Contact Energy has confirmed it's closing its Otahuhu B power station at the end of next month.
Chief Executive Dennis Barnes says the company has been considering the future of its gas-fired power stations for some time.
He says the decision to close the Otahuhu B station reflects the growth in renewable electricity generation, such as the new Te Mihi geothermal power station.
It's not yet clear whether any jobs will be lost, although Mr Barnes says the team at Otahuhu will be supported, and redeployed where suitable roles are available.
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