NZ Windfarms, Vector, mighty river to talk wind opportunities

By NZPA

Thursday 11th October 2007

NZ Windfarms, lines company Vector and generator Mighty River Power are exploring ways to cooperate over the distribution of wind powered generation.

The announcement came the day the Government confirmed its energy strategy to reduce greenhouse gas emissions, focusing on renewable energy sources and effectively banning fossil fuel power plants unless they were needed for emergency back-up.

NZ Windfarms said it would discuss with Mighty River Power how the parties could work together, and expected to provide an update to shareholders in a few weeks.

"This potential association will enable NZ Windfarms to enhance the scale of its development activities, due to the additional development opportunities and resources available to us through a possible association with Mighty River Power," NZ Windfarms chairman Derek Walker said.

Electricity and gas network company Vector has a 19.9 percent shareholding in NZ Windfarms, which has entered into a joint venture to develop the Te Rere Hau wind farm near Palmerston North.

Mighty River Power chief executive Doug Heffernan said the company had invested in a number of wind farm development opportunities around the country.

"We have been examining the best approach for bringing these medium sized opportunities to commercial realisation and believe that combining our efforts with those of NZ Windfarms, could be a logical step in our wind strategy so that Mighty River Power can play its part in developing a sustainable energy future for New Zealand," Heffernan said.

Vector had to be granted a Commerce Commission exemption relating to its NZ Windfarms investment, as a company may own both generation and retail businesses, but generally needs permission to own both lines and generation, or lines and retail assets.

The commission said it understood Vector would not connect the wind generation assets to its own network or sell the electricity to its own lines consumers.

NZ Windfarms aims to sell sustainably generated electricity from smaller, high return wind farms close to the consumer.

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