Energy firms establish strategic reserve at Huntly

Genesis, Mercury, Meridian, and Contact have signed agreements to establish a strategic energy reserve centred on the Huntly Power Station.

The agreements, which are subject to Commerce Commission review, aim to support national security of supply and ensure the availability of critical back-up electricity generation and fuel.

The need for a security of supply solution arose during the winter of 2024, when a decline in natural gas supply, low hydro lake levels, and low wind conditions created a strain on the energy supply.

The Huntly Power Station, New Zealand's largest power generation site, plays a crucial role in national energy security, particularly when hydro lakes are low and wind generation is reduced.

The agreements include 10-year Huntly Firming Options covering 150 MW, as well as the establishment of a solid fuel reserve.