Big players in the energy space are putting forward a new 10-year deal they say will secure supply at Huntly Power Station.
Genesis, Mercury, Meridian and Contact have agreed to co-invest in a strategic energy reserve – pending Commerce Commission approval.
It includes adding up to 600-thousand tonnes of coal to current stocks.
Meridian Energy CEO Mike Roan told Kerre Woodham that although some may find it surprising, it’s more cost effective to import coal than it is to mine it in New Zealand.
He says the Huntly deal will give them 10 years of confidence in thermal fuel that they can use to continue investing in renewable generation.
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Kerre Woodham Mornings Podcast