Announcing its annual result, Contact Energy has announced that it is focussing on geothermal as its preferred generation technology with Chief Executive Dennis Barnes saying, “The completion of the Te Mihi geothermal power station will provide Contact Energy with additional lower cost generation.”
The company announcement was:
Following a thorough review of the economic, market and regulatory conditions, Contact has reprioritised its wind power development portfolio. Contact has decided to exit the HauÄuru mÄ raki wind generation development on the Waikato coast and will not proceed in the foreseeable future with the Waitahora wind generation development project near Dannevirke in the Tararua district. “The development of large projects, such as power stations, is a lengthy and capital intensive process. While it is disappointing that we have not been able to develop these resources, the current supply and demand outlook and the competitiveness of the Tauhara geothermal development means it would be imprudent to continue to hold the full value of these assets,” said Mr Barnes.’