New $100m power plant
A new $100 million natural gasfired electricity plant is set to open in Taranaki in mid-2020.
The plant will be built by Todd Generation, a branch of Todd Corporation, and is expected to bring power to more than 70,000 homes.
Resource consents for the 100 megawatt plant were granted by Taranaki Regional Council in 2013, tenders to build and operate the plant were sought in 2015, and construction will be begin early next year.
The plant, made up of two 50 megawatt GE gas turbines, is designed to meet electricity demand at peak periods, as well as provide a base load when wind or hydro generation was low.
‘‘This project represents a significant investment in the security of New Zealand’s future energy supply,’’ Todd Generation general manager Tim Cosgrove said.
‘‘Fast start natural gas-fired plants, known as peaking plants, provide a reliable source of power to back up intermittent renewable generation.’’
Todd Generation intended to use local resources during the construction phase and once operational, the plant would create up to six new jobs in Taranaki, the statement said.
The Junction Rd power plant, seven kilometres south of New Plymouth, will be supplied from the First Gas pipeline, with a connection to the national electricity grid.
An access road and building platform for the plant have already been constructed at the Junction Rd site.
Cosgrove said they had made efforts to minimise environmental effects and retired farmland and planted native bush will screen the plant.
Similar plants have been built in Taranaki, at Stratford by Contact Energy, and by Todd Energy at the company’s McKee production station, inland from Waitara.
New Plymouth National MP Jonathan Young said he was pleased with the announcement.
‘‘I’m very encouraged to hear Todd are progressing with this project.
‘‘It’s really important to have peaker plant stations in New Zealand.
‘‘If Huntly is decommissioned there is an opportunity for this plant to replace that in terms of generation.’’
Young said it was a critical piece of infrastructure.
‘‘The problem with wind is there are days when there is no wind at all so this is an opportunity to fill in the gaps as a back up.’’
Taranaki Chamber of Commerce chief executive Arun Chaudhari said it was fantastic news for the region.
‘‘It’s good to see the Minister of Energy sees a role for gas as a transition fuel. They didn’t see that but now we are investing $100 million in a peaker power plant that will use gas.’’
Chaudhari said the plant gives certainty of power supply and was great news for jobs in Taranaki. ‘‘They’ll also be using a lot of local resources wherever possible. It will create additional jobs and in the construction phase there will be a lot more people employed.’’