The 10-year ban on building thermal power stations will be overturned this week after Energy and Resources Minister Gerry Brownlee started the process yesterday in Parliament.
The Electricity (Renewable Preferences) Repeal Bill overturned what was widely known as the thermal ban, which made it a criminal offence to construct thermal power stations, including gas-fired plants, Mr Brownlee said.
"The Government strongly supported renewable energy but a thermal ban now puts the security of our supply at risk.
Thermal generation, particularly from gas-fired generation, is the insurance card underpinning the security of our electricity system."
Overturning the ban will outrage environmental groups and Labour MPs but Mr Brownlee was unmoved by the expected protests.
The ban would put additional strain on the sector.
Last winter demonstrated the critical importance of gas-fired generation.
At that time, electricity from thermal sources was generating more than 50% of New Zealand's electricity needs, he said.
The Government believed banning new baseload gas plants would encourage the coal-fired station at Huntly to keep belching out CO2 emissions.
"Reducing carbon emissions in the electricity sector remains a goal and renewable technology will be encouraged through the emissions trading scheme."
All the major power generators and lines companies, as well as other industry groups, had expressed concerns and unease about the ban, Mr Brownlee said.
About one-third of New Zealand's electricity generation came from thermal sources, with the rest from renewable sources.
The Bill will be debated under urgency, with Parliament due to rise at 6pm tomorrow.
Mr Brownlee said the Government was working on its policy goal to have 90% renewable electricity generation by 2025.
It expected a revised ETS would not lead to any new coal-fired stations.
The minister also ended the ban on traditional light bulbs, meaning their continued sale would be allowed.
"This Government has real concerns about telling people they have to move to energy-efficient light bulbs by decree. It has been well signalled and will come as no surprise that the Government is lifting the ban on traditional, or incandescent, light bulbs."
