Marsden B (coal fired plant) derailed by (GHG) emission rules (NZ)

[jpak]

http://www.stuff.co.nz/stuff/3958394a7693.html

Climate Change Minister David Parker has written to all power generators, telling them the new energy strategy, due out this year, will impose charges on carbon dioxide emissions on all new power stations.

Mighty River Power, which is going through the consent process to fire up the Marsden B plant, is now conceding that the prospect of carbon charges changes the economics and it is unlikely to go ahead.

"We would be less enthusiastic about it in a carbon pricing situation and relatively more enthusiastic about other options," said external affairs general manager Neil Williams. The company's first preference is to use renewable energy and it is optimistic about new geothermal power stations.

Parker's letter says the government is considering three proposals to reduce the electricty sector's greenhouse emissions: either a straight carbon charge, an emissions trading scheme or direct regulation under the Electricity Act.

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