Contact Energy - CEN Chart

[fish]

Will El Nino actually help Contact Energy sans Otahuhu B power station? Te Mihi makes 165MW whereas Otahuhu B is 370-400MW... so presumably Contact's ability to go long on their generation portfolio is reduced.

CEN generates 25% of total nz electricity- more than it retails and since otahuhu B is costly to maintain and under-used closing it should help raise both long and spot prices-possibly giving windfall spot prices should we have a drought.Hydro inflows are currently less than average and North Island looks dry on next 10 days rain forcast.
TCC has 400mw combined cycle-high temperatures special metals- modern and highly efficient plus 200mw gas peaker.I believe they know what they are doing

[Jantar]

Will El Nino actually help Contact Energy sans Otahuhu B power station? Te Mihi makes 165MW whereas Otahuhu B is 370-400MW... so presumably Contact's ability to go long on their generation portfolio is reduced.

You also need to add 210 MW from the Stratford Peakers and 108 MW of hydro generation freed up with the change to Transpower's transmission pricing methodology. Meridian have also had around 40 MW of additional hydro freed up.

[Coles Killer]

CEN generates 25% of total nz electricity- more than it retails and since otahuhu B is costly to maintain and under-used closing it should help raise both long and spot prices-possibly giving windfall spot prices should we have a drought.Hydro inflows are currently less than average and North Island looks dry on next 10 days rain forcast.
TCC has 400mw combined cycle-high temperatures special metals- modern and highly efficient plus 200mw gas peaker.I believe they know what they are doing

TCC was commissioned in 98 / 99 or something wasn't it? That isn't exactly a spring chicken by gas turbine standards... and now you have a lot riding on that single shaft, you can't just fire up Otahuhu B when you need to do something on TCC. I just think their ability to take advantage of dry years is reduced, that's all I'm saying, but yes I agree I think they know what they're doing and its the right call.

But that's interesting about the transmission charges, 148MW of additional hydro capacity being available is very significant.

What will happen with the money from the Otahuhu land sale? Special divvy?

[fish]

The Taranaki Combined Cycle Power Station (TCC) is a large, efficient and modern plant, producing 377MW of electricity. The heart of TCC is one of the largest gas turbines in the world housed in a single building. Constructed from special metals and featuring advanced cooling systems, the Alstom turbine burns gas at a temperature of 1,200 degrees celsius. The exhausts heat the steam boiler at temperatures around 640 degrees celsius. Within the turbine, two separate combustion sections allow the plant to produce very low emissions – a trademark of the Alstom gas turbine.

Contact Energy commissioned its 200MW gas-fired peaking power station in early 2011. The facility plays an important role in providing New Zealand with a secure supply of electricity, while enabling the country to increase the level of electricity generated from renewable sources. The two fast-start gas turbine peaking units supply enough electricity for 200,000 average homes and can go from a cold start to full load in just 10 minutes. The gas turbine peaking units have been installed on the site of Contact's former Stratford power station, adjacent to the company's existing Taranaki Combined
However Cole Killer is correct about the TCC being commissioned in 98/99.
I don't know about its longevity -otahuhu b was a little younger!
I have the impression it is reliable and problem free but jantar will have better insight into this than I have

[troyvdh]

Some institutions buying in some getting out....fairly large gyrations daily.....I wonder when sellers have finally sold out....

[sb9]

Yeah, it began well on NZX this morning after crossing $5 and slowly drifted down as ASX opened. Guess most of the direction is coming from ASX.

[sb9]

https://www.nzx.com/companies/CEN/announcements/271815

Buy-back announced...

[Coles Killer]

https://www.nzx.com/companies/CEN/announcements/271815

Buy-back announced...

Seems relatively chunky too, $100 mill is decent.

[sb9]

Seems relatively chunky too, $100 mill is decent.

Certainly, this should retrace the sp back into $6 mark in the near term.

[Coles Killer]

Going to be interesting to see what happens without the influence of Origin on the board, will there be some blood letting in the board / management team, other than Mr Pryke?