Mercury has reported a strong start to the third quarter, despite dry conditions, thanks to effective portfolio management.
The company's quarterly operational update for the three months ended December 31, 2024, revealed that it had conserved hydro storage in Taupō, ending the quarter with an above-average lake level.
This was achieved by reducing hydro generation while spot electricity prices were low compared to forward prices.
The lower Waikato catchment inflows resulted in a 6% decrease in hydro generation for the second quarter.
However, national demand was 2.1% lower for the quarter, although it increased by 0.7% when normalising for industrial demand response.
Mercury also announced the construction of a $287 million wind farm near Dargaville, bringing its total commitment to new renewables to over $1 billion in the past two years.
The wind farm, with a capacity of 77MW and an annual generation of 221GWh, is expected to reach full generation by late 2026.
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