We believe this is the best direction for New Zealand to be heading, bearing in mind the current economics of thermal generation, and the urgent need to reduce greenhouse gas emissions.

"Mighty River Power has previously said that there are enough renewable options to meet power demand through to 2015, and they are following through on that logic with this announcement.

"I congratulate them on this decision."

ENDS

© Scoop Media