Business backs policy not to ban new baseload thermal generation

The New Zealand Business Council for Sustainable Development welcomes National's policy to drop a proposed 10 year ban on building new base load thermal power generation.

Business Council Chief Executive Peter Neilson says the ban isn't needed.

Putting a price on emissions, through the emissions trading scheme, will be enough to make renewable energy projects more attractive for investors.

Generators have told Business Council-commissioned researchers the country can expect to see more than $9.7 billion invested in renewable energy generation during the next 10 years as a result of or underpinned by having a price on emissions.

The Business Council believes the target of the country achieving 90% renewable energy generation is achievable.

"We don't think banning new thermal baseload is necessary to encourage investment in renewables. It is happening already. One major generator, with approval to build a combined cycle gas plant, has shelved that in favour of massive investment in geothermal and wind power.

"We say trust the market. A price on carbon will do the job of encouraging renewables.

"The key is to pass the emissions trading bill as soon as possible to provide certainty for investors, and ensure low-carbon technology investment decisions are made as soon as possible," Mr Neilson says.