“Hodgson is not stupid. He’s intelligent and pragmatic and is now realising that gas is better, better than coal from at least an environmental point of view,” one commentator told EnergyReview.Net today.

“And you have to remember there’s an election coming up next year and this Labour government is not going to want to get more offside with the Greens by promoting coal ahead of gas.”

“I think the government underwriting some of the risk of Genesis Energy’s new gas-fired Huntly power station, plus Hodgson’s comments to the gas industry reform conference, are the early signals that the government is getting very positive about gas.”

Last month the government announced it was underwriting some of the risk associated with long-term gas supplies for the Genesis e3p project; and earlier this week Hodgson told the Auckland conference that it was a good thing gas was going to continue playing a leading role in this country’s energy equation for many years to come.

The commentator said e3p would be about twice as efficient as the existing gas-coal station at Huntly and less polluting than the 1000MW plant. “That’s the reality, and the economics are easier with gas than with coal.”

Another commentator said Hodgson was aware the New Zealand public was more concerned about security of energy supply, at moderate prices, than of any environmental impacts.

Contact Energy yesterday announced the results of its Positive Energy campaign, which found 67% of the 27,000 people who responded ranked security of supply as the most important factor, ahead of electricity prices (21%) and impact on the environment (12%).

“New Zealanders are well aware that we face major choices to secure our energy future; our energy choices need to balance the competing priorities of price, environment and security of supply,” said Contact spokesman Pattrick Smellie.