4 days ago
New Zealand's major power companies join forces to improve energy security
Genesis Energy's Huntly Power Station.
Photo:
Genesis Energy
The country's big four power companies are moving ahead with plans to extend the life of the
Huntly Power Station
to improve energy security.
Genesis Energy, which owns the station, said it signed a more detailed non-binding terms sheet with Mercury, Meridian, and Contact which sets out in greater detail how the proposal would function, and involved extending the life of the Rankine coal and gas-fired units due for retirement in the next few years.
The proposed agreement would run for 10 years until 2035.
The companies said they were trying to avoid last year's
power supply scare
when Huntly was needed to prop up electricity supplies, when gas and renewable sources were lower than expected.
The four generator-retailers (gentailers) wanted to establish a strategic fuel reserve aimed at offsetting the impact of "dry-year risk" on electricity prices by keeping Huntly's three Rankine units online, instead of retiring them.
Genesis said it has engaged with the Commerce Commission in respect of the proposal, with the aim of having the reserve in place by early 2026.
Although the latest agreement was non-binding, Genesis has said it would require firm commitments from the other power companies by early November, as one of the Rankine units was scheduled to be retired otherwise, in January 2026.
That would allow time for operating and compliance works to be carried out, allowing all three Rankine units to be available for winter 2026.
