Meridian Energy has signed a package of conditional 20-year contracts with New Zealand's Aluminium Smelter (NZAS) for a portion of the smelter's electricity needs.
The package includes a long-term fixed price contract for wholesale electricity price cover and a demand response agreement.
The contracts, which are conditional on regulatory approval, will replace all current arrangements between the two companies.
Meridian chief executive, Neal Barclay, described the agreement as a "fantastic outcome" that would support the electricity system to become more renewable.
The key terms of the contracts include a 377 megawatt base load volume from 2025 and the availability of approximately 400 gigawatt hours per annum of demand response over the 20-year term.
Meridian will now consider the implications on future pipeline investment and dividend policy.
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