For the Year Ended 31 March 2010
The Verified Voluntary Emission Reductions above relate to completed generation production for the period 1 January 2004 to 31 December 2007. As at 31 March 2010 unsold Verified Voluntary Emission Reductions were valued at nil (2009: nil).
Kyoto Carbon Credits
The Group has received 1,476,000 (2009:1,476,000) tonnes of carbon emission rights from the New Zealand Government issued pursuant to the Kyoto protocol in relation to completed generation facilities. This represents the maximum rights based upon specified levels of generation output from the new facilities for the period 1 January 2008 to 31 December 2012 and is reliant on the ongoing support of the Kyoto protocol and emission rights within the international community. The Group believes that it will be able to utilise 1,310,000 tonnes of these carbon emission rights. This potential revenue source is taken into consideration in the evaluation of generation development projects and in the valuation of the generation assets.
A contract has been signed with Electrabel, a European energy company, for the sale of 228,000 tonnes of carbon emission rights over five years from 2008-2012. This sale is dependent on the Group’s Tararua Stage II wind farm producing a minimum level of output. A contract has been signed with The Kansai Electric Power Company, a Japanese energy company, for the sale of 300,000 tonnes of carbon emission rights over five years from 2008-2012. Further contracts have been signed covering emission rights generated over the same period. These sales are dependent on the Group’s Tararua Stage III wind farm producing a minimum level of output.
Included in other receivables (note 19) is $11,051,000 relating to Kyoto Carbon Credits generated and pre-sold (2009: $5,947,000). In addition $2,135,000 is included relating to Kyoto Carbon Credits generated but unsold at the end of the reporting period (2009: $1,619,000).