New Zealand Government to support energy companies' investments in critical infrastructure

The New Zealand Government announced on Wednesday it will financially support investments by energy companies to build critical electricity infrastructure.

The government owns 51% of the former state-owned power generators Genesis Energy Mercury and Meridian. New Zealand's energy prices are rising as the supply is tightening. This has put energy generators on the radar.

In a press release, Finance Minister Nicola Willis stated that she wrote to three electricity generators informing them that the government was prepared to fund capital requests for investments that are strategic and commercially logical to promote energy security.

She said that reliable and affordable energy was key to New Zealand’s prosperity.

A review of the electricity system in the country by an independent body found that companies were unable to invest in large-scale projects because they believed that the government wouldn't provide the equity to back these investments.

Willis said that the government is committed to maintaining its 51% share in the companies.

The government has also announced that it will procure a facility to import liquefied gas and strengthen the Electricity Authority in order to make it "a more powerful, decisive regulatory body." (Reporting from Lucy Craymer at Wellington Editing done by Matthew Lewis.)

(source: Reuters)