Banning New Thermal Generation not Good Policy

The Wellington Regional Chamber of Commerce has welcomed the government moves to overturn the ban on new fossil fuel generation.

“Renewable energy has many positive attributes and should be encouraged but, consistent with New Zealand Chambers of Commerce policy, we have always opposed the limitation on new thermal electricity generation because it puts New Zealand’s energy security at risk,” said Chamber CEO Charles Finny.

“Modern gas fired plants emit far lower levels of carbon than old coal fired stations yet the ban would have led to continuation of the latter.

“Coming on top of a ‘price-based mechanism’ to reduce carbon emissions, such as an emissions trading scheme or carbon tax, the ban is not good policy.

“Overturning the ban will also be consistent with lower electricity prices which, as the Reserve Bank pointed out last week, have been rising too fast.

“There are better ways for New Zealand to reduce its carbon emissions than by imposing such an ill-conceived blanket ban,” Mr Finny concluded.

ENDS

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