New Zealand: Renewable Energy Cheaper than Gas

Investment in renewable energy generation in New Zealand, especially geothermal and wind power, is already more attractive than investment in gas-fired generation, according to a story in Friday's New Zealand Herald.

"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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New Zealand Herald
Photo: Robyn Gallagher