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New Zealand approves 10-year plan for power companies to use Huntly’s backup generation to ensure grid stability and lower prices.
New Zealand’s Commerce Commission has approved a 10-year plan allowing major power companies to access backup generation at Genesis Energy’s Huntly Power Station until 2035, ensuring grid stability during dry winters with low hydroelectric output.
The plan includes building a 600,000-tonne fuel reserve, initially using coal, and keeping Rankine Unit 2 operational.
In exchange, Contact, Meridian, and Mercury will pay annual fees and cover operating costs.
The commission found the move improves energy security and lowers wholesale prices, outweighing competition concerns.
Genesis will offer price hedges to third parties, though mandatory sales were not required.
The decision follows last winter’s supply crisis and aims to prevent future disruptions.
Nueva Zelanda aprueba un plan de 10 años para que las compañías eléctricas utilicen la generación de respaldo de Huntly para garantizar la estabilidad de la red y los precios más bajos.