Meridian Energy, Other New Zealand Power Giants to Establish Energy Reserve at Huntly

MT Newswires Live

08/04

Meridian Energy (ASX:MEZ, NZE:MEL), Genesis Energy (ASX:GNE, NZE:GNE), Mercury NZ (ASX:MCY, NZE:MCY), and Contact Energy (ASX:CEN, NZE:CEN) signed a 10-year deal to establish an energy reserve at Huntly power station to boost electricity supply security amid growing risks from gas shortages and dry-year conditions, according to a Monday filing with the New Zealand and Australian bourses.

The initiative responds to winter 2024's energy shortfall, driven by falling gas supplies, low hydro lakes, and weak wind generation, the filing said.

The reserve includes 150 megawatts of Huntly firming options with 50 megawatts each for Contact, Mercury, and Meridian, and supports Genesis in building a 600,000 tonne solid fuel reserve, initially coal but with potential to switch to biomass, the filing added.

The agreements, pending Commerce Commission approval, are set to start on Jan. 1, 2026, with plans to allow future access for other market participants, per the filing.

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