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New Zealand's Newest Electricity Company Tenders Output

Fuseworks Media
Fuseworks Media

The Nga Awa Purua Joint Venture - the electricity generator that owns the recently commissioned 140MW Nga Awa Purua Geothermal Power Station near Taupo - is tendering up to 10 MW of the station output in the form of baseload Contracts for Difference (CFDs).

Interest is expected from major electricity generators, large industrial energy users, independent retailers and potential new entrants into the electricity market.

The Nga Awa Purua joint venture is co-owned by Mighty River Power and the Tauhara North No.2 Trust. Directors are drawn from the Trust and Mighty River Power and include Kevin McLoughlin, CEO of the Trust's commercial arm Ringa Matau, and Mighty River Power's Chief Executive Doug Heffernan and Chief Financial Officer William Meek.

The CFDs will be offered free of any force majeure restrictions, effective from 1 July 2010 for up to three years. CFDs for 125 MW output of the power station have previously been contracted in the near to medium term to Mighty River Power, to enable the Trust to secure debt financing for their investment. Twenty five MW of the initial contracts will be available to the market commencing 1 July 2013 and a further 25MW each year thereafter.

As New Zealand's newest electricity market participant, the Nga Awa Purua Joint Venture joins a growing list of independently governed generators who are making a contribution to the liquidity of the wholesale market. This contribution is expected to become greater with the rapid development of EnergyHedge, the electricity futures market.

Tender documents will be issued on 6 May with a response deadline of 26 May. All responses will be sent to the Trust, treated in confidence, and the decision process will be managed by the Joint Venture Board in the interests of the Joint Venture. Mighty River Power has no unique rights for the plant's offtake in this or any subsequent Tender.

The $430 million Nga Awa Purua station, 14km northeast of Taupo, uses steam from the Rotokawa geothermal steamfield. It features the world's largest single shaft geothermal turbine and generates electricity sufficient to supply 140,000 homes.

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