Generation: Asset Allocation Process Dragging On
August 31st, 2010
The asset swap process between Meridian and Genesis is reported to be dragging on. The electricity reforms announced last December require Meridian to make over the Tekapo A and B hydro stations to Genesis, while contracting for a slab of “North Island” power for its own use. Indications are the swap will go ahead as planned but, as they say, “it’s complicated.”
Meanwhile, Contact Energy is playing down suggestions it’s keen to buy the Whirinaki unit assigned to Meridian in the swap arrangement. Contact MD David Baldwin says the issue for Whirinaki is what fuel is it best to run on, and who has the most fuel flexibility? The answer to the latter is clearly Contact, with its Ahuroa gas storage facility coming on stream and running the plant on diesel is “not optimal.” However, he says there have been “no specific discussions” about buying the Whirinaki or its relocation from north Napier, although there’s general agreement that’s the wrong place for it.
Copyright © Media Information Ltd
NZ Energy & Environment Business Week
Amalgamated Dairies