A power plant touted as the solution to winter electricity shortages may be dismantled.
The 155MW diesel-powered Whirinaki power plant in Hawkes Bay was opened after the 2003 power shortages, to generate power in an emergency.
But it was widely criticised as being counter-productive, expensive, and using the wrong sort of fuel.
Under law changes going through Parliament now, the plant will be transferred to Meridian Energy from October.
Radio New Zealand understands the company is considering dismantling the generator and trucking it out of Hawke's Bay, closer to Auckland.
It is also considering using its electricity solely for industrial clients.