"Renewables are by far the most economic proposition, especially geothermal," said Bruce Parkes of Wellington-based Contact Energy. "But the cost of wind and baseload gas is roughly equal with a carbon price of $23 and gas at $7 a petajoule, which is around the current price."
Last December, lawmakers in New Zealand proposed a 10-year moratorium on the construction of any new fossil fuel-burning power plants. But officials from Contact Energy believe that goal can be met without the need for the moratorium - simply because the economics are favorable.
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- "Consumer Choice and the Eco-Social Externalities of Coal"
Photo: Robyn Gallagher