The largest electricity producers in New Zealand, Genesis Energy Limited, Mercury Energy Limited, Meridian Energy Limited and Contact Energy Limited, are considering market options to strengthen energy security amid challenging market conditions. This is reported in a press release from Genesis Energy.
New Zealand is facing an acute shortage of energy resources due to the rapid reduction of natural gas reserves, low water levels in hydroelectric power plants and minimal wind energy production, given the unstable medium-term prospects for gas supply.
In order to solve the energy problem, four companies have concluded a non-binding agreement to continue operating the power units of the Huntly Power Station Rankine. It was originally planned that one of the units would be decommissioned in 2026, and the other two in the early 2030s. However, at the moment, installations can play a crucial role in improving the safety of the energy system in New Zealand against the background of the risks of using renewable energy sources.
The commercial structure of the project is under development in parallel with the assessment of pricing and costs. Potential components of the framework include a strategic fuel reserve to prevent disruptions to the supply of other fuels, as well as measures to overcome electricity shortages with an extension of up to ten years.
The project is scheduled to enter into force at the end of 2025 after regulatory approval.
Genesis Energy is a New Zealand company producing and selling electricity, natural gas and liquefied petroleum gas. The company was formed as part of the reform of the New Zealand electricity sector as part of the dissolution of the Electricity Corporation of New Zealand. The New Zealand government owns 51% of the company's shares. The headquarters is located in Auckland (New Zealand).
Mercury Energy is a New Zealand company producing and selling electricity, gas, and mobile communications services. Electricity is generated only from renewable sources. Mercury owns the GLOBUG brand for prepaid electricity generation. The headquarters is located in Auckland (New Zealand).
Meridian Energy Limited is a New Zealand company for the production and sale of electricity, natural and liquefied petroleum gas. The company produces the largest share of electricity in New Zealand (35%). The headquarters is located in Wellington (New Zealand).
Contact Energy Limited is a New Zealand company producing and selling electricity, natural and liquefied petroleum gas, and mobile communications services. The company is the second largest electricity producer in New Zealand (after Meridian Energy) and holds 22% of the market share among electricity retailers. The headquarters is located in Wellington (New Zealand).
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