12 Aug 2011

Genesis to shut down Huntly unit in 2013

12:50 pm on 12 August 2011

Genesis Energy says it still plans to shut down one of the four units of its Huntly plant by the beginning of 2013 as new, cheaper generation comes on stream.

In its annual statement of intent, which sets out priorities over the next few years, the publicly-owned electricity generator and retailer also said its second unit would be put into storage at the end of 2014.

Genesis said it was still seeking commercial hedge arrangements for Huntly, which could change that plan, and it intends lodging resource consents for the coal-fired plant which runs out in 2013/14.

The value of Genesis's assets rose 31% to $2.2 billion after buying the Tekapo A and B power stations from Meridian Energy in a Government-mandated swap.

The company expects to make an underlying full year profit of $40 million.