Renewable energy the new buzzword 

The search for more environmentally friendly power sources has sparked a huge debate among New Zealand's major electricity generators.

Renewable energy, which has become the holy grail for generators in recent years, has been the major buzzword at the national power conference in Huntly.

And Meridian Energy has claimed the high ground after being officially certified as carbon neutral.

Chief executive Keith Turner was buoyant about the news and saw huge positives for New Zealand.

"New Zealand can have an electricity industry that is simply the envy of the world," he says.

He added it was a challenge though for all electricity companies to make it happen with actions, not just words.

Other generators admit their shortcomings but say their are many sides to the story.

"[We] haven't done a great deal to capture carbon on our coal-fired plants in the last 45 years," Genesis Energy chief executive Murray Jackson admits.

He also points out though that New Zealand has a paucity of hydro reserves and would have to focus on increasing capacity before concentrating on thermal energy as a primary power source.

Currently, 40% of New Zealand's power is derived from thermal sources.

Generators say switching to renewable energy is hampered by the increasingly drawn out resource consent process.

Contact Energy chief executive David Baldwin was adamant in his views.

"The vision of meeting New Zealand's energy demand growth from renewable generation sources is almost impossible."

Baldwin added that Contact is prepared to prioritise investment in renewables and delay a new gas-fired station if the government can fast track resource consents for renewable projects.

National grid operator Transpower says transmission issues are the major stumbling block in the drive towards renewable energy.

Chief executive Ralph Craven says that worldwide opinion is that one of the biggest impediments to greater amounts of renewable energy becoming a reality is the non-existence of suitable transmission.